The Difference Between Bitcoin and NFTs

1. definitions of Bitcoin and NFTs

　To begin with, it is important to understand the basic definitions of Bitcoin and NFT.

Bitcoin

・Bitcoin is a digital currency and can be sent from one person to another without an intermediary such as a bank.

・It is decentralized and is not controlled by any government or financial institution.

・It is used primarily for the purchase and sale of goods and services.

NFT (Non-Fungible Token)

・NFTs are unique digital assets and are stored in the blockchain. It indicates the owner of a particular digital content (image, video, music file, etc.).

・NFTs cannot (usually) be divided into smaller amounts.

・Purchasing an NFT is like buying a creative work or work of art that exists only digitally.

2. the difference between Bitcoin and NFTs

　Bitcoin and NFT are not the same, but they are not exactly opposites either. It is important to understand how each relates to the blockchain.

　Simply put, Bitcoin is a system that uses the blockchain to record transactions on a ledger that anyone can see. NFTs, on the other hand, are purely digital creative assets such as images and audio files, which are permanently stored in transactions on the blockchain.

　If we compare blockchains to a train, we can think of a blockchain such as Bitcoin as a train that carries people, cargo, and various objects. And NFTs are like objects (in this case, digital art) that are carried on the train.

　When you make a transaction on the Bitcoin blockchain, you are typically sending some type of economic value (money) to another person. This transaction occupies real memory in the block, and that block space is limited (like a train car). A fee is paid in exchange for the right to use that block space when making a transaction.

Technically, however, you do not have to use that block space just to send Bitcoin to another person. Instead, you can use that block space and pay a fee to place your chosen image in it. This is called “minting” (minting) an NFT.

　The minting of NFTs varies from blockchain to blockchain, but those details are not important for this article. It is important to understand how blockchains and NFTs are related.

3. conclusion

　Bitcoin and NFTs both use blockchain technology, but they are not the same thing.

　NFTs are ultimately a type of transaction on the blockchain that references creative works for others to enjoy and trade; Bitcoin can also mint NFTs on the blockchain, but that is not Bitcoin’s primary purpose (at least at this time at least at the moment).

These are the basic differences between Bitcoin and NFTs. Understanding these differences will help you properly use Bitcoin and NFTs for investing and trading.

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