Mintyplex

Mintyplex

Are NFTs really tangible?

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Mintyplex
·Mar 23, 2022·

2 min read

Despite the fact that the NFT concept is being adopted by several people, companies, and organizations around the world as part of other technologies like the Metaverse, and cryptocurrency technology, there are still some persons who think NFTs are a mirage and do not have "real-world" value. Here's a quick dive into helping you understand whether or not NFTs have real-world value.

NFTs are unique pieces of data owned by a person or an entity and stored on a blockchain. Whether this piece of Data is a picture, a video, a tweet, or a music file. It qualifies as an NFT if it is unique and is stored on a blockchain and that is where it gets its value.

NFTs are valuable because they are unique and can then appreciate in value over time. Think of it as classic real estate. Why is buying pieces of land a bit deal? It's because there is a fixed "amount" of land on earth. You can not produce more land and that makes each piece of the landed property unique. Over time, it increases in value as there is more population and more demand generally for landed properties.

Now back to NFTs. Let's say you own an NFT t-shirt and it is worth 6eth. The value of that t-shirt (unlike traditional real-world t-shirts) is not tied to its usefulness but to the fact that you'll never (yes, NEVER) find another copy of it anywhere on the blockchain. This means you are a "verified" owner of that t-shirt. Just as crypto assets grow in price depending on a couple of factors, the worth of your NFT t-shirt can also grow over time. Now this applies to any kind of NFT whether it is digital art or a crypto monkey or a 3D custom iPhone charger design. The value of every NFT is stored on a blockchain and its uniqueness helps retain that value.

 
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