Why do NFTs attract so much money?
Digital art has existed for decades; we will think of it before and after NFTs.
The non-fungible tokens are unique digital objects based on blockchain technology (same as Bitcoin). Cryptography is used through a network of devices to create them. Now, we use this technology to commerce digital art. Why is this new art attracting so much money?
- Investments: Duty-free art deposits in free zones such as Ginebra, Singapore, or Delaware have made art one of the most used ways to avoid taxes and accumulate wealth, and NFTs seem to evolve this trend, primarily due to its high volatility and the possibility of saving so as not to have to declare realized profits.
- Security: Like traditional art, anybody could try to copy the original art, but tokens ensure there will be just one owner. Plus, blockchain technology makes it difficult to steal these tokens. Additionally, the buyer enjoys confidentiality.
- Liquidity: These assets are more straightforward to trade than conventional art. The secondary market has many movements due to the recent interest in growing technology companies that have been in the last two years.
Many NFTs or even cryptocurrencies projects fail to persist. Still, an exciting conclusion is that blockchain technology not only does not perish but evolves, and proof of this is the NFTs. Blockchain has arrived to stay.
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