In 2021, the NFT trend in cryptocurrencies is growing and is becoming a hot topic that many Indonesians talk about.
Prior to this, the NFT movement in cryptocurrency was becoming increasingly well-liked. The popularity of other digital assets like DeFi and Bitcoin has undoubtedly astounded the Indonesian populace.
Since the introduction of Bitcoin in 2009, three different categories of digital assets—Bitcoin, DeFi, and NFT—have dominated the growth of cryptocurrencies.
The Beginning of the NFT Trend in Cryptocurrency on the Rise
NFT stands for Non-Fungible Token. Non-fungible means something that cannot be exchanged, a work that has its own uniqueness.
Non-fungible assets can be in the form of photos, paintings, mockups, buildings, music, pictures, animations or any buildings. Assets like this can be duplicated, but the original work is still only one that has been NFT.
The concept applies in NFT. Tokens here refer to digital certificate files stored in the blockchain.
Before being as popular as it is now, NFT or non-fungible tokens have actually existed since 2014. At that time, the use of NFT was still not much or still less popular than Bitcoin. The presence of NFT in 2014 is expected to be an alternative to the trend of investing in cryptocurrencies other than Bitcoin. Because, in 2014 Bitcoin experienced a sharp decline in price up to 50%.
The widespread Bitcoin hacking at the time contributed to this price decline in part. Naturally, this makes investors hesitant to invest in bitcoin. Without a doubt, the price of Bitcoin fell drastically in 2014, dropping almost 50% from 2013.
What distinguishes NFT and Bitcoin from each other?
A digital certificate for photo, video, and other digital form ownership using NFT is a sort of cryptography.
On the blockchain network, digital ownership certificates for images, videos, and other digital formats will be safely kept.
Other digital currencies, such as Ethereum and Bitcoin, are supported by this blockchain network.
A simple illustration of the use of NFT in cryptocurrency , for example you are an artist who has a painting, to ensure that you are the owner of the painting. You can protect the original painting with a digital certificate with a unique code inside without anyone out there having the same code as you.
If the NFT is already encrypted into the blockchain, this leaves the original painting with the digital certificate only yours. Although it is possible, there are many similar paintings out there.
You can not only collect valuables in digital form on NFT. Instead, you can also sell your collection to other people. Owning an NFT digital asset is the same as owning a valuable asset in the real world.
In addition, NFT also does not have an exchange rate like Bitcoin. If you buy an item for USD100, at that time the value of USD100 is equivalent to the price of Bitcoin on the market. So, the exchange made by Bitcoin owners can be said to be equivalent to the current exchange rate.
This is different from NFT in cryptocurrency , this type of digital asset does not recognize the existence of exchange rate equality. So, the NFT that you sell to other people can be much more expensive than the original price.
Therefore, transactions using NFT are widely used by bidders when they want to buy or sell valuables through an auction mechanism.
That is the most striking difference between NFT and Bitcoin in the cryptocurrency world . Currently, NFT has become a trend in the creative industry to protect the copyright of creators from the threat of counterfeiting and so on.
In theory, any digital file can be sold as NFT. This is because the value of NFT is file originality. Even though they have been purchased, these works can still be freely circulated and duplicated by internet users.
However, the authenticity of the file cannot be falsified. We quote from the BBC, this is because the record of who owns what in the blockchain is recorded in a ledger that is maintained by thousands of computers.
Originality is what makes NFT valuable. Like buying the work of a certain painter, the work can be plagiarized thousands of times but the buyer remains the original owner.
Famous Artist Earns Almost IDR 1 Trillion from NFT
The NFT trend in cryptocurrencies is getting more and more popular in the creative industry. Because, there is a success story of a digital artist named Miken Winkelmann. This artist has succeeded in selling a collage of all his works that have been previously made at NFT.
The sales of Miken Winkelmann’s creations at NFT reached Rp998 billion or almost Rp1 trillion. This artist’s digital collection consists of various previously created graphic designs entitled Everydays: The First 5000 Days .
In addition, there are also Jack Dorsey’s Twitter tweets and other documentation from famous public figures that you can find in collections on online auction platforms , such as the Valuables platform.
Future Potential of NFT
More and more people out there are getting into the creative industry. This of course will further enlarge the global NFT market. Because, all the creators or artists out there would agree that fighting art counterfeiting is a must.
In the past, a valid document to show that you are the real owner of a valuable item was in the form of a physical document. Where, physical documents are more susceptible to being damaged, falsified, and so on. Through NFT, the creators or artists out there don’t have to worry about that.
Because digital certificates created via NFT have a unique code and metadata so that they can authentically show that you are the original owner of the valuable item.
In Indonesia, the NFT feature in cryptocurrency has begun to be introduced to Indonesian artists. For example, writer Denny JA, who is known to have managed to earn Rp. 1 billion from paintings sold on NFT.
The presence of NFT is also a promising investment opportunity for artists or musicians in Indonesia. Where, Indonesia has so many legendary musicians with their works that until now still exist in society.
Documentation of a band’s or musician’s journey from the start to the present is one of the items that can be sold at NFT. Consequently, the records that were previously thought to be worthless. It is currently available on NFT as a royalties system, which is seen to have the potential to benefit Indonesian musicians.
Who are you?
Do you believe any images, recordings, or digital records to be interesting and historic?
If so, you can also compile old NFT documentation.
Do you have a sufficient understanding of how NFT and cryptocurrencies interact? Now is the moment to take action to profit from it.
