How to explain the NFT you bought to others?

fall! fall! fall! In the Russo-Ukrainian War, it seemed that our various financial asset accounts were bombed by planes and cannons.

The global transaction volume of NFT has dropped to a freezing point. According to the data, the monthly transaction volume of NFT in January 2022 exceeded 4.4 billion US dollars, the average daily transaction volume reached 143 million US dollars, and the number of active buyers reached 908,300 (remove the weight). Active buyers are around 70,000.

In March, as of press time, the average daily transaction volume dropped to 50 million US dollars, and the average daily active buyers were 53,000. The transaction volume has dropped by two-thirds, the number of transactions has dropped by one-quarter, and the global NFT market has indeed faded.

I believe that in the new year of 2022, when this wave of NFT came out of the circle, many new (jiu) people (cai) rushed in. When people who don’t usually use the eth chain flood into the NFT market, they feel bad, because there is a classic saying in investing: buy when no one cares about it, and sell when people are buzzing. Because according to the 80/20 rule, only 20% of the people who can make money in the market will make 80% of the profit.

When NFT is discussed by many people, especially when many newcomers come in, the market will immediately burst into a bubble and burst quickly, so why didn't you post a message to remind fans and friends before. Because at that time the market was hot to buy and make money, and no one listened to the bad guys who warned of risks at that time. Now that the bubble has burst, everyone is deeply stuck. At this time, I will give you an in-depth analysis of NFT and the risks behind it. Everyone I can hear it all. Only when you lose money will you seriously reflect on it, this is human nature!

Let's get back to business, let's talk about what is NFT? And how to explain to our relatives and friends why this little picture is worth so much money!

NFT is the abbreviation of Non-Fungible Token. Here they are disassembled and analyzed, Non-Fungible and Token.

What is Token? I believe anyone who knows the encryption industry will understand what it means. Here I want to emphasize that the core essence of NFT is Token itself, and it cannot be separated from the essence of Token. First of all, only if it is Token can we talk about what the previous NF is. mean. (This is why it is not called NFT in China but should be called digital collection)

Let’s take a look at how we define Non-Fungible. Literally, Non-Fungible and Fungible are opposites. One means indivisible and irreplaceable non-homogeneity, and the other means separable and replaceable homogeneity.

Then the meaning of NFT's literal decomposition and integration is ready to come out. This is an emerging Token form independent of FT. It is indivisible and irreplaceable. It is the only new type of Token on the blockchain that can be traded freely.

So what is the use of this new form of Token? We understand it from the following aspects.

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1. Digital Art Creation

First of all, NFT has become famous in the circle. It comes from overseas digital art auctions. For example, a digital masterpiece by the artist Beeple was sold at a price of nearly 70 million US dollars, and the news suddenly broke the circle.

So what does NFT mean for artistic creation?

It means that they use digital means to permanently fix the works of art on the blockchain, and each work is unique, non-tamperable, and can be traded at any time, and in a sense, it is eternal and eternal. will wear out.

This is obviously an all-round upgrade of the original art form of human society from a technical point of view. From the perspective of artistic creation itself, electronic or digital creation, with the help of various new productivity tools, artists can quickly create digital works .

In terms of transactions, the emergence of NFT is to fully bind the identification, confirmation, and transactions of artworks to blockchain technology in an objective, fair, and just way in the open market anytime, anywhere, and all transaction information is on the chain. It can be verified at any time and cannot be forged.

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2. Virtual image

When it comes to virtual image NFTs, Cryptopunks and Bored Ape Yacht Club have to be mentioned. Head portrait (PFP) NFTs led by punk and BAYC have become popular all over the world in the past year, and are sought after by many overseas and Chinese stars. The price of the floor was fired to 100ETHThe height is beyond the reach of ordinary collectors.

Note: The floor price represents the minimum tradable price of a project, and can also be extended to calculate the total market value of the project (token floor price * total number of tokens = total market value)

What is the value behind the virtual image NFT?

The most important thing is the community identity. For early big blue-chip projects such as punk and BAYC, if you have an avatar, it means that you can show your distinguished status in the web3 world. After a year of vigorous development, small blue chips with a floor price of around 10ETH, such as Doodles, CloneX, and Azuki, have formed a stable second echelon, and a stable consensus group has been formed by the new generation of collectors. There are also a batch of mini-blue chips of Meebits and mfers with a floor price of around 3ETH, which are also core projects in the outer circle that can impact small blue-chip projects.

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3. Virtual space

Virtual space is the key landing scene for the grand narrative of the metaverse, and NFT is currently playing a major role in it. likeDecentraland、SandboxWait for the virtual space to package the plots into NFTs and allow them to be freely traded in the market. Players who own the plots can build their own world in the virtual space, which is highly playable and interactive.

This mode is currently the most close to the metaverse experience, and the final transaction price will be affected by the different sizes of the plots and the popularity of neighbors. Even domestic news broke out that Chinese people who love to speculate in real estate have entered the Metaverse to hoard a large number of plots of land. We must know that in the virtual world, the marginal cost of expanding the territory will be very low, and there is currently no technical means to restrict the expansion of the project side and release new land NFT. At the same time, from the perspective of gameplay, the experience and immersion of the Metaverse are far from reaching the state described by "Top Player", let alone the magnificent space described by the Metaverse itself.

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4. Equity certificate

Similar to the circle culture and identity culture gradually formed by NFT, as an indivisible and unique digital asset, NFT is perfect for binding rights and interests. For example, Adidas issued its Adiverse metaverse pass NFT, and Chinajoy issued ticket NFT. As an equity certificate, NFT can not only screen out core users (die-hard fans) for brands/manufacturers, but also serve as a digital asset for holders to permanently Save it as a souvenir.

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5. Game elements

Game props are most suitable for making NFTs and free trading. Just imagine, the skins you bought with a lot of money in the glory of the king, and even some out-of-print out-of-sale ones can be traded freely when you want to abandon the pit. What a wonderful picture it is to horizontally sync to characters in other games of the same type. This is also the development trend of the game industry from web2 (property asset centralization, dataization, and service) to web3 (property asset decentralization, assetization, and personal ownership), allowing players to be economically active, asset flow accelerated, and even directly Profit (P2E).

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6. Trend culture

As NFT has broken the circle several times, digital art creation has gradually been accepted by mainstream aesthetics, more and more auction houses have joined digital art-themed auctions, and more and more stars in the stylistic circles have joined this wave of digital innovation. Reversely affects the direction of art and trend culture. The digital copyright involved behind NFT is a huge treasure that has a positive impact on the real economy. Whether it is basic light industrial fast-moving consumer goods such as clothing, shoes and hats, or entertainment consumer goods such as movies and games, it will be used by various industries in the future. "Infiltrated" by the NFT image of the head.

Why NFT is popular, you must have read the brief analysis of the above aspects, and you will know it in your heart. After reading this analysis, I believe you can also tell your relatives and friends what NFT is. Compared with the monotonous function of FT, the emergence of NFT is like a "dimensionality reduction blow". From a higher-dimensional perspective, a variety of application ecology is developed, which is naturally more popular than low-dimensional FT. It is the future. It is a trend, and there is still a lot of room for development worth exploring.

The NFT market is still in its infancy, with an average monthly active population of 900,000 at peak compared tolittle fox wallet20 million+ monthly active users are still far away, and the early entry into the encryption market means that there is no need to go into details here, just as the slogan hanging at the bottom of the Niftygateway platform wrote: "We will not stop until 1 billion people collect NFT" .