10 Things You Never Knew About NFTs And Cryptocurrencies (But Really Need To)

10 Things You Never Knew About NFTs And Cryptocurrencies (But Really Need To)

There are still many things that people don’t know about NFTs and cryptocurrency in general.

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One of the most talked-about technological advancements in the past few years has been the advent of cryptocurrency. Since its initial development in 2007, it has risen to prominence due to its unregulated market and its ability to be used throughout the globe.

Along with the rising importance of Dogecoin and other cryptocurrencies, one of this year’s biggest developments connected to cryptocurrency has been the advent of NFTs, or Non-Fungible Tokens. Revolutionizing the way that artists are able to sell and profit from their work, there are still many things that people don’t know about NFTs and cryptocurrency.

10 NFTs Can Be Any Form Of Art

At their core, NFTs are a bundle of data tied to a token. They exist as a digital representation of a work of art and all of the information that makes up the art. Because of this, they can represent any form of digital art, whether that be a song, video, image, or even a video game.

In addition, NFTs can also be tied to physical art such as paintings or books. For these, they are akin to online representations of these works of art. They can also be versions of things that aren’t traditionally considered art, such as tweets or other social media posts.

9 The Exact Identity Of The Creator Of The First Cryptocurrency Is Unknown

Since the first cryptocurrency database was established, there have been many investigations into the identity of its alleged creator, known as Satoshi Nakamoto. While Nakamoto has sporadically been active in the bitcoin community since he started coding the technology in 2007, very little is known about who he is.

Due to some seemingly misleading statements made by Nakamoto, many people believe that Satoshi Nakamoto may be a pseudonym. While some believe that the real Nakamoto is a Japanese American man residing in California, other suspects have ranged from the creator of Silk Road to one of Twitter’s most chaotic users, Elon Musk.

8 Anyone Can Mine For Bitcoin – If They Have The Funds

One of the main appealing aspects of Bitcoin is that, in theory, anyone with a computer and a stable internet connection has the ability to mine for the cryptocurrency. With no physical version, Bitcoin is created by and maintained through complex sequences of code that, when run by computers, allow users to generate Bitcoin.

However, mining for Bitcoin requires quite a bit of both time and money. Due to the massive amounts of power needed and the cost of mining hardware, it is estimated that mining for 1 Bitcoin could currently cost between $7,000-11,000.

7 NFTs Are Apart Of The Ethereum Blockchain

The most-used form of blockchain technology in the world, Ethereum and its native cryptocurrency Ether have shaken up the cryptocurrency world. With a focus on validating holdings via proof of stake methods, Ethereum hosts NFTs as well as facilitates their sales through various online auctions.

A blockchain technology known for its safety and security, Ethereum provides safe and secure transactions that are protected against fraud or interference by a third party, making it the perfect platform to support NFTs.

6 Many Major Retailers Accept Cryptocurrency As A Form Of Payment

While many were initially resistant to the idea of cryptocurrencies, as they are much more unstable when compared other forms of currency, some major players have begun to see cryptocurrency in a more positive light. The past few years have seen many companies start to embrace cryptocurrencies as legitimate forms of payment. In addition, companies such as Apple have been rumored to be developing their own form of cryptocurrency.

Companies such as Microsoft, PayPal, Whole Foods, and Home Depot offer services that allow customers to purchase items and make payments with cryptocurrency. In addition, movie theaters have experimented with allowing guests to purchase tickets for movies, starting with the 2015 film Dope.

5 Cryptocurrencies Are Not Controlled By An Authoritative Body

Being a currency created by individuals and maintained by sequences of code, cryptocurrency is the lone type of currency that is not controlled by an authoritative or governmental body. That may change soon, as some countries are starting to develop their own cryptocurrencies.

Lack of authoritative oversight has been one of the most-discussed issues pertaining to cryptocurrency. While this differentiates itself from other forms of currency by giving the technology a strong entrepreneurial spirit, it has also led to the wildly volatile market.

4 Many Cryptocurrencies Can’t Be Spent More Than Once Or Refunded

Another thing that differentiates cryptocurrency from other forms of payment is that many cryptocurrencies such as Bitcoin do not allow for their coins to be refunded or used more than once. Double-spending is only possible through theft and is considered fraud.

Similar to counterfeit money, double-spending is cracked down upon due to the potential inflation that it could cause. Seeing as there are a finite amount of crypto coins, many cryptocurrency exchange platforms such as Coinbase have cracked down on this practice.

3 NFTs Make It Easier For Artists To Profit From Their Work

For years, many artists have struggled with getting profits from their works, with many of them losing out on profits due to unauthorized uses of their art. However, artists have been able to work around this issue by tokenizing their works and selling them as NFTs.

By creating a specific token for each of their works, the artist can control who they sell their art to, as well as who might be able to use it in the future.

2 Bitcoin Mining Consumes A Massive Amount Of Energy

While many have said that cryptocurrency is more beneficial to the environment than physical money due to its lack of a physical form, others have argued against this claim. This is because of the massive amounts of energy used by some cryptocurrencies, most notably in the process of mining for Bitcoin.

A process that could last anywhere from 10 minutes up to a few years, Bitcoin mining consumes a massive amount of energy and thus leads to environmental pollution. Bitcoin mining has led to an increase of over 40 million tons of CO2 emissions, the equivalent of 8.9 million cars, according to Bank of America.

1 The Federal Reserve Is Developing A Form Of Digital Currency

Initially resistant to the use of cryptocurrencies, the United States Federal Reserve announced in May that it will begin developing its own digital currency. Theorized to be a third form of digital currency that will exist as a tokenized version of the United States dollar, the currency is currently being referred to as CBDC, or Central Bank Digital Currency.

With a few other countries mulling this idea, this shows the influence that cryptocurrency has in the economic world. While it wouldn’t exactly be cryptocurrency, this new form of digital currency would share some of the same characteristics.

Link Source : https://screenrant.com/most-important-nft-cryptocurrency-facts-need-know/

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