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EFT vs. NFT What are extremely fungible tokens?

In the world of cryptocurrencies, non-fungible tokens (NFT) have been dominating the headlines lately. However, there is another class of tokens called extremely fungible tokens (EFT) that are gaining popularity. While both types of tokens have certain similarities, they also have significant differences.

Let's start by defining both terms. NFT are unique tokens that represent a specific digital asset, such as a music file, video game or digital artwork. These tokens are designed to be non-exchangeable, i.e., they cannot be equivalently exchanged for other assets or tokens.

On the other hand, extremely fungible tokens (EFTs) are the opposite of NFTs. They are tokens that can be easily exchanged and are identical in terms of value. That is, if you have one EFT and I have another EFT, they both have the same value and can be exchanged without restriction.

But why would anyone want to use an EFT instead of an NFT? One possible answer is liquidity. NFT are single assets and therefore may be less liquid compared to EFTs. If a buyer wants to sell a specific NFT, they may have to find someone interested in that particular asset. On the other hand, if a buyer wants to sell an EFT, they can easily do so on any cryptocurrency exchange platform.

Another important difference is the cost. Most NFTs sell at high prices due to their uniqueness and rarity. On the other hand, EFTs are priced lower and are often used for everyday business transactions.

An example of an EFT is Bitcoin. Each unit of Bitcoin is identical in terms of value and can be easily exchanged on any cryptocurrency platform. On the other hand, an example of NFT is CryptoKitties, where each cat is unique and has a different value.

In summary, although NFTs have been in the spotlight lately, EFTs are also an important class of tokens. While both types of tokens share some similarities, they are different in terms of liquidity, cost and exchangeability. It is important to understand these differences to make informed decisions when investing in digital tokens.

The first collections of EFT tokens can be found at the following link: www.extremelyfungible.com

The first criticisms of EFTs were not long in coming

Although extremely fungible tokens (EFTs) may have certain advantages compared to NFTs, there are some criticisms that have been made of them. For example, some argue that EFTs are not as valuable as NFTs because they are not unique and have no collectible value. It has also been pointed out that the lack of uniqueness of EFTs makes them less interesting to collectors and therefore less likely to sell for large amounts of money.

In addition, some critics claim that the value of EFTs is unstable and can change rapidly. Unlike NFTs, which are based on uniqueness and authenticity, EFTs are created by assigning an arbitrary value and therefore have no solid basis in terms of value. Some also argue that EFTs do not have the same growth potential as NFTs, as the lack of uniqueness and authenticity limits their market potential.

As if this were not enough, they have also criticized extremely fungible tokens (EFTs) for their similarity to the current financial system. EFTs are designed to be interchangeable with each other, with no significant differences between individual tokens, which some may argue resembles the current financial system, where banknotes and coins are interchangeable with each other with no significant differences. In addition, critics may argue that the creation of EFTs may perpetuate an economy based on speculation and inflation, rather than promoting long-term value creation.

Despite these criticisms, some see EFTs as a viable alternative to NFTs, especially for those seeking a greater degree of flexibility and control over their digital assets. As the NFT markets continue to evolve and mature, it is possible that EFTs will become a more popular and accepted option for collectors and other users.

NFT Trends