Have you been hesitant to start buying and selling NFTs because of what you’ve been hearing people say about them?
When it comes to NFTs, it can be difficult to separate fact from fiction. It’s possible to make a lot of money from them, but it’s also possible to lose it all. This is why it’s important that you are well-informed about whether or not they’re worth investing in.
If you want to find out about the biggest NFT use cases myths, read on and we’ll tell you what you need to know.
What Are NFTs?
NFT’s, also known as non-fungible tokens, are digital assets whose value is recorded on a blockchain.
A blockchain is a type of distributed ledger technology that records transactions that happen on a network. The great thing about a blockchain is that it is very difficult for hackers to tamper with.
At the same time, the blockchain makes it possible for people to track ownership of digital assets in a way that is transparent for everybody to see.
There are many different forms of NFTs. This includes images, videos, audio, and even 3D animations.
NFT Myths: NFTs Have No Value
Many people say that if an NFT is just a piece of digital art that owners publish online, can’t anybody simply copy it and say it’s their own?
What these people don’t understand is that when somebody sells an asset on a blockchain network, this transaction is permanently recorded onto it. This means that it’s impossible for somebody to return and alter this record of ownership.
If somebody wants to take a screenshot of an NFT and claim it as their own, they can do this. But they’re not going to get very far before they get caught.
There are great marketplaces where people buy and sell NFTs which you can find out about here.
They Are Ruining the Environment
The truth is that some types of blockchains have a bigger carbon footprint than others. Since people use these blockchains to buy and sell NFTs, it’s possible that you’re contributing to the release of fossil fuels by buying them.
NFTs run on the Ethereum network, which does use lots of energy to run. But this blockchain technology is moving in the direction of becoming more energy efficient. In the future, NFTs will not be using very much energy.
People Use Them for Money Laundering
There is lots of research that says that criminals use hard money much more often for money laundering than cryptocurrencies. It’s also important to remember that everything recorded on a blockchain is totally transparent. When people break the law, their actions get recorded in the ledger.
Get Started in Buying and Selling NFTs Today
There are many things that people say about NFTs that simply are not true. By being informed about NFT myths, it’s easy to see that they are powerful assets that are here to stay.
If you want to find out more about NFTs, don’t forget to check out the Investing section of our website. We publish many important articles on this subject.