Are NFTs Cryptocurrency?

Asked a year ago

Hi hi! Is there a difference between NFTs vs. cryptocurrencies? Or is an NFT a type of crypto?

Terence Lawrence

Tuesday, February 22, 2022

Cryptos and NFTs stem from the same technology and encoding process via blockchain, but their difference lies in fungibility. Cryptocurrencies are digital tokens with fungible economic value meaning they are mutually interchangeable, i.e., 1 Bitcoin is always 1 Bitcoin. However, NFTs are non-fungible tokens whose value transcends economics. For example, one BAYC NFT isn't equal to a CryptoPunks NFT; neither are the NFTs within the BAYC collection equal or exchangeable with each other.

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