Since the inception of Bitcoin in 2009, the technology of blockchain has evolved above and beyond. In 2022, it has attained way more than what was originally predicted. The technology of blockchain houses any form of digital assets and keeps them secure in an encrypted key. It has the potential to offer value to everything like fiat currencies and artwork in the digital space. Having said that, are more and more people choosing NFT over crypto? Let us discuss this in this article.
Digital currencies have been keeping the stage on fire for three straight years now. Since the lockdown for the Covid-19 was imposed and people began to try their hands on virtual tokens, digital currencies became highly popular. More than the fame, they gained prominence and made many individuals rich in just a few years. However, this year does not seem to be the year for digital currency. Since the start, even the big coins like Ethereum and Bitcoin are facing a bullish trend. On the contrary, NFT over crypto is gaining more prominence. As per a report by, users spend nearly US$ 100 million on non fungible tokens in 2020. But it has increased to a great extent to US$ 22 billion which is nearly 21,9100 percent growth in just one year. Presently, people who are interested are purchasing NFTs on digital avenues like Rarible, OpenSea, and many more.
Both NFTs and digital currencies are lucrative investments. If you believe digital tokens are highly fluctuating, then NFT is surely not your thing. Even though NFTs and digital currencies share the same technology known as the blockchain, they are varied in nature and have diverse values and features. But the latest trading topic is surely the non fungible tokens. Big NFTs sales such as Jack Dorsey, former CEO of Twitter’s tweet, for US$2.9 million and the NFT crypto art of Beeple for US$69 million are creating headlines everywhere. When NFTs are getting recognition like never before, let us see the possibilities of NFT over crypto.
What Are NFTs And How People Invest In Them?
Non-Fungible Tokens portray anything that is unique such as artwork, jewelry, furniture, etc. NFTs basically portray a unique item or an artwork that is eligible to be sold online. They are varied from digital currencies as they cannot be interchanged, but are fungible. However, similar to digital tokens, they can be traded through a blockchain network and all the movement and transactions of NFTs are closely kept in context.
When an item is brought into the NFT space, it receives traceability and private ownership. When somebody purchases the Non-Fungible Token, the ownership of the product shifts, which is, in this case, the private key, that is given to the other person. One thing that makes non fungible tokens unique is their potential to promote the originality of the item. You can sell the similar artwork on social media or any physical platform, but there is a probability it might get duplicated by others. However, on NFTs, the owner of the items stays at the help and the works cannot be copied. It offers owners a choice to brag about the uniqueness they have. Since there is only one real work on NFTs, its value also rises based on the interest and demand.
In recent times, people are using the latest method known as ‘scholarships’ to rent the Non-Fungible Tokens to earn money. These are mainly digital tools, creatures, or skins for games that are much needed to participate. They loan them to players and collect rent.
Why Choose NFT Over Crypto? The Difference
Digital currencies are highly used in regular life. Over the past few years, people are utilizing digital tokens as money that can help them do transactions on a regular basis. On the contrary, even renowned brands are coming forward to adopt digital currency payments. However, NFTs are not this attractive. They are unique so they cannot be traded most often. Most crucially, NFTs cannot be traded for each other like digital currencies. Both NFTs and digital currencies are available via a digital ledger that allows transactions and ownership movements transparent.
As stated earlier, an NFT cannot be traded for another while we can do a similar thing with a digital currency. We can trade a BTC (Bitcoin) to purchase Bitcoin as they carry a similar value. But we cannot do the same with NFTs as the value varies. But because with NFTs one can earn a good amount of money, more people now choose NFT over crypto.
Bitcoin Vs NFT: Who Is The Winner?
Bitcoin highlights the most prominent success of the implementation of the blockchain technology. Yes, Bitcoin emerged as the first digital currency in 2009, creating the way for more digital currencies to arrive. Presently, nearly 80 million people are making investments in Bitcoin and most of them are availing it as a store of value or a choice to trade. BTC is the ideal option for people who wish to avoid tax issues and government regulations. NFT is a segment of the blockchain technology that assembles collectibles on the network so they can be traded easily.
In 2022, Bitcoin still looks to be the winner even after losing its value for three consecutive months. Even though NFTs have some great advancements and features, they are the same as altcoins. More than becoming a store of value, non fungible tokens are developing to be speculative. On the contrary, BTC has actually helped many individuals to become millionaires over the years.
NFT Over Crypto: Conclusions
According to a famous media house, NFTs have been in the market since the mid-2010s. It is just that they received fame recently. The latest buzz around NFTs is solely formed because of the Covid-19 pandemic and the evolution of digital tokens. Just like how we cannot predict what will happen in the digital currency space, the NFT sphere also stays behind the shadow. But one thing is for sure that it will not go away any time soon and more and more people will choose NFT over crypto.