Why have NFT coins become something to watch closely? Is it really just a temporary bubble?

In recent years, NFT coins have become a highly discussed and debated topic within the crypto community. Some see them as a revolution in the world of art and collectibles, while others view them as just a price bubble similar to the Tulip Mania of the 17th century. However, the truth may be more complex than both perspectives.

What Capabilities Do NFT Coins Have?

Looking back at key events, we find that NFTs have been applied across various fields, from concert tickets to luxury fashion items. For example, NFT event tickets can effectively prevent counterfeiting and hacking because recording on the blockchain makes data tampering impossible. There are also renowned projects like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) that have created incredible value for owners. Meanwhile, Parallel Alpha is an NFT card game where players can compete with decks they assemble themselves. In Thailand, interesting projects like THAI GHOST, BitToonDAO, and 3Landers have gained international recognition.

What Exactly Are NFT Coins?

At their core, NFT or Non-Fungible Token is a digital asset built on blockchain technology, characterized by its uniqueness and non-interchangeability. This differs from common cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis.

NFTs have four prominent features:

1. Truly Digital Assets - Whether it’s an image, sound, video, or document, all must be stored on the blockchain.

2. Operate on Specific Blockchain Networks - NFTs created on Ethereum cannot be used on Bitcoin, as each blockchain has its own system.

3. Highly Unique - Each NFT coin is a one-of-a-kind item in the world and cannot be replaced by another.

4. Indivisible - Unlike Bitcoin, which can be divided into smaller units, NFTs must be a whole piece.

Differences Between NFTs and Digital Currencies

If I borrow 100 Baht from you, you won’t care which 100 Baht banknote you receive because all bills are equal in value. This is a characteristic of Fungible assets.

In contrast, NFTs are non-fungible and cannot be exchanged on a one-to-one basis, similar to how two paintings cannot be truly identical. Many people mistakenly think NFTs are just files that can be duplicated endlessly, but this is a misunderstanding. An NFT is a digital ownership certificate recorded permanently on the blockchain, not the original file itself.

How to Create Your Own NFT

If you’re interested in creating an NFT yourself, here are the steps:

Step 1: Prepare Your Work - Decide what you want to turn into an NFT, whether it’s digital art, music, videos, or other content. Ensure that it’s your original work with proper rights.

Step 2: Choose a Blockchain - Popular blockchains for NFTs include Ethereum, Solana, and Flow, each with its own community and applications.

Step 3: Set Up a Digital Wallet - You will need a wallet that supports your chosen blockchain, such as MetaMask, to store your NFTs.

Step 4: Select a Marketplace Platform - Various platforms allow you to create and sell NFTs. These platforms typically charge a transaction fee, usually around 2-2.5% of the sale price.

Step 5: Upload and Configure - Upload your work, set the price, details, and sales conditions. Be prepared to pay a gas fee (Gas Fee), which can range from $20 and up depending on the network.

Step 6: List for Sale - Once everything is ready, click “Sell” and wait for buyers to make offers or purchase immediately.

Benefits of Investing in NFTs

Although the NFT market is still new, it offers many advantages that make it attractive:

Uniqueness - Digital files can become one-of-a-kind assets. For example, Jack Dorsey’s first tweet sold for $2.9 million.

Authenticity Verification - NFTs make it easier to verify the originality of artworks without expert intervention.

Security - Blockchain ensures that NFT data cannot be altered or deleted, allowing the work to persist forever.

Versatility - NFTs can be programmed to operate automatically, such as paying royalties to original artists upon resale.

Risks to Be Aware Of

However, there are several risks to consider before investing:

Uncertain Valuation - NFT prices depend entirely on buyer demand; there are no fundamental valuation methods.

Counterfeiting Risks - While NFTs themselves are non-fungible, the original files may be copies or forgeries.

Hacking Risks - Your digital wallet can be hacked, leading to loss of assets, similar to other cryptocurrencies.

Tax and Regulatory Issues - In the future, NFT transactions may be taxed, and regulations are still evolving.

Capabilities of NFTs in Various Fields

Event Tickets - NFTs help prevent counterfeiting and allow immediate verification of authenticity, enabling secure resale markets.

Luxury Fashion Items - They can easily prove authenticity and tell the story of the product, origin, and sustainable development.

Collectibles - Digital collectibles become scarce and valuable, similar to physical art.

Game Items - Players can truly own rare in-game items and trade them.

Smart Investment in NFTs

If you’re interested in investing, keep in mind:

Verify Sellers - Look for verified badges on platforms and review their sales history.

Calculate Total Costs - Besides the NFT price, account for gas fees and platform commissions.

Choose Items You Believe Have Value - Don’t be driven solely by hype; trust your judgment.

Invest Only What You Can Lose - Allocate funds that won’t impact your life if lost.

Study Licensing Carefully - Review licensing agreements to understand what rights you acquire.

The Future of NFTs

The NFT market is still evolving and developing. Whether this industry will grow or decline in the future, all transaction data and history on the blockchain will remain forever because this system does not allow data to be altered or deleted.

Therefore, even if a physical painting or artwork deteriorates over time, its NFT will remain intact forever.

Summary

NFTs have both potential and risks. Investing should be done with full awareness that it is high-risk, high-reward. The most important thing is to understand what you are investing in, choose works you truly believe in, and always diversify your investment portfolio. NFTs could be the future of digital ownership or just an interesting moment in technological history—how we utilize it will determine its ultimate impact.