The Difference Between NFTs and Cryptocurrencies
Although NFTs and cryptocurrencies are both powered by blockchain technology, they serve different purposes and have fundamental differences in how they function.
1. Fungibility:
- Cryptocurrencies (such as Bitcoin and Ethereum) are fungible assets, meaning one unit is interchangeable with another of the same value.
- NFTs, on the other hand, are non-fungible, meaning each token has unique properties and cannot be replaced by another NFT of equal value.
2. Use Case:
- Cryptocurrencies are primarily used as digital money.
- NFTs represent ownership of unique digital assets, such as art, collectibles, and virtual real estate.