Wiki: What Is A Crypto Collectible?
Crypto collectibles are the newest way in which blockchain technology is being used to verify transactions of rare items. These unique digital assets are potentially highly valuable because of their scarcity and the fact that they can't be duplicated. Using the examples of CryptoKitties and Factbar, this guide can teach you how these collectibles work. If you're interested in learning how to purchase a collectible, you can read this guide on how to claim a Factbar. This video was made with Ezvid Wikimaker.
How Many Types Of Crypto Collectibles Are There?
That's a tough question to answer, since more collectibles are added to the marketplace every day. Dapp Radar has a list of many that are available on the Ethereum network. Though they may look similar, it's important to read up on them before purchasing, as not all collectibles are created equal.
Can Ethereum Be Bigger Than Bitcoin?
How Do I Buy A Crypto Collectible?
Since these collectibles are digital and based in the blockchain, you need a cryptocurrency such as Ethereum in order to purchase them. The first step is to install MetaMask in your browser. Once you've done that, you can use Coinbase to purchase some Ethereum and load it into your MetaMask account. You'll then trade through MetaMask in order to obtain your preferred collectible. For a full walk-through of how this process works, check out this guide.
An Introduction To Cryptocountries
Crypto collectibles are unique digital assets that are traded among users on the blockchain. Using the examples of Factbar and CryptoKitties, which exist on the Ethereum blockchain, we'll walk you through what makes these assets valuable and why so many people are willing to pay big sums for them.
You may be familiar with Bitcoin, the digital currency that relies on blockchain technology. Understanding what makes a collectible like Factbar different from a currency like Bitcoin or Ethereum will help you understand what makes these collectibles so potentially valuable.
Bitcoin is like any other currency in that it is fungible. That means that, like dollars, they are all the same. If you have two Bitcoins, and you plan to sell one, it doesn't matter which one you sell because they're worth the same amount.
Bitcoin is like any other currency in that it is fungible.
Collectibles like Factbars are non-fungible. Each one is unique, and has its own unique value. This means that if you are the owner of a particular Factbar, you are the only person with that Factbar. No one else can own it unless they claim it from you. Highly desirable Factbars are therefore worth a great deal of money. Factbars aren't a currency, they are an asset.
One of the first collectibles available on the Ethereum blockchain was CryptoKitties. Only a set amount of these kitties are put on the market, and more can only be created through "breeding." Aside from their cute factor, rare kitties are unique. Some owners pay big sums to breed their kitties with others, and one rare token traded for $110,000. The equivalent of millions of dollars have been traded on this blockchain-based game.
The difference between CryptoKitties and Factbar is that CryptoKitties is essentially a game, and the value of your token is dependent on how many people are playing that game. It can be compared to something like "Magic: The Gathering." Certain cards are worth a lot of money, but only to people who play that game.
Certain cards are worth a lot of money, but only to people who play that game.
What makes Factbar special is that these tokens have a use outside of just accruing value. They represent facts that have are continually researched and vetted by those who visit the site. You can post your Factbar, with your name in the videos and images, as part of a YouTube video or on your personal website.
As the use of Factbar becomes more widespread, its reputation will grow, and you stand to benefit from that reputation, as your facts will carry the site's seal of approval. Even if the popularity of other collectibles wanes, you can market your own Factbars personally to those who see their potential.
Because crypto collectibles are not a currency, they need to be purchased using Ethereum. An extension like MetaMask is required for browser integration. You can use a site like Coinbase to add Ethereum to your MetaMask account, and your Factbar name will be tied to MetaMask. As soon as you claim a Factbar, the price for it goes up. This is based on the smart contract, so it is done for you.
Because crypto collectibles are not a currency, they need to be purchased using Ethereum.
After someone claims your Factbar, you can withdraw the funds and return them to your MetaMask account. You can repeat this process as much as you like, and target Factbars that you think will be highly sought after due to their relevance and reliability as facts. You can also build a roster of Factbars that reflect your worldview to create a brand for yourself.
There are many types of collectibles available, with more added every day. Some are games like CryptoKitties, where players strive to own rare kitties that may increase in value among a subset of the population. Others, like Factbar, are based on an online community and can increase in value as their accuracy is reinforced.
Another step forward in the realm of games on the blockchain is CryptoCities. Rather than simple tokens that are traded back and forth, this is a surprisingly complex strategy game that mixes elements of SimCity and board games like Diplomacy. With multiple smart contracts, the game is continually being expanded upon in order to encourage users to keep playing, and is a sign of the type of blockchain-based games we may see in the future.
Another step forward in the realm of games on the blockchain is CryptoCities.
It is unclear where the market for these virtual assets is headed, but many are seeing the possibilities of owning a rare item in a landscape where investors are hoping to use the popularity of blockchain to verify ownership of unique goods. You'll be the only one who owns it, so those who desire it will have to come to you.