Although some parents are happy their teenagers are now into NFTs to make their gaming and digital activities economically productive, they still harbor reservations After all, they aren’t sure if their kids truly understand what they are getting into since Nft technology is just new and quite complicated; whilst running on the so-called blockchain platforms. That alone makes them cringe because, it’s something they themselves have not tried before.
While the greatest explosion of news hype over NFTs is the sale of a digital art at an online auction site for $69 million, there has been a boom of NFT sales involving minors who found lucrative buyers for their in-game collections. Some others involved teenagers who dabble with digital arts, whilst collaborating with online acquaintances. However, young people tend to be aggressive and often throw caution to the wind, especially when it comes to having the chance to become financially independent.
Parents cannot help but feel worried when hearing of news about young people committing suicide once they feel that their newfound independence as influencers or gamers are threatened. Up to what point should they allow their children to engage in NFTs where they cannot officially participate because they are still minors.
Not a few are seeing their teenager hard at work in creating digital arts that they hope would sell lucratively as NFTs. Should parents step in and be in charge or would just end up looking to exploit their children? Nonetheless, the first step to help assess the situation is to have an understanding on how Nft technology works.
Minted Digital Collectibles are Known as DeFi NFTs
While a teen may describe the buying and selling of an in-game item or a digital art as similar to selling collectible cards, there’s a whole lot of difference on how such sales transpire. It’s enough to have physical ownership of a card and put it up for sale in the card collection market directly in exchange for cash.
NFTs are different because they involve digital assets that have been minted or converted into a non fungible token (NFT) via the decentralized financial system by which blockchain platforms work. That is why they are also called Defi nfts.
What Digital Items Can Be Minted as NFTs?
Non fungible denotes that the digital asset possesses a rare quality of being the original. Even if other copies have been published or sold, the digital item or work minted as NFT is the original or one of few items sold for a limited period.
What parent should know is that in order to have a digital asset minted, a cryptocurrency account must be opened with the minimum deposit required using the kind of crypto money supported by the blockchain platform.
Currently, the price index of a bitcoin is $48,342, which means one has to invest on one or more bitcoins to use when looking to mint a digital asset as an NFT in the bitcoin blockchain. NFT’s however, originated from the ethereum (ETH) platform, which denotes that opening an ethereum digital wallet will cost less, the current ETH price index being $3,215.
Moreover, there are fees to pay also by way of cryptocurrency when a digital asset is minted or converted into a non fungible token.
This further denotes that if your child’s NFT was financed by another party, he or she gets to receive only the dollar equivalent determined by the NFT investor as your child’s share of the related NFT sale.
Actually these are just the basics, but gives you an idea about the kind of financial transaction in which your teen is involved. What we suggest is for both you and your child, especially is he is still a minor is to consult with a financial advisor, particularly one with full knowledge of the blockchain technology and its decentralized financial system