Bitcoin is the pioneer of cryptocurrencies. Its use of blockchain technology opened the world to a new way of viewing money, transactions, and ownership. That led to the development of Non-Fungible Tokens, one usinqe way of representing ownership.
So, does Bitcoin support NFTs? Is Bitcoin an NFt crypto? Let’s find out below.
Is Bitcoin NFT?
No. Bitcoin isn’t an NFT.
Bitcoin is a digital cryptocurrency that runs on the Bitcoin blockchain. At the time of this writing, Bitcoin does not natively support NFTs. However, it’s possible to NFTs can be minted on networks powered by Bitcoin or other Layer 2 solutions.
What Is NFT Crypto?
NFT crypto is any cryptocurrency that supports the creation of NFTs on its blockchain. There are plenty of NFT cryptocurrencies in the market. But, at this writing, the Ethereum blockchain has the largest number of minted NFTs. Some other NFT cryptocurrencies include Cardano, Solana, and Tezos.
What Is The Difference Between NFT And Bitcoin?
There are plenty of massive differences between NFTs and Bitcoin. Let’s explore them below.
The main difference between NFT and Bitcoin is how each comes into existence. To produce an NFT, you must mint or create it. For Bitcoin, you mine it. Blockchain miners solve complex computational problems that award them tokens for their service on the blockchain.
The term “non-fungible” means an asset can’t be readily exchanged with another asset of a similar type. That means you can’t exchange an NFT with another.
In contrast, Bitcoin, as a cryptocurrency, is fungible (or exchangeable). You can exchange one Bitcoin for another or Bitcoin with other cryptocurrencies.
Where to Buy
To buy NFTs, you need a funded crypto wallet and an NFT marketplace. On the other hand, you can find and buy Bitcoin through DEXes, centralized exchanges, cryptocurrency brokers, or other users.
Examples of uses for NFTs include; Gaming, art collection, or acting as security for loans.
In contrast, Bitcoin is a currency. You can invest, pay for goods and services, and trade it on exchanges.
Is NFT Better Than Crypto?
Comparing NFTs and crypto isn’t an apples to apples comparison.
NFTs and Cryptocurrencies are different asset classes. However, they’re closely related since they both rely on blockchain technology.
Depending on what you want to invest in, you may opt for crypto over NFTs, vice versa, or both.
In short, while NFTs represent a form of digital asset ownership, cryptocurrencies are a currency. Cryptocurrencies are primarily economical, while NFTs can offer monetary and non-monetary value.
We’ve written an in-depth guide about the differences between NFTs and cryptocurrency. You’ll also learn that the two concepts have some similarities, too.
Do You Need Bitcoin For NFT?
No. You don’t need Bitcoin for NFT.
You don’t need Bitcoin to mint new NFTs, but you can use it to buy other NFTs. However, many other blockchain networks offer and host NFTs on their chain. Such networks include Ethereum, Cardano, Solana, and Binance Chain.
Can You Make An NFT On Bitcoin?
At the time of this article, it’s not possible to mint NFTs on Bitcoin.
However, Bitcoin offers excellent security features for platforms that host NFTs on the Bitcoin network.
Here are examples of NFT projects guarded by Bitcoin’s security features:
Scarce City is an art platform that allows artists to auction their artwork for BTC. The platform uses Lightning-powdered solutions to track accountability as they keep tabs on the anonymous auctions.
Lightnite is a gaming solution that allows participants to play games and earn. Using Blockstream, Lightnite lets you buy game items inside the games you play but as NFTs.
What Is The Point Of Owning An NFT?
People own NFTs for different reasons. Today, NFTs serve unique and multiple uses in real-world scenarios. Let’s look at some use cases to put NFTs in:
Use NFTs in Gaming
As more people adopt blockchain technology and NFTs, you can now use NFTs in gaming. Gameplay can generate NFTs in some cases. You can also trade skins and other in-game assets as NFTs.
Use NFTs as Collectibles
Since each NFT is unique, you can pick one for your art collection. Later, you can sell the NFT or join online virtual exhibitions and earn income.
Use NFTs to Tag property
The primary character of NFTs is their uniqueness, making them a great way to verify ownership. So, you can use NFTs to differentiate original products from fake products and secure your customers from fraudsters.
Can You Create Your Own NFT?
Yes. You can create your own NFT.
Today, more blockchain platforms allow developers to create NFTs on their networks. Besides Ethereum, you can build NFTs on the following networks:
- Cardano (ADA)
- Tezos (XTZ)
- Solana (SOL)
- Binance Chain (BNB)
So how do you make your first NFT;
- Decide what you want to convert into an NFT. It can be a video, art, picture, GIF, or more.
- Pick your blockchain. Which blockchain platform do you want to use?
- Create a crypto-wallet to fund and manage your first transactions in a marketplace.
- Choose an NFT marketplace. Examples include Foundation, Rarible, OpenSea, and SuperRare.
- Upload your NFT file to the marketplace. You can upload in the following formats; JPEG, MP3, or PNG files.
- Select a method to sell your NFTs in the marketplace. The three common ways to sell your NFTs are; at a fixed price, set a timed auction, or use a continuous auction method.
Now that you’ve gone through the steps, you’re probably wondering if someone can duplicate your NFT. We’ve written about this topic, too.
How To Invest In NFTs
With the growth in popularity, NFTs are a sensational topic in today’s investment sector. So, there are several things you must know when you want to invest in NFTs.
How to buy NFTs
You can buy NFTs from any NFT marketplace, where you get a platform to purchase or bid for the NFTs in an auction.
Great examples of NFT marketplaces include OpenSea, SuperRare, and Foundation.
You must have a crypto wallet and fund it with a crypto coin. An example, if you want to buy a Cardano-based NFT, you’ll need a crypto wallet funded with ADA.
How to sell NFTs
You can store purchased NFTs, hold them and sell them at a higher price later.
You will incur fees while setting a price for your NFTs. Each blockchain network has its own fee structure.
After selecting the correct marketplace for your NFT, let buyers bid. You can also set a fixed price for the NFT.
How to create NFTs
Despite every blockchain network having different procedures for creating NFTs, here’s a step-by-step guide on how to mint your NFT:
- Choose a crypto wallet and fund it with ETH. ETH helps with sorting gas fees when minting an NFT.
- Press the “create” button in the marketplace area to upload your work.
- Put the NFT up for sale and price it or let it undergo the auction process.
Although Bitcoin isn’t itself an NFT crypto, you can use BTC to buy NFTs. Bitcoin and NFTs have massive differences and use cases.