The Nyan Cat meme was auctioned for $600,000 in February 2021. Jack Dorsey, the creator of Twitter, auctioned off his very first Tweet on his own social site for $2.5 million.
What are the similarities and differences between these items? They do not exist in the actual world, but thanks to NFTs, they’ve become highly valuable.
NFTs were developed by Luis Octavio, CEO and founder of Dux Cripto, who describes the technology as “a type of decentralized certification.” NFTs have allowed us to have complete control over digital assets. Consider how they are similar to and dissimilar to a real object, such as collector card for the NBA and Pokemon.
The main danger for NFT investors, like fine art, real estate, and other cryptocurrencies, is that the products will eventually lower down or lose their value. If the popularity of NFTs diminish and people cease wanting to acquire them, token holders may find themselves stuck with them.NFTs, like all cryptocurrencies, have also had a significantly environmental impact. To ensure that the encryption is valid, NFT transactions must be confirmed using blockchain technology, which requires a lot of energy