In the last few months, almost every newspaper, website or magazine has published an article titled something like this: “Is WTF an NFT?” Short for Non-Fungible Tokens, NFTs have taken the world of art, music, and social media by storm. NFTs represent unique digital elements whose metadata is stored on a chain of blocks.

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These NFTs are used to authenticate a variety of digital files, including images, videos, songs, and even Tweets. Instead of physical art, more and more wealthy investors are transferring their funds to cryptocurrencies and then depositing large sums of money in NFT. This raises a vital question that Redditors are trying to answer: what’s so great about NFTs?

10 Explaining NFTs to Outsiders is an Impossible Task

Someone holding their cell phone camera in front of the Mona Lisa painting

It’s art? Are they data? Are both? Why would anyone want to spend money on an NFT? These are the kinds of questions that crypto experts answer to outsiders, who find it very difficult to explain the ins and outs of making, authenticating, buying, and then storing NFT.

This is compounded by the fact that blockchains, which store cryptocurrency transactions and NFT metadata, are also mind-boggling for novice users. One proponent of the Ethereum blockchain went so far as to develop an easier to use app which allows people to collect NFT art and get closer to the details present in each piece.

9 Whether or not copycats are after NFT assets is on the other side of the point

Ethereum's blockclain logo surrounded by Bitcoin

Another question that outsiders regularly ask about NFTs is: “Why can’t people just duplicate someone’s digital asset, claim it’s their original work, and then resell it?” According to some experts NFT Redditors, this type of question is beside the point.

People can steal or copy a digital file ad infinitum, but NFTs, as the name suggests, are not replaceable or interchangeable. The only copy of an NFT that matters is the one with its own hash, or metadata, stored on the blockchain, and this unique marker guarantees the authenticity of the original file.

8 Artists must promote their NFTs

A person drawing a picture on a 2-in-1 laptop with a stylus

Content creators can’t expect to upload some digital files to an online gallery and get rich quick. In order for someone’s NFTs to become a valuable cryptocurrency asset, they need to be properly traded.

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There are some fantastic crowdsourcing efforts to make sure counterfeits are eliminated, such as reverse image searches. Legitimate artists trying to establish themselves should focus on the validity of their NFTs as investors are more likely to buy verified files.

7 This is because it all comes down to a name game

A close-up of Grimes in one of his music videos.

Unfortunately, like other investment communities, famous people are very more likely to sell NFT than not famous people. Case in point: Grimes, the artist who happens to be Elon Musk’s partner, made millions in just a few minutes selling crypto-punk NFT.

A video of Lebron James making a dunk sold for $ 208,000. This shows that investors are looking for recognizable pieces from recognizable names that, in theory, will accumulate value over time.

6 Which NFTs the highest bidders collect has less to do with aesthetics and more to do with numbers

A cell phone showing Bitcoin sales.

The fact that Christie’s auction house recently sold an NFT collage made by a digital artist named Beeple for $ 70 million indicates that big spenders are willing to invest their wealth in these speculative ventures. Some Redditors hypothesize that these initial investors are much less interested in what a piece looks like and much more interested in its monetary value.

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Since the future of NFTs is yet to be determined, these investors are choosing the NFTs they believe the most economically beneficial overtime. They hope that some of that value is due to the fact that they are buying an early NFT sample.

5 NFTs are smart investments

A person who controls investments in his cell phone.

Whether you’re a manufacturer, a buyer, or both, some NFT advocates think your future is hopeful. Since it is such a new concept, and since cryptocurrency is not yet widely used, NFTs are getting a bad rap too early in their development.

One Redditor details why it’s important for NFT artists to spend the money to properly authenticate their digital files: a process called minting. If more and more emerging creatives use these online NFT markets to revolutionize the way art is shared and experienced, NFTs will become an even more attractive market for investors.

4 On the contrary, maybe they are just a fad that will disappear like Cryptokitties

A drawing of the collectible digital cats from the game Cryptokitties.

On the other hand, not everyone on Reddit is convinced that NFTs have lasting power. One user even compares them to the Ethereum CryptoKitties blockchain game, which took off quickly and then just as quickly fell into obscurity a few years ago.

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Why the poor prospects for NFTs? Apparently, this form of “ownership” of digital art is too complicated and unsustainable.

3 Most people will not get any value from NFTs

A close-up of the code on a computer monitor

Continuing this line of thinking, the average internet user, even someone who can dabble in cryptocurrencies a bit, has nothing to gain from NFTs. Those hoping to quickly upload a file to digital marketplaces like OpenSea and then become millionaires will be very, very disappointed.

Creating and doing NFT requires attention to detail, time, and knowledge of how crypto communities work. Normal people are likely to be overwhelmed, scared, or completely confused by the prospect of getting started.

two The inherent value of digital art is very different from physical art

A woman taking a photo in an art gallery on her cell phone

Other in progress debate between Redditers discusses the differences between physical art and digital art. Many collectors and investors enjoy not only acquiring expensive pieces, but being able to physically interact with them by hanging or displaying them.

NFT investors do not interact with the digital files they acquire in the same way. This can be a major hurdle for the NFT community, requiring a lot of creative application engineering.

one The implications for the gaming world could be huge

A man with a virtual reality headset.

If NFTs take off, gamers could see how they play, buy and create irrevocably altered worlds. Both game developers and gamers could one day use NFT markets to exchange game-ready digital assets such as weapons.

These assets will not only add new creative possibilities to the game; its status as NFT it will put them on investors’ radars. Regardless of what happens, many people think big about NFTs.

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