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NFTs: What, Why and How to Buy

By January 24, 2022January 25th, 2022No Comments

NFTs rocked investing in 2021 by sending art buyers virtual.

Love them or hate them (or just curious about them) NFTs made headlines while drawing $250,000,000 into the asset market in 2021. As a disclaimer, TruCash partners with companies like Hard Rock and Veteran Services USA to produce collectible NFT programs. Also, read up on NFT investment risks before you spend. Now, read on to see if an NFT future is for you:

What’s an NFT?

An NFT, or non-fungible token, describes a single virtual object. Its uniqueness comes from its place on a Blockchain, or a database networked between cooperating computers. Blockchain technology is touted as revolutionary for its potential to replace traditional, centralized institutions (like banks). This is why cryptocurrencies working on blockchains operate “decentralized.” For example, if someone buys a Bored Ape Yacht Club painting for $200,000, then only the buyer (in this case, rapper Future) owns the painting’s unique virtual location.

Now, you may wonder, “Can’t I save the NFT image onto my computer? Won’t I then ‘own’ the NFT?” No, you only own a copy of the NFT. It’s like owning a $20 copy of Da Vinci’s The Vitruvian Man—it might look the same, but it’s far from the original!

TruCash partners with companies to create collectible NFTs. On the left is a Bored Ape Yacht Club painting.

Why do people want NFTs?

Apart from the Cool Factor, NFT investors hope their digital assets will grow in value in the long-term. This is plausible, as global communities spend more time gaming and socializing in immersive online worlds. We saw in 2021, for example, Facebook CEO Mark Zuckerberg make a declaration to shift his company’s focus to the Metaverse. NFT investors view this and other technological developments as signals that NFTs will grow in popularity and usefulness over time. In turn, their investments may become more valuable.

In the short-term, this could mean decorating virtual rooms with Bored Ape paintings or gaining access to unique virtual spaces using an NFT blockchain key—investors will wait to see. For now, NFT buying is a popular fad that brings attention to its buyers and funds to its sellers.

The next platform and medium will be even more immersive, an embodied internet where you’re in the experience, not just looking at it, and we call this the metaverse.

Facebook CEO Mark Zuckerberg

How do I buy an NFT?

So, you’re ready to take the next step. Firstly, look into the possibilities of receiving collectible NFTs for enrolling in programs or attending events. This will save you money if you feel uncertain about investing long-term. Secondly, visit online resources to learn more about the purchasing process and the myriad risks involved. Thirdly, if still interested, identify how your home country sponsors NFT purchases. For example, Canadians need to trade dollars for cryptocurrency and then purchase the NFT from a merchant using crypto. Fourthly, hold on for a volatile ride!

Contact us to build your loyalty program (NFTs optional) today.