NFT market, whose future we will talk about already 29 and 30 November during a hybrid conference NFT SUMMIT 2021 PHYSICAL TO DIGITAL, there is every other bazaar where goods are bought and sold: it is (of course virtual) a place where sellers and buyers meet, and products based on NFT technology are displayed and made available. Buyers / users can buy NFT at a fixed price or bid for it at an auction.
As the NFT market is necessarily digital, there must be a mechanism / algorithm in place that regulates these transactions. This mechanism is called 'smart contracts' - self-executing protocols that facilitate transactions between users. NFT exists in the blockchain that records and authenticates transactions. NFTs are most often stored in the Ethereumalthough other platforms blockchain they also support them.
While some NFT markets are centered around one specific industry (e.g. digital), others offer the entire range of NFT: everything from collectibles from the gaming world to internet domains. NFT is most often made up of digital objects that represent both intangible and tangible assets, such as:
• movies and sports attractions
• collectors' items
• virtual avatars and skins for a video game
• objects of applied art
• or music.
But the form of an NFT can even take a tweet. Twitter co-founder Jack Dorsey sold his first-ever tweet as the NFT for over $ 2,9 million.
NFT buyers also receive exclusive ownership rights. This means that only one specific entity can own a specific NFT token. The unique data of the NFT makes it easy to verify property rights and conduct a credible transaction. The owner (or creator of the work) can also store specific information in tokens, e.g. artists can sign their works of art and their digital signature will be saved forever in NTF metadata.
From registration to monetization
If you've never used the NFT market before, don't worry: the process is extremely simple. Here is a quick step-by-step guide.
1. Register on the NFT platform
2. Choose your preferred digital wallet that will allow you to store your NFT and kryptowaluty. You will likely need to purchase some cryptocurrencies depending on what currencies your NFT provider accepts. You can buy cryptocurrencies with a credit card on platforms like Coinbase, kraken cz Etoro and even PayPal.
3. Find out about NFT's offers, including items sold at a fixed price or put up for auction
4. Bid or buy your chosen NFT item right away
5. If you are bidding at an auction, you will be notified when / if you have been outbid - similar to eBay or Allegro
6. Once the item is purchased, the platform will facilitate the completion of the transaction.
Is it just because you can buy NFT, should you do it?
Investing in NFT is largely a personal decision. If you have the funds, consider this form of investment, especially if the piece you are buying has meaning to you.
But the NFT value is entirely based on how much someone is willing to pay for it. Therefore, it is purely demand, and even a fad, that will dictate your NFT's future, and not any objective indicators (technical or economic) that typically affect stock prices and (at least generally) form the basis of investment demand.
This means that you can resell the NFT for less than you paid for it, or you cannot resell it at all if no one is willing to buy it back from you. Just like with stocks on the capital market or with figurines for strategic games on Allegro.
The NFTs are also subject to capital gains taxes (as when you sell shares at a profit), but the tax systems across countries have not yet developed a uniform practice in this regard. Also, the cryptocurrencies used to purchase NFTs may also be taxed if their value increases.
It is therefore worth looking at the NFT as any other investment: know the market, understand the risks, and if you decide to participate in this market - use common sense.
Professionals and investors operating in this industry will discuss the new opportunities created by the NFT technology, the prospects for its development as well as the methods of risk assessment and conduct on NFT markets during the event organized by lobster hybrid conference NFT SUMMIT 2021 PHYSICAL TO DIGITAL, November 29 and 30.
Participation in the conference was confirmed, among others, by:
- Rahim Blak - Copernic, Mosaico, Sapiency, ☰ Edrone
- Przemysław Gerschmann - Stock Exchange
- Paweł Kuskowski - Entrepreneur in crypto
- Artur Pszczółkowski - Gamerhash
- dr Tomasz R. Smus - Blockchain Alliance
- Marc Taverner - Inatba
- Marek Sobieniecki - New Retail Business, IKEA Group
- Marlene Ronstedt - Streamr Data Coin
- Katarzyna Wabik - Binance
- Grant Blaisdell - Co Founder at Copernic Space and Confirm.
The partners of the event are: Confirm, the Compliance Polska Association, Arte Liberte, Mosaico, Sapiency and the portal Tokeny.pl