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What is the difference between crypto & NFTs?

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martinnura

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Ever since its inception, there has been a lot of debate surrounding cryptocurrency. And with decentralized technology beginning to take over Web 3, a lot of other concepts have been confused for crypto, chief among which are NFTs. Now, while they share a similar background in blockchain, the two are actually worlds apart.

NFTs are often considered to come under the crypto umbrella, and it is true that you need cryptocurrency for transactions in several cases. However, the difference lies in something very simple. Cryptocurrency is currency. NFTs are not. That is, one bitcoin can simply be exchanged for another. But an NFT, say an in-game asset that you would buy on an NFT gaming marketplace, cannot be bartered away like that. Each NFT is unique and its value is subject to intangible benchmarks like popularity or desirability.

So while the two are similar in some regards, there is an important distinction. Crypto is purely economic. NFTs have economic value, of course, but to a growing number of people, they represent so much more.
 
Everygame
What's the economic value of NFT, these boring apes and kitties has 0 economic value.
 
I don't see the point of this NFT thing at all. Of course, maybe this is the future and I just don't understand it, but it seems to me that nothing will come of it
 
It's normal to cannot see the value of this technology while is used only for jpeg monkeys and zombies. But besides that NFT gives you a chance to have something unique like a membership pass.
 
You are correct. Cryptocurrency and NFTs are often associated with each other because they both use blockchain technology, but they serve different purposes.

Cryptocurrency is a digital asset that is designed to work as a medium of exchange, just like traditional currency. It is used to buy and sell goods and services, and its value is determined by market demand and supply.
 
Well, it seems to me that the NFT is already dying, I recently worked for a web design company and they lost a lot of money for a project they had been doing for six months. I can't say exactly what happened, but the most important thing is that this project was about the NFT and it just became irrelevant.
 
Just use the technology for something better than selling images.
 
Another important difference is that while cryptocurrency is fungible, meaning that each unit is interchangeable with another, NFTs are non-fungible, meaning that each one is unique and cannot be replaced by another. This is why NFTs are often used to represent things like collectibles or memorabilia, where the individuality of the item is part of what gives it value.
 
Of course they are different things, because cryptocurrency you can pay for some purchase (conditionally speaking) And nft is a unique token that is not interchangeable, that is, it gives you the right to call this or that photo card your own, or something like that. It is better to read about it in authoritative resources.
 
You've made a great point highlighting the fundamental differences between cryptocurrencies and NFTs. It's crucial to understand that while both utilize blockchain technology, their purposes and uses in the digital world differ significantly. Cryptocurrencies like Bitcoin serve as digital money, inherently fungible, where each unit is the same as every other unit. On the other hand, NFTs (Non-Fungible Tokens) represent ownership of unique items and cannot be exchanged on a one-to-one basis like cryptocurrency. This uniqueness adds a layer of value based on rarity and desirability, which is why NFTs have transcended beyond just being a part of the crypto world into more cultural and artistic realms. Your explanation really helps clarify these concepts for those who might still be confused about how both fit into the broader scope of digital assets.
 
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