NFT: Non-Fungible Token. This is a token used to represent ownership of an item. “Tokenizing” from everyday household essentials to priceless art pieces is used to purchase wants and needs via a token. The term “non-fungible” means it cannot be interchanged with anything else, as it carries unique features. “Fungible” has no distinctive features and is only defined by their value; therefore, they can be exchanged. At the same time, NFTs cannot be exchanged as they are specific to the ownership of designated items. Due to digital transformations within the financial world, most of us would consider NFTs and Cryptocurrencies similar; however, that is not the case. NFTs are built using programs such as Bitcoin or Ethereum, their only similarity. Furthermore, the physical dollar is changeable as Cryptocurrency, whereas NFTs are not.
With the world becoming familiar with digital transformation, there are several terms that we all must eventually gain extensive knowledge on how they work and what they mean. NFT is one of those abbreviations most who are not advanced in the financial world may need an explanation of what these letters stand for. And before we educate ourselves about Dr. Yasam Ayavefe’s views on NFT and Cryptocurrency, receiving a brief description of the subject matter will benefit all of us.
NFTs have the potential to become uniquely successful, benefiting the world’s economic conditions. As we learned from Dr. Yasam Ayavefe:
“The exponential rise in popularity of NFTs demonstrates the unpredictability of new technology acceptance. Furthermore, we can observe that several elements, such as the social status associated with it or the belief in long-term value appreciation, contributed to the recent expansion of NFTs.”
“NFTs, in my opinion, have a quite prosperous future. Various current and future trends will continue to attract more NFT consumers. Blockchain technology and NFTs, for example, have the potential to impact the gaming industry significantly. Several games based entirely on NFTs have recently been produced, and current video games are being modified to implement NFTs. Furthermore, other trends will intrigue the consumers, such as NFT ticketing, AI NFTs, and NFT streaming.”
From Dr. Avayefe’s perspective, it became apparent that NFTs can become a powerful force for change when combined with various financial arenas that will allow the network to retain data in a transparent platform and a specific, unmovable, solid manner.
While NFTs and benefits are growing at an inconceivable rate, cryptocurrencies have already taken their place as a solution against inflation. Unlike NFTs, Cryptocurrency can take physical cash and turn it into Cryptocurrency; the most familiar is Bitcoin. Some consider Bitcoin “Digital Gold” as they are resistant to entities that interfere with the market. However, the Bitcoin blockchain and protocol run like a perfected machine and are not determined by economists who must respond to market events within the central banking system. In essence, Bitcoins stand-alone and hold their own without governmental interference.
We were anxious to know Dr. Ayavefe’s views about inflation and how cryptocurrencies are effective.
“Without a doubt, investors and savers are anxious about what to do with their money in light of this development. This is not a straightforward matter, and numerous viewpoints exist on preserving money in the face of excessive inflation. In my perspective, a clever diversified portfolio of inflation-safe investments is critical for mitigating inflation’s consequences. In addition, assets such as real estate or commodities should also be considered as rates are soaring. Property prices rise when inflation is high because investors seek assets that provide returns greater than inflation. Additionally, we can say that property is scarce concerning fiat currency, while the price of constructing a home rises in tandem with inflation.”
“The latest tool in the struggle against inflation is Bitcoin. In recent times, institutional investors seem to gravitate towards Bitcoin, presumably 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. While NFTs cannot be exchanged, and Cryptocurrency does hold 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 perspective, and for helping to create a stable economy in this inflation crisis.
Find out more about Dr. Ayavefe and his work here: