NFT: Non-fungible token. It is a token used to represent an item’s property. The “tokenization” of daily household essentials to priceless works of art is used to purchase wants and needs via a token. The term “non-fungible” means that it cannot be exchanged with anything else because it has unique characteristics. The term “fungible” has no distinguishing characteristics and is defined only by their value; therefore, they can be exchanged. At the same time, NFTs cannot be traded as they are specific to the ownership of designated items d. Due to the digital transformations in the financial world, most of us would consider NFTs and cryptocurrencies alike; However, that is not the case. NFTs are built using programs such as Bitcoin or Ethereum, their only similarity. Also, the physical dollar is changeable as a cryptocurrency, while NFTs are not.
With the world becoming more familiar with digital transformation, there are several terms that we all eventually need to gain a thorough understanding of how they work and what they mean. NFT is one of those abbreviations that most of those who are not advanced in the financial world may need an explanation of what these letters mean. And before we learn about Dr. Yasam Ayavefe’s views on NFT and cryptocurrency, receiving a brief description of the subject will benefit us all.
NFTs have the potential to become a one-time hit, which benefits global economic conditions. As Dr. Yasam Ayavefe taught us:
“The exponential increase in the popularity of NFTs demonstrates the unpredictability of acceptance of new technologies. Furthermore, we can observe that several elements, such as the social status associated with it or the belief in long-term value appreciation, have contributed to the recent expansion of NFTs.
“NFTs, in my opinion, offer a fairly prosperous future. Various current and future trends will continue to attract more NFT consumers. Blockchain technology and NFTs, for example, have the potential to significantly impact the gaming industry. Several games entirely based on NFTs have recently been produced, and current video games are being modified to implement NFTs. In addition, other trends will intrigue consumers, such as NFT ticketing, AI NFTs, and NFT streaming.
From Dr. Avayefe’s point of view, it has become clear that NFTs can become a powerful force for change when combined with various financial domains that will allow the network to keep data from a transparent platform and a specific, immovable and solid manner.
While NFTs and perks are growing at an inconceivable rate, cryptocurrencies have already taken their place as an inflation solution. Unlike NFTs, cryptocurrency can take physical cash and turn it into cryptocurrency; the most familiar is Bitcoin. Some consider Bitcoin as “Digital Gold” because they are residents of entities that interfere with the market. However, the Bitcoin blockchain and protocol operate like a fine-tuned machine and are not determined by economists who must respond to market events within the central banking system. In essence, Bitcoins are self-contained and hold their own without government interference.
We were eager to hear Dr. Ayavefe’s perspective on inflation and the effectiveness of cryptocurrencies.
“There is no doubt that investors and savers are worried about what to do with their money in this development. This is not a simple question, and many views exist on preserving money in the face of excessive inflation. In my opinion, a smart diversified portfolio of inflation-safe investments is essential to mitigating the consequences of inflation. In addition, assets such as real estate or commodities should also be considered as rates are skyrocketing. Real estate prices rise when inflation is high because investors seek assets that offer returns above inflation. Moreover, we can say that property is scarce when it comes to fiat currency, while the price of building a house increases along with inflation.
“The latest tool in the fight against inflation is Bitcoin. Institutional investors seem to be turning to Bitcoin lately, likely because they perceive it to be a more effective inflation hedge than gold.
We received a plethora of knowledge from our time with Dr. Ayave regarding digital finance on two platforms. Although NFTs cannot be traded, a cryptocurrency has the ability to do so, both forms of digital finance benefit from economic change. We thank this financial expert, renowned businessman and philanthropist for his time, for sharing his views and for helping to create a stagnant economy in this inflationary crisis.
To learn more about Dr. Ayavefe and his work, click here:
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