The Significant Value of NFTs Compared to Equivalent Traditional Financial Instruments

For decades, the finance and investment world has been the prime focus of human beings as they try to keep up with the most lucrative asset on the market. The financial system is designed to create an illusion of a bog dog or a unicorn that everyone needs to own at that particular moment. Financial instruments are contracts for tradable assets that can be modified and purchased. The basis of these transactions is money, where one instrument is traded for cash. For instance, when one needs to buy shares, you will give some money worth the shares you will receive in return. Traditional financial instruments include securities, bonds, real estate, and cheques. However, the 21st century has seen a myriad of changes in the financial world and a sudden surge in technological advancements in fields such as mobile payments and blockchain databases. How Do NFTs Work? To understand this concept, we need first to understand the meaning of fungible. A Fungible asset is anything that can be exchanged or traded for another asset of the same value. For instance, it is easy to acquire another dollar. Non-fungible, therefore, means that the asset is unique. It cannot be exchanged for any other asset that may be similar to it. The rarity of the asset gives it value in the market.NFTs were not originally designed to be financial instruments; they were often disregarded. They are codes representing an asset stored on a blockchain. The blockchain ...