6 Common NFT Myths You Should Be Aware Of In 2022
NFT is currently the talk of the town.
NFTs are blockchain-built unique digital assets, each having a unique token code that makes them privately owned and secure. That’s right! NFTs (Non-Fungible Tokens) are blockchain-based digital assets that offer private ownership.
Since the wave of digitalization is growing, multiple things are being formed into digital assets, apart from NFTs. On the other hand, NFT incorporation in games is the latest trend most custom blockchain development companies have grabbed.
However, the cost to make an app is pretty much close to typical game developments.
More importantly, NFTs can take multiple forms, such as in-game items, memes, avatars, tracks, and many others. Additionally, it can safeguard the uniqueness and authenticity of the digital asset so that it’s kept private, and thanks to blockchain technology which has even made them sort of unhackable.
On the bright side, you can even sell them in exchange for cryptocurrencies. What’s even more exciting about NFTs is that this has intrigued many artists to invest and make money online. Some have already done and managed to account for over $250 million. Then again, with every rising star comes criticisms, and that’s what we’re going to talk about. Keep reading!
Although NFT has more success potential, there are some lingering myths too. Unfortunately, these NFT myths are pretty harmful and very misleading. Not to mention it’s been long said that digitalization is the future. And indeed it is.
Here are some NFT myths that you should be aware of before making alternative investments:
Myth 1: NFTs are Complex in Nature
The encrypted nature indicates individual ownership over the digital assets, although this very idea of scarcity is pretty much tempting to NFT collectors. Using blockchain technology makes NFT buying, selling, storing, and collecting secure and credible. On the flip side, this very nature of NFT consuming and selling is very much complicated at first glance to some.
For which, some believe it to be hard and complex to grasp its nature quickly. Then again, it has always been the same case for every new technology which made its first appearance. At some level, to understand the underlying concept of NFTs, you must have somewhat technical knowledge of blockchain and cryptocurrencies.
Above all, if you pay close attention to this state-of-the-art technology, perhaps you could enjoy the NFT in the coming future easily. Not to brag, but it’s booming.
Myth 2: NFTs are Imaginary
Many consider NFTs somewhat illusive in nature and therefore as a not excellent platform to invest in because of their inability to be exchanged into physical money. However, usage of NFTs differs from person to person; some like to store them, and some play around with them. At the same time, the scarcity factor in this scenario boosts NFT’s worth by the extensive period for purchase.
Too often, the myths can get in your way to secure lucrative business opportunities. Not to mention many have disregarded lingering myths and excelled their NFTs’ values in the market. After the eminent success of bitcoins, these blockchain-powered digital assets are the latest techs to invest in. Plus, blockchain empowers secure and credible NFT transactions, thus, crafting a novel way to do business.
Myth 3: NFTs are Useless
NFTs have grabbed on the wheel of success and people’s trust after their not-so-long exposure to the blockchain market. This is why many misunderstand the real essence of NFTs and reflect on it as a scam and useless asset to trust in, although a plethora of technical businesspeople identified and invested in them at first sight.
Nonetheless, a myriad of legendary artists and technical spirits are exploring NFT today, as it has attracted many traditional-minded people who wouldn’t usually prefer leaving their confined world. Yes, that’s how powerful blockchain technology is becoming.
Myth 4: Anyone Can Copy NFTs
Wrong! And completely Wrong! Nobody can copy NFTs, as they’re digital assets entirely assisted by blockchain technology. Individual ownership gets to record in the shape of codes and a unique one-of-a-kind algorithm that cannot be changed. On the other hand, blockchain technology is more secure than physical assets, which cannot be easily hacked and copied.
In a more typical sense, blockchain guards its built assets, just like NFTs. By the way, in the world of Game-fi, NFT plays a more enticing role that we cannot overlook. NFT based games ensure a novel way to earn your income. In the P2E (Play-To-Earn) models, you can earn and sell your in-game NFT (Digital game assets) to other players/NFT collectors to build your income – easy-peasy. On the bright side, the NFTs exchange process is simple and easy, just like trading blockchain-based crypto, bitcoins, and other cryptocurrencies.
Myth 5: NFTs are Harmful to the Environment
Throughout trading NFTs, cryptocurrencies come into use. But also, for minting – a euphemism for data recording on the blockchain, these blockchain cryptos are exploited. When it comes to validating these NFT transactions, Bitcoin and Ethereum are proof of the work. However, these models consume a lot of energy to solve complex and streamline the technical aspects.
The increased use of electrical energy is the only means to power these technologies. That said, this myth can be partially true for damaging the environment. Then again, let’s face it, we’ve been using a lot of electrical energies for our daily lives’ workings. So, this claim goes to the core perspective of electrical energy consumption, not only for NFTs, and there are green apps that help with lowering the energy consumption and carbon footprint.
Myth 6: NFTs Are Helping Money Launderers
Another misconception is that NFTs are top in money laundering and that blockchain-based cryptos are for crooks and tax cheaters. Not to mention, but too often, cash is much more crime-driven than cryptocurrencies. Everything on blockchain technology is entirely transparent, and the tiniest amount of improper action is traceable. Besides, on the blockchain, tracking wallet addresses and recovering stolen funds is pretty much simple and easy. So there goes the money laundering myth into the trashcan.
How To Address NFT Myths and tittle-tattles?
Generally speaking, people talk! And they can feed you tons of garbage about technologies’ inability and untrustworthiness. But then again, don’t let them fool you whatever prejudices they have.
On the other hand, they may be right on some level to know for sure the underlying reality instead of believing what you’ve heard and to sharpen your mind by not missing out on anything. For that, you can talk to experienced specialists relating to that field, or you can do your research in any way possible to dig out the reality.
In the NFT case, a lot has been said lately. But what’s even more surprising is some believed the opinions rather than analysing the actual concepts.
Well, I did my research. And here I am sharing the NFT myths to be aware of. Still, you can do your own investigation to uncover the truth if there is one.
What are the Pros and Cons of NFTs?
To show more credibility by this post, we neither support nor oppose anything but only reveal the underlying facts. NFTs are intriguing and a compelling field to devote to by investing. The harsh reality: nothing only has a beneficial side; it might include some disadvantages or risks too.
In any case, if you invest in NFTs it’s best to see the upsides as well as the downsides.
- Potential Value Growth
- Complete Ownership of Something Unique – Digital Assets
- Crafted a Global Excitement and Trend
- Each Data Record – Transparent and Credible Transactions
- Physical Arts Can’t Be Digitalized
- Uncertain Values
- Environmental Cost
Regardless of the disadvantages, the rising demand for NFTs is booming. And many NFT collectors are playing with millions of dollars worth of digital assets.
To sum up, blockchain technology expansion in the coming future is pretty much noticeable, considering the frenzy it experiences now. While NFTs are still in the developing stages and it’s rather difficult to grab a handle on them, it is essential to study NFTs and their underlying aspects. If not, there is a high chance of falling into misconceptions and myths, and evidently, you may as well fail to benefit from them.
Before jumping to any conclusions because of the ongoing fad, it’s necessary to conduct thorough research. When it comes to Non-fungible Tokens (NFTs), it’s better to eliminate the risks of buying and selling NFTs in the market before investing.
With the penetrating mobile app development trend, don’t fall behind and get your own app built soon. For that, you can consult custom software development companies today.