As the popularity of non-fungible tokens (NFTs) explodes, many regulators are looking to regulate this trendy new asset. Recently, MP Pierre Person tabled an amendment to the finance bill for 2022 with the aim of clarifying the taxation applied to NFTs.
What is an NFT?
A Non-Fungible Token, non-fungible token or NFT, is a unique 100% virtual token (or a digital version of something that exists in the real world) that is issued on the blockchain, mostly Ethereum, and directly transferable between two people .
An NFT is different from classic cryptocurrencies like Bitcoin or Ether. Cryptocurrencies are indeed fungible, that is to say interchangeable: 1 Bitcoin is worth 1 other Bitcoin, while an NFT is not fungible.
It is therefore a unique asset that cannot be replaced by something else: 1 NFT is not worth 1 other NFT. A non-fungible token has indeed unique properties and shows certain proofs of authenticity and signatures such as a unique identifier, a unique creator or even unique content.
Why invest in NFT ?
NFTs are seen by some as a way to take advantage of the blockchain to support a creator and have a special relationship with him. Others think NFTs are the future of how culture is going to be stored. For some people, NFTs are a tool for speculation and investment.
Since NFTs are unique, the associated sense of scarcity can increase interest in certain NFTs, thereby driving up their price. It is indeed possible to make significant profits if you invest in the right NFT. Use cases for NFTs are also on the rise, making this market increasingly popular, paving the way for significant growth and development potential.
How to invest in NFT ?
To invest in NFTs, you need to choose and set up a wallet to send your recently purchased NFTs to. You must then choose the platform you are going to use depending on the type of non-fungible tokens you want to acquire and the type of currency you want to use as a means of payment (fiat currencies vs crypto currencies).
Among the most popular are the following platforms:
To maximize your investment in NFTs, it is advisable to focus on what you know how to do. So tap into your area of expertise to choose the best NFTs based on your goals.