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Even though they are very volatile, Non-fungible tokens (NFTs) are a relatively new thing in the art world.

ART Crypto art, NFTs, digital assets, and cryptocurrencies are still in their early stages.
What kind of market does Crypto art and NFTs have?
Luxury and high-end brands have a lot to gain from NFTs. Rich art collectors and art lovers often want them. The general public of art lovers, on the other hand, knows less about NFT than they do about other arts-related topics (paintings, sculpture). Most people who are interested in buying or selling art have heard of the phenomenon, but they haven’t had a chance to get into this market yet.

So, what are NFTs, and why are they sometimes bought for crazy amounts of money?

What do NFTs really mean?
NFTs were made possible by blockchain technology. Most people have heard of blockchain technology because of cryptocurrencies like Bitcoin, Ethereum, and others.

“Non-fungible token” is the same as “non-exchangeable token,” and “token” is the same as “asset” in this case. Artists scan their works or make them on the computer to make NFT art. After that, the task is sent to the right marketplace and added to a blockchain.

So, an NFT is a digital asset that is one of a kind and can’t be traded. This is different from regular money and cryptocurrencies, which can be traded and are not one-of-a-kind. So far, everything has been going well, but why do so many NFTS cost so much?

Art has always been seen as a sign of wealth.
A non-fungible token’s true value, or the price paid for it, is only determined by the value given to it. So, it all comes down to the artist who made each NFT. In theory, it works the same way as traditional art: the more famous the artist, the more the work costs. The NFT trend has spread to even the most prestigious fashion houses. Gucci, Louis Vuitton, Dolce & Gabbana, Givenchy, Burberry, Jimmy Choo, and Balmain are some of the high-end brands that have made collections with NFT artists or worked with them.

For whom are the NFTs made?
First of all, not everyone can buy non-fiat currencies (NFTs). Also, NFTs can’t be bought with regular money. You exchange them for bitcoins instead. To get an NFT, you have to first buy a digital currency like Bitcoin or Ethereum, which you can then use to buy the NFT.

So, most people who buy NFTs are crypto fans or people who know their way around the digital world and have cash. NFTs aren’t as good for this purpose as regular luxury items, which are often bought to show off. Consumer experts agree that the NFT market is aimed at people who are “patricians.” This is shown by the fact that they don’t want to show off their money in public and prefer quiet luxury items.

Who needs to buy NFTs?
Cryptocurrencies are highly volatile by their very nature, so the price of Bitcoin or Ethereum could change a lot. So, every investment in digital currencies is a gamble and comes with a certain amount of risk. Theoretically, nothing about NFTs is new, so they should be used as an investment tool with some care. But people with money and a wide interest in art can find works by well-known artists that are worth looking at more closely.

The Search for Usefulness with NFTs 2.0 and WEB 3
The first NFTs were very simple from a technical point of view. Crypto fans who were interested in how they worked or liked how they looked bought their first NFTs because they believed in them. While the first simple NFTs evolved into more complex and powerful “smart contracts,” the technical foundation for NFTs made it possible to add utility. “Utility” is something that comes after “ownership.” Utility is anything that can be added to something to make it more useful and, therefore, more valuable. For example, you could give people access to more information about the artwork, like an interview with the artist or a behind-the-scenes film. It could also be interactive, like if you could mix two NFTs together to make a new NFT, and so much more. Some NFT collections, like the Bored Apes Yacht Club, used NFTs as club memberships that gave members access to very exclusive events, concerts, or goods. Some people say that the real value of non-fungible tokens lies in how useful they can be; the options are endless!

Will the value of ART NFTs rise over time like the value of real art?
Over the next few years, it’s likely that NFTs made by well-known artists and luxury brands will become more valuable and can be traded like paintings or other works of art. As the world becomes more digital, things like cryptocurrency and non-fiat currencies are bound to come out of the analog world. So, it will be very interesting to see how digital art and the still-young NFT business grow and change over the next few years.

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