What will the future hold for NFT and bitcoin? Will other digital products take its place? Check out the reading that follows for an explanation.
Non-Fungible Token (NFT) has recently come up for discussion in the community.
In particular, Sultan Gustaf AL Ghozali, also known as Ghozali Everyday, became well-known after becoming “suddenly wealthy” by selling selfies using this digital asset.
The 22-year-old man sells selfies on the OpenSea platform. The total money in his pocket so far is IDR 1.5 billion. OpenSea is a platform that offers sellers, buyers and creators of digital assets to transact with the cryptocurrency Ethereum (ETH).
Talking about Bitcoin and NFT, maybe many ordinary people don’t understand this. Actually, Bitcoin and NFT have quite a visible difference, you know, Be-emers.
Recently, NFT has become popular again and has become popular because many people have created works or memes that are unique and different from others, which can then be traded on NFT at fantastic prices.
NFT’s visual arts, which include everything from fine art to music to food to strange tweets, are what contribute to its popularity. According to wartaekonomi.co.id, this digital asset is doing well on the market, much as a relatively rare picture from the 17th century in Europe, whose selling price can reach millions of euros.
When it comes to investing in cryptocurrencies, NFT is a crypto technology that displays a digital certificate declaring that the party is an investor and that he has virtual assets in the form of images, movies, or other forms that might be beneficial for him.
Meanwhile, Bitcoin is an electronic currency whose use is to be able to make transactions over the internet without using intermediaries, aka without using bank services.
Then, what is the difference between Bitcoin and NFT?
What is NFT?
Non-Fungible Token or known by the abbreviation NFT, in recent weeks has been soaring high. NFT itself has existed since 2014. Now, NFT is considered to be able to make it easier and very practical in buying and selling digital art.
Launching from Forbes , NFT is a digital asset that can represent real-world objects, such as paintings, short video works, music, and even in-game items.
Quoting from inet.detik.com , NFT also belongs to one of the types on Blockchain which refers to tokens or codes issued from holding on the Ethereum platform that are adapted to the ERC721 standard or protocol.
NFT is also a place where you can buy and sell online and make payments using cryptocurrency. When we make the purchase and payment, we will get a unique code.
NFT itself is a digital asset in the form of artwork or collectibles that can be used to buy goods virtually. All these digital assets are verified via blockchain.
The NFT market only accepts cryptocurrencies as payment. In other words, people who want to buy products in the form of NFT must have an account on the market platform and crypto assets. So what exactly is the difference between NFT and cryptocurrency
Then, What is Bitcoin?
Well, Bitcoin itself is an electronic currency that was created in 2009 by someone who does not want to show his real identity. He uses the pseudonym Satoshi Nakamoto. Uniquely, quoting from investopedia.com , Bitcoin is not dependent on others.
Bitcoin can only be used to make online transactions without any intermediaries at all. Bitcoin uses a peer-to-peer (P2P) system, which is a system that works without a single storage or administrator. Launching from akseleran.co.id , in the United States, Bitcoin is often referred to as a decentralized currency.
Bitcoin and NFT do not have the same value. NFT is more likely to be an investment platform for buying and selling or auctions that will later get a code or certificate as an investor buying or selling these digital virtual assets. While Bitcoin has a value that can be said to be the same as other cryptocurrencies as a transaction tool on Blockchain.
The difference between NFTs and cryptocurrencies is that crypto assets such as Bitcoin and Ethereum are interchangeable, meaning that they can be substituted or exchanged for other identical assets with the same value, such as dollars or other cryptocurrencies.
Meanwhile, an NFT is a unique asset and cannot be exchanged, or in other words, no two NFTs are the same. NFT creates scarcity among unlimited available assets, there are even certificates of authenticity to prove it.
In other words, people who want to buy products in the form of NFT must have an account on the market platform and crypto assets.
Crypto assets can be traded or exchanged for each other. Digital currencies have the same value. For example, the value of 1 bitcoin is always equal to the value of another bitcoin.
To buy NFT, there is a separate market such as OpenSea or a local market for example, such as TokoMall. The NFT market is decentralized because it uses a blockchain system. People can buy NFT directly with the crypto assets they already have in their wallet.
The concept of selling NFT is similar to other companies. But using blockchain technology. The creator of the work prints or creates the work in NFT in the marketplace of their choice and then sets a certain amount for public display.
The creator of the work receives the proceeds from the sale when the NFT is sold to the first buyer. It can also continue to receive a share of the royalties when the NFT is sold to second and third buyers, and so on.
The distribution of royalties varies based on the policies of each market platform used
Cryptocurrencies can now be purchased through exchange platforms. Once people decide to buy crypto tokens like bitcoin, ethereum or others, they need to create an account on an exchange to exchange rupiah or other currencies for crypto assets.
NFT and Its Effect on the Digital Economy
Teguh said NFT has made a new breakthrough in the world of the digital economy. The sale and purchase of NFT assets is a solution to the problems faced by artists whose works are prone to plagiarism or duplication.
Digital art in the form of NFT can be an alternative for various groups to invest in a work of art. Investing in digital art doesn’t have to cost a fortune. This is because investors do not need to consider additional facilities such as transportation or exhibition space after purchasing the artwork.
However, that does not mean that NFT does not have weaknesses. Determining the value of an element in NFT is not a clear system. Until now, the popularity of the original owner of an NFT asset is still considered important in determining the value of an NFT asset.
In addition, NFT is an illiquid asset. Because whoever buys NFT is not necessarily able to resell it.
“Like other investments, in the NFT world there are risks that can arise at any time,” said Teguh.
In contrast to NFT, cryptocurrencies actually have a high level of liquidity. This is because cryptocurrencies can be traded at any time. However, it also carries a high risk with the concept of high risk and high reward.
Conclusion
The primary distinction between NFT and bitcoin, according to Bitocto creator and CEO Milken Jonathan, is that the NFT bears a distinctive and one-of-a-kind digital signature. Cryptocurrency assets, meanwhile, are worth the same.
He claimed that ETH is the most often used cryptocurrency right now for buying and selling NFTs.
As a result, in order to purchase NFT, purchasers must first buy ETH on an exchange that is authorized by the Commodity Futures Trading Regulatory Agency (CoFTRA).
