Essential questions about NFTs

What is not an NFT?

• NFT does not live in a vacuum. NFT is just a record in a digital ledger—not a file you could effectively save or detach. If something happens with the ledger, the same happens with the NFT.
• NFT is not a property right by default. Property rights are defined by governments, not blockchain networks, and NFTs remain in a grey area with no enforcement mechanism.
• NFT is not copyright. There are no laws protecting copyright, and minting an NFT creates no obligations or restrictions.
• NFT is not unique by nature. Nothing prevents an artist from issuing two NFTs and attaching the same piece of artwork, except their goodwill.
• NFT doesn't carry the digital asset. The artwork is not embedded in the NFT—NFT carries a link to it. If the host disappears, the link leads nowhere.

Why NFT is different?

In the digital world, everything can be copied, replicated, and distributed at no cost. NFTs are here to fix that and add real-world traits to digital assets—establishing provenance and ownership in a space where none existed before.

What's the value of an NFT?

Value of an NFT = Utility + Ownership History + Future Value + Liquidity Premium. Currently, utility is limited and liquidity premium is secondary. The market is driven largely by Ownership History (as a historical asset) and Future Value speculation.

Is the NFT market a scam?

The NFT market has great potential in bringing value via utility and as a historical asset. But any market must have reliable infrastructure—something guaranteeing an asset will not vanish, ensuring uniqueness, and allowing legal ownership. NFT markets reside on global trust, much like the multi-billion art market.

What's the market price of an NFT?

The price of something is defined by the agreement found by a seller and buyer. The most influential factors are market demand, the author's prestige, the history behind the asset, and its popularity. A well-known painter whose artworks sell for $10k could mean an NFT of their work carries similar value.

What would make the NFT market bloom?

• Legal coverage. Markets depend on stability and trust. Legislation must define terms and move digital assets from a foggy area to a fully legal space.
• Cooling down the NFT fever. High future value expectations are features of financial pyramids and should be avoided to keep the market healthy.
• Real NFT implications. NFTs should work in logistics, certifications, and artists reward programmes—this is just the beginning of the journey.
• The simplicity of use. Things got easier with Opensea and Metamask, but it remains tedious for artists to issue and manage NFTs.
• Reliable storage. A reliable, community-driven infrastructure of digital asset storage—self-funded and free from corporate influence—is needed.