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Mythbusting NFTs

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Welcome to another blog in our NFT Newbie series. Odds are that if you’re reading this (and haven’t been living under a rock for the past six months), you’ve heard of Non Fungible Tokens (a.k.a NFTs). But hearing about them, and understanding them are two very different things.

And the truth is that there’s a lot of chatter out there about crypto and Non Fungible Tokens which isn’t entirely true, so we’re here to bust some myths, and demystify the latest innovation in collectibles. 

Top tip: if you’re totally new to NFTs (i.e. you’re not sure what NFT stands for, or what they actually are) we’d suggest heading over to our ‘What’s an NFT?‘ and ‘NFT Dictionary‘ blogs, where you can find out all the basics and get your head around this new world. Then, when you’re ready, come back here and find out why half of what you’ve heard about NFTs isn’t even true. 

Top 5 NFT Myths – BUSTED

 

1. You can’t do anything with them

We love it when people discover how untrue this one is, because once you start playing with your NFTs you’ll be hooked. At Terra Virtua we have purposely integrated all kinds of cool ways to interact with your NFTs, including using augmented reality, virtual reality, and our exclusive Fancave, Terradome, and Gallery apps. Just check out our social media and online communities to see some awesome examples of people interacting with their NFTs in all kinds of fun ways. 

It should be said, though, that not all NFTs or marketplaces have this level of functionality, so there is some truth to this statement. You can’t, for example, do much with an NFT version of a tweet. But that’s why exploring the whole NFT ecosystem is so important. Not all NFTs are created equal, so whether you’re someone who likes playing around with their collectibles, or just wants to know you have them, be sure to have a look around to see what’s on offer before you buy. 

2. They’re expensive

OK, we’ll grant you that $69 million for an NFT piece of art is pretty expensive. But, as with all collectibles, there are different levels and costs depending on what you buy, when you buy, and where you buy from. 

Terra Virtua is packed full of loads of different kinds of collectibles priced from $12 upwards, so we promise that NFTs don’t have to be expensive (pro tip: unlike other NFT marketplaces, with Terra Virtua you can choose to pay with your regular credit card. So not only is it affordable, but you don’t need to be a crypto investor to get involved). If you’re a hardcore collector who likes the rare stuff, you will naturally pay more. But if you’re a casual fan of Top Gun, Godzilla, Pacific Rim, or any of the other ranges available at Terra Virtua, you can get your hands on some amazing collectibles for way less than you’d think. 

Ultimately, if you’re new to the NFT space, we recommend only buying what you can afford, and things you actually want. Trust us, you’ll find there are plenty of options for all kinds of budgets once you start exploring. 

3. It’s just a digital file, anyone can use it

This one is another half truth. Yes, it is a digital file. Yes technically anyone can share a copy for it to be viewed online. BUT…the benefit of buying an NFT is that there is undeniable proof of ownership of what you buy. 

We admit this one can be a bit tricky to get your head around at first, so we’ll use an analogy to help explain. Think of Van Gough’s Sunflowers painting. There is only one in the world. So whoever has that is pretty darn lucky (currently that is the National Gallery in London). 

However, there are thousands (possibly millions) of prints, screenshots, and images of this unique artwork all over the world that people can look at and enjoy. That is essentially what’s also happening in the digital world of NFTs. One person will own a 1 of 1 NFT. But lots of people can look at it. 

The only difference is that with NFTs the ownership can be proven, yet with physical products, there’s no way to categorically prove ownership. Sure the National Gallery is pretty sure it has the original artwork, but this can never be 100% proven, not in the same way NFT ownership can. (By the way, we’re definitely not saying the one in the National Gallery is a fake, it’s purely hypothetical!)

Another example is designer goods; only a limited amount of official handbags/shoes/sunglasses get made but there are plenty of fakes out there, so while you might be confident you’ve got an original, you can’t always be sure. 

With NFTs, because every transaction is 100% traceable via the blockchain, you can be sure that you’re the owner of something and how many there are in the world, and that’s what makes them valuable. Because when you own 1 of only 10 Godzilla animated models, you can make a mint if you ever decide to sell. 

4. NFT artwork and collectibles aren’t even that good

Not so much a myth as a personal taste kind of deal. Just as art in the physical world can divide opinions, so too can cryptoart and other collectibles. Ask 100 people their thoughts on an artwork by Damien Hirst, and you’ll get a 100 different opinions. Ask the same question about Beeple’s work and it’ll be the exact same. 

That is kind of the point of art, after all, it’s supposed to be subjective and up to interpretation. And we’d say this applies to all digital collectibles, whether that’s ‘pure art’, models, music, writing, videos. 

Ultimately it comes down to what you find appealing. Love Top Gun, but just don’t get Godzilla vs Kong? Then you’re probably going to love a Top Gun helmet but probably not going to want to add a full size Godzilla to your Terradom. 

Adore artwork with beautiful birds? Then our artist Femiki is probably right up your alley. But not a fan of horror-inspired art? Then Nick Percival’s work is perhaps not for you. 

As with physical art and collectibles, there is soooo much variety out there, that if you can’t find something that appeals to you, we’d be very surprised. 

5. People just buy NFTs to make a quick buck

This is another half truth. Yes, there are people who buy up NFTs early with the intention of selling them on for profit, but that’s not the whole story. 

Firstly, we’d like to point out that there’s nothing wrong with this (assuming no one is taking advantage of anyone), and that speculative buying and trading is also super common in the physical art and collectible space. You get experts in all kinds of areas buying up products to sell them on, just think of property developers, stock brokers, art collectors. It happens all the time in the physical world, so it’s no big deal that a similar model exists in NFTs.  

However, we’d also argue that overall, these folks are in the minority. The main bulk of our community at Terra Virtua are people who are fans of what they’re buying. We’ve got huge Godzilla and Kong fans who have bought the entire collection of models with zero intention of ever selling them on. They simply bought them because they thought they were awesome.  

It’s the same with art; lots of our collectors just absolutely love the art available and want to have it hanging up in their virtual gallery to enjoy, just as an art collector in the real world would. 

So yeah, there are traders who want to make money. There are collectors who want to own things and build complete sets. And then there are fans, who just want to own a little part of their favourite movie, comic, band, artist’s work and show off to their friends. 

The cool part is, it’s completely up to you how you get involved. 

That’s our top 5 NFT myths busted, but we know there are more. So if you’ve heard something about NFTs that you’re not sure is true or not, pop a comment down below or hit us up on social media and we’ll help unpick fact from fiction. 

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