UK court recognized NFTs as private property, what next?

UK court recognized NFTs as private property, what next?

Cryptocurrency is no longer an alien term. Many investors from across the globe are now trying their luck on this. Both newbies and experienced investors have been able to reap benefits. If you also want to know invest or trade in cryptos then check this official website Bitcoin Profit.

It is also true that along with cryptos various other allied services got attention. One such popular investment model to gain an instant hit is the Non-Fungible tokens. It is also known as NFTs in the investment market.

Understanding NFTs and their varied features

In simple terms, NFT is nothing but real-world objects. These may range from art, music, video games, and much more. To make it easier to understand let us take a real-world example. Assume that you are a painter and you want to gain global attention. Then you can create an NFT for the painting. Once the token is developed, the same can be hosted on an exchange. Art lovers or enthusiasts from across the world can now buy your art form. You gain through the patent of this art form. Additionally, every time this art form is bought or downloaded then you gain from it. This is different from the real-world situation. In such cases, your art form is sold only once. And your gains are also one time.

How is NFT becoming popular?

With the ease of accessibility and backed with technology, NFT has a growing market. There are also many celebrities backing such tokens. A classic example in India is film actor Amitabh Bachchan. He created an NFT token comprising all popular poems of his late father. It was then released to the global market in early March.

What is the key difference between NFT and crypto?

Cryptocurrency as the name suggests has the backing of currency in it. Yes, you heard it right. Cryptos are trade-able with real money. As an investor, you can convert your cryptocurrency into traditional currency. This is possible through buying, selling, or even exchanging.

But the logic works differently for NFTs. again as the name suggests these tokens cannot be exchanged for traditional currency. These tokens cannot trade or do not have backup dollar values. Also, you cannot exchange one NFT for another. Each NFT has a different market value and works differently.

How does this token work?

Every NFT works on the Ethereum blockchain. Not that there is any limitation, but Ethereum has been making steady progress in hosting them.

Today, Ethereum includes both tangible and non-tangible tokens including arts, designer merchandise, etc.

There are also gaming avatars and GIFs that are available on this platform. Celebrities also make tweets an NFT. The Twitter founder has made an NFT of every official tweet from his account. The total worth of these NFTs today is close to 3 million.

Move by UK court on NFTs

Investment experts have thrown mixed opinions on this move. It may not be a ground-breaking decision in the investment market. But then, this move is going to bring positive changes to planning investments.

In early May, the announcement came from US Supreme Court to recognize NFTs as private property. But definitely with a caveat. The private property must not exceed the actual value of the token.

Why this decision?

In Feb this year, there was a report from Lavinia on two major NFT tokens missing. She is the founder of Women in Blockchain talks that theft is reported on 02 NFTs. both these NFTs were listed on the US exchange along with various benefits to users.

Both these tokens allowed users to easily access and create utility points. Investors gain major benefits from reward points and discount on event bookings. The token also allows for a reduction in license charges on various tools and services.

Where can you buy NFTs?

Now that there is clarity on its regulation, let us understand where to buy them.

Most NFTs are listed in major crypto exchanges. You need to first create a digital wallet for buying NFTs. once the wallet is ready you can buy NFT. A key point here is to pay using cryptos that the NFT accepts. Most NFTs today accept both Bitcoin and Ethereum. Once the purchase is complete you can then move the token to your digital wallet. Most popular exchanges take a minimum percentage as transaction charges on every purchase.