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What's the difference between cryptocurrency and NFT? To distinguish NFT from cryptocurrency, first, we need to understand what cryptocurrency and NFT are!
NFTs possess non-fungible characteristics, while cryptocurrencies have fungible properties. For instance, Bitcoin is fungible, meaning the BTC I hold is the same as what everyone else holds. On the contrary, each unit of NFT is unique and non-interchangeable.
Therefore, NFTs are limited in quantity, and the value of each NFT may vary. Cryptocurrency serves as the primary medium of exchange on the blockchain, while NFTs resemble art on the blockchain technology. However, this art can take various forms, such as a painting, a song, or even a tweet!
Is there a connection between these two? Indeed, there is. NFTs use cryptocurrency as the main currency for transactions because both are built on blockchain technology! |
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Post time 5-3-2024 07:57:23