Hey visitors, welcome to Market Money. Here we know about NFTs vs. cryptocurrency vs. digital Currency, hope you listen to these names anywhere; if not, then read carefully this article to know in detail.
What are NFTs?
- 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, they can’t be exchanged or replaced for one another
- Transactions occur on a blockchain which is written in a digital ledger, and publicly records each NFT transaction
- Sold in collaboration with auction houses or in MFT marketplaces
- NFT creators have the copyright to the item and can make copies of it. However, the NFT buyer needs the 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 are recorded in a public ledger
- Referred to as tokens, – allow users to trade for products or services
- Users need to exchange real currency for cryptocurrency to purchase product or service
- Popular cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Tether
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What is Digital Currency?
- Electric format of physical currency
- Stored in a digital wallet
- Users can turn digital currency into physical currency by withdrawing from a bank or ATM.
- They 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 🙂
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