Hey Visitors welcome to Market Money. here we know about NFTs Vs Cryptocurrency Vs Digital Currency, hope you listen this names anywhere if not then read carefully this article to know in details.
What are NFTs?
Table of Contents
- NFT stands for Non-Fungible Tokens
- These are unique digital assets representing real world items
- Could be in audio, video, photo or document format
- Bought and sold online, and managed in a digital ledger
- Aren’t mutually interchangeable, hence can’t be exchanged or replaced for one another
- Transactions occur on a blockchain which are written in digital ledger, and publicly records each NFT transaction
- Sold in collaboration with auction houses or in MFT marketplaces
- NFT creator has copyright of the item and can make copies of the same. However, NFT buyer needs creator’s permission to make copies of the same.
What is Cryptocurrency?
- Encrypted from of digital currency
- Doesn’t need financial institutions to verify transactions
- Stored in a digital wallet
- Transactions occur on a blockchain and recorded in a public ledger
- Referred to as tokens – allows users to trade for product or services
- Users need to exchange real currency for cryptocurrency to purchase product or service
- Popular cryptocurrencies: Bitcoin, Ethereum, Litecoin, Tether
What is Digital Currency?
- Electric format of physical currency
- Stored in a digital wallet
- User can turn digital currency into physical currency by withdrawal from bank/Atm
- Can be exchanged for each other
- Can be done from anywhere in the world
Basic Differences
| NFTs | Cryptocurrency | Digital Currency | |
| Example | PM Lee’s “Creator coin” on Bitcoin | BitCoin (BTC), Ethereum (ETH) | China Digital Yuan |
| Regulated or Unregulated | Unregulated | Unregulated | Regulated by government or central financial institution |
| How is the value determined | Depends on asset value | Depends on market fluctuation | Tied to real-world currency value |
| Volatility | Unstable | Unstable | Unstable |
| Tradeable or not | Can’t be traded for each other | Can’t be traded | Can’t be traded |
| Transparency | Transparent | Transparent | Not Transparent |
Which interests you more? (comment below 🙂