Mythbusting NFTs – Round Two

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After publishing our first blog on NFT (non-fungible token) myths, we had lots of interesting comments from people with other things they’d heard about NFTs and crypto. So, as promised we’re here to untangle the truth, and bust some more myths.

It’s only for really techy people

This one is a complete and utter myth in terms of buying and interacting with NFTs. Sure, if you’re creating NFTs or dealing with blockchain then some technical know-how is going to be needed. But if you’re just a fan of NFTs, then very little tech knowledge is needed. For most, all you need is knowledge of the internet, and how to download apps on PC and phone. When it comes to buying NFTs on Terra Virtua you don’t need to know anything about crypto or the blockchain as you can just use your regular credit card details to make purchases. (Note: this isn’t the case with all NFT marketplaces, so as we often advise, please do your own research before committing to anything). 

NFTs are pointless

We sort of covered this one in the first mythbusting blog, when we talked about how you can interact with them, and that NFTs provide proof of ownership. But we’ll also look at it from a different perspective here, and compare it to other digital items that you might buy. Say, for example, you play a popular video game on your phone. We won’t mention names, but perhaps one that rhymes with Mandy Mush…anyway. You play Mandy Mush, and you pay real money to get hints, or extra lives. That money gets you nothing in the real world, except for a sense of satisfaction for beating the game. It’s similar for online games where you pay for skins, or extra perks in a video game. You pay the money, but you don’t actually get anything physical as a result.
Here’s another example, if you pay for a music subscription online, you don’t get to own any of the songs you play or download. A music provider could deny you access at any point and cripple your ability to play your favourite songs. Yet you still do it, because it’s convenient and more cost effective than buying every CD a band produces.
From a user point of view, NFTs aren’t pointless, because you actually get to own the thing you buy. Imagine if you bought a skin for your favourite character in a video game as an NFT. You’d then own that skin, and would be able to trade it with other players. Your very real monetary investment would actually be worth something, because you own something as a result.

Now NFTs are also great for creators. Because every transaction is traced via the blockchain, it means you can build in secondary royalties into the process. Whereas now an artist, musician, author, video game creator etc. can only make money on the initial sale of their product, in the future, they could make money every time that product changed hands. And we’d argue that’s better for everyone, because let’s be honest, creating a video game, writing a song or book, or designing a beautiful piece of art is HARD WORK, and seeing someone else profit from your hard work must be painful. NFTs can help make sure everyone gets a fair cut. 

Crypto isn’t safe

Another half truth. There are unscrupulous people out there who want to take advantage of people’s innocence and lack of experience around crypto and NFTs. But, sadly, this is just as present in the real world as the digital realm. And the only way to combat it in either space is to be cautious and do your research before getting your wallet out, or trusting a stranger. Ultimately, the old adage ‘if it sounds too good to be true, it probably is’ definitely applies here, and we’d recommend taking it slow if you’re brand new to NFTs. Don’t start buying from everywhere and anywhere. Take your time, do some research into the different marketplaces, make sure you understand the lingo, and if in doubt ask or avoid. There are lots of great places to go for help and advice, such as our online communities on Discord and Telegram, so if you have questions, always ask. Better safe than sorry. (Pro tip: for more advice, check out our ‘Dos and Don’ts of Investing in NFTs.’)

NFTs are just a phase

How we wish we had a crystal ball to disprove this one, once and for all. But we don’t, so we admit you have to take it on faith a little bit here. All we can do is highlight the huge growth in the industry in just a few short months, and our commitment to the future of NFTs and digital collectibles. According to a recent article by Forbes, the NFT market has grown 1,785% since the start of 2021 and that’s no small feat. With more and more brands getting involved, we have every confidence that NFTs are here to stay and are only going to get better and more exciting over time. (If you want to hear more about the potential for NFTs in the future, be sure to check out the recent talk our CEO Gary Bracey did on this topic). 

Ultimately, there is so much potential for NFTs, that we have zero doubt that they are here to stay. That’s not to say they won’t change, and usage won’t evolve over time. In fact, we’re certain it will, and are actively pushing for that. What we’re seeing now, in terms of the hype and high prices, is just a natural part of any market’s growth. Just think of the internet, and how early adopters were super excited about it, while others claimed ‘it will never catch on’. It’s safe to say that it caught on, and we firmly believe it will be the same with NFTs, blockchain, and cryptocurrencies. It won’t happen overnight, and it may look different in the future, but it will happen, and if you’re at the forefront of this technological revolution, it means you get to be part of the fun from the start. 

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