We're going to pause for a second and discuss the latest trend that's flooding the internet. No, it's not Bitcoin, and it's definitely not any altcoin you're thinking about right now. It's a three-letter word that's got the big guns shelling out their expensive cash. It's called NFT. So what exactly is this latest NFT craze? Is the NFT another big bubble that's patiently waiting to burst, or does it have the potential to turn into the next big thing in the near future? In this article, you'll learn about NFTs and how to buy an NFT in Dubai, UAE.
NFT stands for non-fungible token. Here's the thing. To understand what NFT really means, we'll try to explain it from a simple point of view. Let's start with the word 'fungible'. A fungible item is something that can be replaced with another item of equal value. For instance, if you were to purchase a red jacket from your favorite online store that had several other exact copies of that jacket you bought, then your jacket is fungible.
However, if Nike made a unique pair of soccer boots for Cristiano Ronaldo and sent it to him, that would mean that he's the only one on planet earth with that specific pair of Nike custom-made soccer boots. This means that the boots are non-replaceable and, therefore, are non-fungible! In other words, they're unique.
What does the word 'token' mean? A token is a tech term for any digital asset registered on the blockchain in a similar way that other cryptocurrencies are stored on a public ledger. The blockchain is a public record that verifies every transaction made to buy or sell a token asset. It bypasses the need for banks to perform this role.
Now, to the entire phrase 'non-fungible token' or NFT for short. An NFT is a unique digital asset that can't be substituted for any other digital asset and is stored on the blockchain for public authentication and verification. The fact that NFTs are registered on the blockchain for the public to see and confirm every transaction made makes them authentic and reliable. This is what adds value to NFTs.
There are thousands of NFTs available in the NFT marketplace today. They vary from minted digital artworks to virtual reality items (e.g. plots of virtual lands) to other forms of media, including music, videos, images, in-game items, sports, and heck, even tweets. Yes, you read that correctly, T-W-E-E-T-S. The CEO of Twitter, Jack Dorsey, sold his first-ever tweet as a non-fungible token that cost almost $3 million. If you think that's insane, Beeple's Everyday jpeg image sold on the NFT marketplace for $69 million! Even the NBA has valued some of its short video clips for a couple of hundred thousand dollars as NFTs. Keep reading to discover how you can also buy NFTs in Dubai, UAE.
Let's face it; not everyone is willing to let go of their cash in exchange for some images, let alone a tweet. You may ask, 'why should anyone spend a huge sum of money buying an NFT image, for example, when they can just screenshot it for free and have it as theirs?' It doesn't work that way, and here's why.
When an NFT is created and 'minted' (in layman term, 'registered'), it becomes stored on the ethereum blockchain (ERC-721 network) as a public ledger. This makes that NFT unchangeable and impossible to alter by any means, including a screenshot. After minting an NFT, it becomes available on the marketplace for purchase by other willing buyers, and it can only be traded on the NFT marketplace. A minted NFT becomes unique and is tracked digitally on the blockchain public ledger, where the seller can also earn royalties.
There are three main reasons why people buy NFTs:
With NFTs, ownership is verified on the blockchain and attributed to the creator or the buyer. Twitter is looking to launch a verified NFT collection tab soon, which will display a user's NFTs and place a verified checkmark on their NFT profile photos should they decide to use it.
Like Pokemon cards and other video game collectibles, NFTs can be collected and used to build a community based on these collections. Communities such as these eventually catch more people's attention, and the demand for these NFT collections increases, and so does the value. Acquired NFT collections can be flipped for higher prices than they were bought.
Human beings love the feeling that comes with being awarded a high social status, especially when it reflects wealth or something with great value. This is no different in the digital space. Owners can store their NFT collections and display them after each purchase to show the price in USD or ETH for social status purposes.
Enough talk about what NFTs are and why people buy them. Where exactly can you buy an NFT in Dubai, UAE? There are several online marketplaces for NFT purchases. However, OpenSea sits at the top of this list compared to other NFT marketplaces like Rarible, CryptoPunks. Nifty Gateway and Binance NFT, to mention a few.
There are a few precautions to note before buying an NFT on OpenSea (or any other NFT marketplace). You need to be aware of the potential risks of buying NFTs. We recommend that you only buy NFT assets you have researched and are confident in their utility value. You also have to know that after purchasing an NFT, if you plan to sell it in the future, you will need another individual buyer interested in that particular NFT. This is unlike the Spot trading marketplace for crypto assets, where you can always buy and sell at any time.
Here's a step-by-step guide on how to buy NFTs on OpenSea in Dubai:
For individuals and businesses in the UAE, you can also anticipate an upcoming NFT marketplace soon to be announced by the NIFTY Souq team.
NFTs are the latest hyped-up technology that's revolutionizing the way human psychology is programmed to value things. Whether or not this space will stand the test of time remains to be discovered. However, we have seen that even celebrities and renowned individuals have embraced NFTs. To jump on the NFT train as a Dubai resident, you will first need to purchase Ethereum cryptocurrency, which we can help you with at Sarafex. Visit Sarafex today to get started.
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