- NFTs are considered as digital art persistent on blockchain, representing ownership of the asset.
- They cannot be exchanged similar to cryptocurrencies.
- Anything which people can think of digitally can be an NFT.
Altcoins or Art?
NFTs are something which have attracted a lot of attention in recent times. If you follow the trends associated with the crypto and NFT market on Twitter, then you must be aware of a post saying ‘NFTs are altcoins with pictures.’ The post was shared by Cobie, a crypto enthusiast with a huge fanbase on the social media platform.
This created a huge debate among the community members. Before we discuss this topic further, people need to know about altcoins. ‘Altcoins’ is a term used for the rest of the cryptocurrencies, except Bitcoin. Basically, they are all the digital assets in the crypto industry.
Cryptocurrency has economic value which comes as a currency or an investment. NFTs on the other hand, have economic as well as non-economic value. For instance, an artist can use the non-fungible tokens to monetize or distribute his/her works.
Major motive of cryptocurrencies was to eliminate the intermediaries available in the payments network. Major difference between crypto assets and NFTs is that they cannot be exchanged with each other like the cryptocurrencies. That’s why the name, non-fungible tokens. Because they are not ‘fungible.’
While crypto assets and NFT both represent the ownership of the holder, they have different use cases. Crypto allows the users to purchase a metaverse land or a virtual painting or art. Here, the art, painting or the metaverse land represents non-fungible tokens, on the other hand, users use crypto to buy these digital assets.
So, does this make Cobie right? Are NFTs Altcoins with pictures. Another NFT personality on Twitter punk6529 agreed with this comment, saying that they are definitely altcoins with pictures.
This statement may appear vague to many, but if we look closely, Cobie is right. Now focus on these words. ‘All the tokens and coins in the cryptocurrency market are considered as Altcoins.’ Now, people should not forget that NFTs are non-fungible tokens persisting on blockchain. So folks can consider these words and associate them with the words of Cobie.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.