In 2021, NFT sales ballooned to $24.9 billion, a tremendous increase from $94.9 million just a year earlier. Its rapid and immediate growth is comparable only to the rise of cryptocurrency, which grew 187.5% in 2021. Today, both ecosystems are still thriving as both demand and interest grow. And it’s worth noting that they are linked to one another—you can’t buy NFTs without crypto.
ReBlonde, which specializes in both NFT and crypto marketing, often receives queries from established companies who haven’t had crypto platforms or NFT products before but want to expand into one or both markets.
Often the question is the difference and the link between the two. Understanding these two concepts allows enterprises to decide which will help them achieve their business goals.
What is Crypto?
Cryptocurrency is a form of currency built on the blockchain. Like other world currencies, they are fungible, which means they can be traded and exchanged.
All data transactions with cryptocurrency are recorded in a public ledger. Unlike fiat currencies, cryptocurrency is well known for being based on a decentralized system that is immutable—it cannot be changed or tampered with.
What are NFTs?
Non-fungible tokens are unique digital items or digital representations of real-world objects. They are not interchangeable, and they are limited in number. The goal of NFTs is to enable private ownership of specific items. Similar to how a collectible trading card is unique with an individual serial number and has authentic seals, NFTs have a licensed signature that indicates that it is the unique and original piece.
As with other collectibles, one can buy or sell NFTs freely in a marketplace. Often, NFTs can be purchased or purchased on NFT marketplaces that use a specific cryptocurrency, such as Bitcoin or Ethereum.
Similarities and Differences
Both cryptocurrencies and NFTs exist on the blockchain and utilize the same technologies. You can even consider NFTs as a subculture within cryptocurrency, as they can be bought and traded depending on the currency associated with the specific marketplace. Generally, a person who uses cryptocurrency is likely to purchase an NFT, and vice versa.
However, cryptocurrency is a form of currency with economic value and can be traded with no loss to its value. Meanwhile, buyers cannot trade NFTs one-for-one. NFTs can only get purchased, like real-world assets. Their value goes beyond just money—their value may increase or decrease in the same way a painting or sculpture may end up costing more or less than their original price.
Same Technology, Different Platforms
To summarize, NFTs are digital assets, while cryptocurrency functions similarly to fiat currency but is not regulated and has other features, such as not requiring an intermediary for transactions and enhanced security.
NFTs are sometimes referred to as an offshoot of cryptocurrency, but they have different purposes and functions from each other.
One way businesses can dip their toes into this technology is by allowing crypto payments for their goods or services. Giving your customers or clients the ability to pay with crypto will, later on, open up opportunities to sell NFTs. Now that your company already accepts crypto, customers can access the currency to purchase NFTs that your company will eventually sell.
Consult Specialists to Gain a Market Foothold
To help you gain a foothold in the crypto and NFT markets:
- Get an experienced PR firm that can promote your company as a new blockchain-friendly enterprise.
- Let the online world know that you are now part of the chain by accepting cryptocurrencies.
- Draw in customers by introducing a new concept for NFTs.
All this can be done with the help of a PR company that knows the temperament of the crypto and NFT market.
ReBlonde Public Relations has dedicated teams for both crypto PR and the NFT markets, helping companies expand towards both markets. Consult with us for free today to get started immediately, or see what services we offer relevant to cryptocurrency and NFTs.