Oftentimes we would hear someone argue that NFT’s can be thought of as some form of Online Betting. But is it in fact? Although there are certainly some crosses between the two, the simple answer is no, they are not. However, understanding the core functions of each would help us to determine what certain similarities both have and the possibilities they can share in the near future. In this article we are going to look at another question that has been bothering the internet for quite some time: Are NFT’s similar to Online Betting? Let’s find out!
NFT (Non-Fungible Token)
First of all, what are NFT’s? If you’ve heard this term somewhere but forgot what it meant, don’t worry, we here at the Empire27 Forum will break it down for you!
‘NFT’ stands for Non-Fungible Token. Being non-fungible means that it can not be replaced, nor recreated. Think of it as a digital asset. Yes! You heard it right, you can actually own something on the internet. Just like Bitcoin is likened to being the digital asset for replacing currencies, NFT’s are like the digital counterpart for collectible items. It can be anything digital. Artworks, photographs, or even a GIF. Some games these days even incorporate NFTs as virtual assets and rewards that you can earn through playing.
What gives value to these NFT’s is their rarity and scarcity in the market. Think of them as being “one of a kind” digital assets that could be bought or sold just like you would with real-life property or pieces of art. Traditional pieces of art are valued precisely because they are one of a kind. NFT ownership is similar whereas the asset can be tokenized to have a digital certificate of ownership and can be transferred to only one address at a time. The most expensive NFT that was ever sold on the internet to date was a digital collage that was auctioned at over $69 Million dollars!
Online betting on the other hand is a form of entertainment wherein you place bets on an online betting game such as (virtual) Poker, Blackjack, Slots, Roulette, or any kind of betting game conducted on the internet. The internet has in fact has allowed so many kinds of online betting games to become online. Other popular online betting games include Bingo, Lotteries, and Sports betting.
With the rise of NFT games, plus the demand for online betting games, it would be no surprise that in the future, we would be able to see more online betting games incorporate NFTs as rewards for playing.
Is Buying an NFT betting?
Some would say that buying an NFT is a bet because you wouldn’t know if the value of that token can go up and down, so it’s just as much as betting on the next hand shuffled from the BlackJack dealer’s hands.
We get why it feels so much like betting rather than investing. However, by doing your own research, the odds become more stacked in your favor. People who make a decent profit from making or selling an NFT know if it has the potential for its value to increase or not. A key point to look out for is the demand and supply. Is there a lot of supply? Or is the supply limited? If the supply is limited, then that means the token has more rarity, which can increase its value over time. If there is a lot of demand for it as well, then you know that the market wants it which could turn out to be a good investment on your part.
Just remember that when you are buying an NFT, you aren’t losing money, but rather, you are exchanging it to gain an asset, which can prove to have some value later on. This is what makes NFTs different from betting because the output of betting relies heavily on probability and luck instead of research and analysis. While NFTs are centered around people who are involved in investments, online betting is mainly for entertainment purposes. Although both can be incredibly fun activities to do!
What do they have in common?
The common factor between the two is that they are both doable online, and they can give you a lot of money. However, both carry a certain risk. For example, if I bet my luck on the Roulette, the money I throw down is already considered a risk which I was willing to take. Similar to buying NFTs, when you buy one, you are also risking your money in hopes of selling for a profit later on. In principle, you should only bet, or buy something with money that you can afford to lose!
The Future of NFTs and Online Betting
The NFT market is certainly set to intersect with the online betting platforms. Crypto and NFT enthusiasts predict that merging the two would spark a new wave of interest and open up a whole new demographic. Imagine playing Slots online but the prices are NFT’s. Another avenue is for the integration of NFTs into sports card collectibles. A lot of luxury brands and sports companies have already started using NFT’s as tokens, betting rewards, and tickets. With that in mind, it would be no surprise that in the future we would have an online casino that is inside the metaverse where you can play and earn NFT’s as rewards. Either way, we would still see NFT’s dominating the online space in the next few years.
A large majority of our time is spent online these days. With the rise of NFT’s, the metaverse, along with the fast-growing online communities, we can definitely predict that the future is bright for these industries. The merging of such would create a whole new dimension of possibilities for us to discover in the online world.
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