The difference between NFT and Cryptocurrency Check Out the Following
Rancakmedia.com – Let's get to know non-fungible tokens or NFTs, and how they differ from cryptocurrencies. Indeed, NFT is a form of digital asset that is starting to become popular among business people.
NFTs have been in operation since 2014 and are gaining traction among many, especially young investors, for their practical way of buying art. According to various sources, NFTs are digital assets that represent physical things such as paintings, musical art, in-game items and short films.
Assets are traded online and can be obtained using cryptocurrencies or fiat money. When assets are traded, they can be programmed using software similar to that used to code cryptocurrency assets.
Exchangeable assets are assets that consist of components that are readily exchangeable. Money is an example. For example, you can exchange a one hundred thousand rupiah note for two fifty thousand rupiah bills and keep the value the same.
However, if something is not interchangeable, it indicates that this instrument has unique features that make it interchangeable with other tools. NFTs are sometimes referred to as digital transaction procedures which are very limited in scope and are identified by a unique identification number.
NFTs are “the only” assets in the digital world that can be bought and sold like any other type of property, despite the fact that they have no physical existence. Consider digital tokens as certificates of ownership for virtual or tangible assets.
What is the difference between NFT and Cryptocurrency?
As a result of the definitions above, you might believe that NFTs are assets like cryptocurrencies. This is not the case; the two assets cannot be considered synonymous. According to the website Asia One, the main difference between NFTs and cryptocurrencies is the term “fungible.”
In other words, they can be traded or exchanged with each other. Other than that, their value is equivalent; one thousand rupiah is always worth one thousand rupiah, and one Bitcoin is always worth one Bitcoin.
Due to its crypto equivalence, it is a reliable instrument for carrying out blockchain transactions. The term "equivalent" refers to goods that can be exchanged for other goods of equal value.
NFTs, on the other hand, are unique. Each has a digital signature that prevents NFTs from being exchanged or compared (hence, non-fungible). For example, clip NFTs are not identical to other NFTs simply because they are both NFTs.
Moreover, their goals are different. When you buy cryptocurrency, you are essentially exchanging currency the same way you would at a money changer. For example, buying 1 gram of Antam's gold costs Rp. 943,000.
