Over the past couple of years, NFTs (non-fungible tokens) have impacted the Internet. NFTs are the copyrights to digital art. These digital art transactions are an example of blockchain technology. The more people that buy NFTs, the more the blockchain builds.
NFTs
Similar to cryptocurrency and stocks, the value of these tokens depends on the demand. Buyers will pay from about $100-$6,000 for an NFT. It comes with a Token ID, which is proof of authenticity and ownership. You can even buy memes. NFTs are typically purchased via cryptocurrencies, such as Etherium. This method of transaction also benefits crypto by allowing a new medium of exchange. You can read more about NFTs and copyrights here.
NFT’s have been around since the early 2010s, with Nyan Cat sparking the trend as one of the first high popularity memes to be purchased by an individual. Another example of a popular internet meme turned NFT is the viral youtube hit “Charlie Bit My Finger.” NFTs surged in popularity in 2020. Now, the Bored Ape Yacht Club is taking over the digital art world.
Bored Ape Yacht Club digital art sold as an NFT.NFTs’ Impact
NFTs have an impact on the Internet, cryptocurrency, and art. Like with Dogecoin, NFTs are as valuable as the Internet hypes them up to be. Then, NFT holders can either hold on to it or sell it for profit. The art industry has mixed feelings about this. Most embrace it as ever-evolving art. But, some argue that the digital purchase of a digital image will devalue art. Verizon says, “In 2020, the revenue from all NFT marketplaces for the entire year was $250 million.”
There are also environmental concerns on the matter due to data mining. Cryptocurrency has the same issue. However, NFTs seem like a solid concept: you purchase a collectible item, it will likely gain value over time. Then you can either sell it for profit, or just be able to say you hold NFTs.
What do you think about NFTs? Let us know in the comments!
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Tracy is the Design Manager here at Redwood Creative. She’s been designing amazing graphics and web layouts for large and small businesses for upwards of 7 years.
