The difference between NFT and Cryptocurrency. See below

Lovata Andrean

The difference between NFT and Cryptocurrency. See below
The difference between NFT and Cryptocurrency. See below

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 people, especially young investors, due to their practical way of purchasing art. According to various sources, NFTs are digital assets that symbolize physical things such as paintings, music art, in-game items, and short films.

Assets are traded online and can be acquired using cryptocurrency or fiat money. When assets are traded, they can be programmed using software similar to that used to code cryptocurrency assets.

Fungible assets are assets that consist of components that are readily interchangeable. Money is an example. For example, you can exchange a hundred thousand rupiah note for two fifty thousand rupiah notes and keep the same value.

However, if something is not interchangeable, it indicates that this instrument has unique features that make it interchangeable with other tools. NFT is sometimes referred to as a digital transaction procedure that is very limited in scope and is identified by a unique identification number.

NFTs are the “only” asset 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?

What is the difference between Non-Financial Transactions and Cryptocurrencies

As a result of the above definition, you may believe that NFTs are assets like cryptocurrencies. This is not the case; the two assets cannot be considered synonymous. According to the Asia One website, the main difference between NFTs and cryptocurrencies is the term “fungible.”

In other words, they can be traded or exchanged for each other. Additionally, their values ​​are equal; a thousand rupiah is always worth a 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 “fungible” 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 the NFT from being exchanged or compared (hence, non-fungible). For example, an NFT clip is not identical to another NFT 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 Gold for Rp. 943.000.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks