Do you remember all the noise from when Twitter co-founder Jack Dorsey sold his first tweet as an NFT? The NFT was worth up to $3 million dollars. Yes, and it's not just him these days a lot of well-known and wealthy people are owning, buying and selling NFTs.
This might raise a lot of questions in your head such as, “Why are people spending so much on intangible assets?” and “Can NFTs ever become viable business assets?”, to know the answer for these questions it is necessary to understand what NFTs are and how one has been generating income through them.
What is an NFT?
The initials NFT are an abbreviated form for the term, Non-Fungible Tokens. ‘Non- fungible’ in itself means rare or irreplaceable and ‘tokens’ are a word describing digital assets. The non-fungible tokens are rare digital assets that can be owned, sold and traded using digital and physical currency.
What makes an NFT so valuable?
The value of any item increases by how unique it is, the more difficult it is for you to get your hands on the more expensive it becomes. Likewise, NFTs are very rare assets which makes them highly valuable.
Now you might wonder, how does NFT become rare when it is on display on the internet and everything on the internet is accessible. Owing to the same, you might think that it is easy to copy NFTs. Well, you are right.
Yes, digital art can be copied and as a matter of fact they can be copied very easily as well. While it is very easy to have a replica of the exact digital art, what makes an NFT rare and valuable is its ownership. Every NFT is registered under the ownership of a particular person and the ownership is protected by complex block chains which cannot be changed until the sale is confirmed by the owner.
How can you make money through NFTs?
There exist multiple ways to make money through these digital assets. NFTs are a work of art and have similar defining values owing to the factors such as quality, quantity, authenticity and desirability. Owing to these factors, the NFTs have a set amount of digital or physical currency depending on their owner.
The NFTs have a fluctuation in their prices depending on the owner of the product. One of the many benefits that any artist creating NFT has is that he can set a kickback value of a particular percentage for his art through which he can continue to earn from his art no matter when and where it is sold.
Can Entrepreneurs Make Steady Money Through NFTs?
An NFT can be a risky investment due to the uncertainty in its value and varying blockchain complexities. However, an entrepreneur can earn enough money through NFTs by investing in the right piece of art at the right time and reselling it for a higher yet reasonable price.
The three major skills required to earn through NFTs are:
- Game-plan and
- Playing the market