The holidays are just around the corner, which means you will likely be doing a lot of forced small talk. Therefore, prepare yourself this holiday season with some trending crypto topics that will impress anyone at the party.
Non-Fungible-Tokens are either a familiar subject to some or a complete mystery to others. Since most people don’t understand them, let’s equip you with the essential talking points. To start, let’s define what ‘fungible’ means.
A fungible item is something that can be exchanged – one to one – like a dollar bill. A one-dollar bill is mutually interchangeable with another one-dollar bill, making it ‘fungible’ and useful as currency. On the other hand, a piece of fine art would not be mutually interchangeable since it is one of a kind and therefore ‘non-fungible’.
An NFT is a digital token that is unique and not mutually interchangeable. When a photo is turned into an NFT, it becomes a one-of-a-kind token living on the blockchain. While someone can make a copy of the image, no copy can be claimed as the original since the original record of ownership is preserved and verified by the blockchain the NFT lives on.
However, digital art is not the only use case for NFTs. There can be NFTs of videos, audio, or even formal documents like real estate titles or identity information. Furthermore, if the metaverse becomes integrated with our everyday lives, the ability to easily own and verify digital assets will become increasingly important.
Before Facebook rebranded to Meta, the concept of a virtual reality world was not a new idea. Books like Ready Player One or Snow Crash foresaw a reality where a virtual world is more powerful and influential than the physical world. While many portrayals of the metaverse take a dystopian angle, no one really knows how this hybrid reality will unravel.
However, the creation of blockchain technology and NFTs reignited momentum for the creation of this virtual reality. The decentralized capabilities of blockchain technology means that it is possible to create a virtual world that is publicly owned with NFTs bringing legitimate value inside of this virtual world.
The possibilities of what will be created are endless. One of the big questions is whether or not a particular company like Meta will privately own the metaverse or if the virtues of democratization and decentralization will win out in the long run.
As crypto continues to catch the attention of investors, many are looking for tax-advantaged ways to add crypto to their portfolios. Companies like iTrustCapital are gaining popularity because they allow clients to invest in cryptocurrencies inside tax-advantaged IRAs. They let investors self-trade crypto inside a Traditional, Roth, or SEP IRA. Each type of account provides different tax benefits which can suit a variety of needs.
This new type of retirement account is termed a Crypto IRA. The anatomy of these IRAs is nothing new to retirement investing, but iTrustCapital has repurposed this trusted retirement account to take advantage of this emerging asset class.