As we discussed previously, an NFT is simply defined as a one-of-a-kind digital, a non-fungible asset that can be used to transfer or store value.
In this article, however, we will look at the reason behind NFTs having value, i.e. why do NFTs have any value?
At first glance, it doesn’t make sense for an NFT to have any value. One could simply take a picture of anything and turn it into an NFT. So why do they have value, and why do some even sell for millions of dollars?
To understand why NFTs have value, we must understand their non-fungibility. Fungible assets can be exchanged for each other and still retain their value. For instance, exchanging a $10 bill for two $5 bills is possible. The two $5 bills still retain the value of the $10 bill and have the same purchasing power.
This isn’t the case for NFTs. Because NFTs are one of a kind, you simply cannot exchange one for another and expect it to keep its value. Every NFT is different and one of a kind and this is the reason NFTs have value.
NFTs are given value because of their uniqueness.
Because of this uniqueness, people interested in digital assets are willing to pay huge sums of money for the privilege of owning a one-of-a-kind asset that has a digital signature of authenticity on it. This is essentially what gives NFTs value: Their uniqueness and one-of-a-kind authenticity.
To recap:
- An NFT is simply defined as a non-fungible and unique digital asset that can be used to store and transfer value, and as a proof of ownership of digital assets.
- NFTs are given value by their uniqueness, i.e. the fact that there cannot be more than one original version of a particular NFT.
- People are willing to pay huge amounts of money for the authenticity factor that NFTs offer.
These one-of-a-kind NFTs can be created on Uniqly.io and can be auctioned on the platform as well!
About Uniqly.io
Uniqly.io — the first marketplace and escrow that allows you to create and trade NFT tokens with the possibility of materializing them in the real world.
Uniqly.io is a Marketplace and Escrow.
Marketplace — We allow our users to trade NFT tokens backed by real-world items. Anyone will be able to create their own unique landing page and list their products created in our generator, or deposited via escrow.
Escrow — We have created a solution that allows you to easily trade all physical products, even those that were not created in our Generator, including clothing, works of art, collectibles, and more.
Materialize and stake NFT tokens.
Materialize NFT — Uniqly.io brings you the possibility to materialize your favorite NFT tokens from outside of our ecosystem, such as Cryptopunks, Hashmasks, SuperRare, and many, many more!
Stake NFT — Some limited NFT collections will be available in exchange for freezing UNIQ tokens for an appropriate period of time, in cooperation with other projects we will create additional mining pools.
