NFTs or Non-Fungible Tokens can be scary for somebody who knows absolutely nothing about them. Today, I am here to write about and inform you a bit more about what they are, and how they could potentially impact your business in the coming years. Firstly, we will cover what exactly and NFT is, and the pros and cons of implementing them into your future business plan. They may be the future; however, it may not be a part of your business’ vision. Find out more about how you and your business can look at implanting NFTs into your business plan below.
What is an NFT?
An NFT or a Non-Fungible Token is a form of cryptocurrency that exists solely on the internet. It usually takes the form of a picture, drawing, or video and is either one of a kind, or serial numbered. This makes each token truly unique. Some NFTs in fact give something to the user in the real world. Take for instance, the Bored Ape Yacht Club. Supposedly, holding one of their NFTs nets you access to their exclusive party that is taking place on a massive Yacht. You can find some of these NFTs going for hundreds of ETH (Ethereum) which equates to hundreds of thousands of dollars!
What is the Impact of my Business?
An NFT is an asset. Your business can either hold them or mint them to sell to potential customers! To be honest, it may be of huge benefit to do both. Holding assets can be a huge boon to your company, as what if one of them takes off? You now have a significantly higher budget within your company to work with! In this sense, an NFT can be treated like a cryptocurrency, and will likely be taxed by the government as such as well.
The Minting Process
Now, Let’s touch on the other point as well, minting your own NFTs for profit. NFTs are the future of physical item distribution in many ways, such as tickets to an event. Creating an NFT may cost your business money initially, however, it will be worth it in the long run. If you mint an NFT and then sell it, all that profit is yours. Furthermore, when the user that purchased your NFT sells it, you get a predetermined cut of the sale. This goes for every sale thereafter as well. The marketplace for NFTs may very well be in the eyes of the beholder, however you can guarantee yourself some of the profits through the flat cut from sales.
What are Gas Fees? Why Does it Cost to Mint?
Minting or creating an NFT costs money. I cannot deny this fact. Most of the time, it costs a tiny bit of Ethereum or ETH for short. This is since most mints take place on the Ethereum network. The Ethereum network costs money to run, however that money does not go to the creators of Ethereum. Your minting costs, or “gas” fees go to the Ethereum miners who keep the network up and running with their resources. This is the basic concept of how a blockchain operates and gives miners of Ethereum an incentive to keep doing so by placing a monetary value on mining. Mining also consumes their resources in the real world, so it is important for their costs to be covered as well.
Selling NFTs to a Mass Market
Selling your NFTs can be quite simple. Go to a marketplace that offers NFT sales. The most common and frequently used one that I would recommend is opensea. You can find it at opensea.io. Opensea allows you to market and sell your NFT for a price you set. However, most NFTs on the platform ask for Ethereum over cash. Ethereum however can be easily exchanged for other cryptocurrency, or straight up cash through an exchange. Posting is relatively simple, as you can even mint on the platform for later postings.
Selling for Cryptocurrency Seems Like a Hassle. Is it Really?
In short, no, not really. Exchanges handle most of the difficult stuff for you. All you must do as the user of the exchange is approve it. As mentioned previously, selling NFTs on a platform such as Opensea usually involves the exchange of the cryptocurrency Ethereum. Ethereum can be directly sold for cash or exchanged for other cryptocurrencies of value. Once you understand how the exchange operates, it is quite simple. Think of it like the stock exchange. Buying and selling your assets.
Cryptocurrency and NFTs may seem like a hassle to most. However, it is the future of many businesses and products that said businesses will provide. It is the digitization of goods. Each NFT is unique, and provides a value to the customer. Selling NFTs on a platform such as Opensea has simplified the process dramatically. We also covered gas fees, and how the network operates for minting and creating NFTs. Creating NFTs has also never been simpler. Just pay the gas fee, and work with an artist, and boom, done. NFTs can impact your business in a very positive manner, especially for profit. Find out more business insights on our website, astrotechllc.com!