Blockchain 101: NFT Misconceptions, Debunked

Separating fact from fud so you can finally explain NFTs to your normie group chat.

SMooTH

Posted on May 9, 2025

GM friends, and welcome back to Blockchain 101, where we take the weird, the complex, and the overhyped… and make it all make sense.

Today’s topic? NFTs — again. But this time, we’re not explaining what they are.

We’re clearing the air.

If you’ve ever heard stuff like:

“You can just right-click save it.”
“They’re bad for the environment.”
“NFTs are literally just scams lol.”

…then congrats. You’ve heard some of the most popular (and wrong) takes on the internet.

In this article, we’ll bust the biggest NFT misconceptions. No crypto jargon. Just facts.

Let’s go mythbusting. 🔍

9 common misconceptions

❌ “NFTs are just cryptocurrency.”

✅ They’re not the same thing.

Cryptocurrencies like BTC and ETH are fungible — one unit = another.

NFTs are non-fungible — each token is unique, and can represent a one-of-a-kind item.

They use the same tech (blockchain), but serve totally different purposes.

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Need a quick NFT refresher?

Read our full explainer here > Blockchain 101: What is an NFT?

❌ “NFTs are just images you can copy.”

✅ The value isn’t in the file — it’s in the ownership.

Yes, anyone can download the image. But only one wallet owns the NFT — and that ownership is publicly verifiable, secure, and provable.

It's not about the pixels. It's about the proof.

❌ “NFTs are scams with no real value.”

✅ Some are scams. But the tech itself is real.

Just like websites or crypto coins, there are NFT scams — but that doesn’t make all NFTs scams.

They unlock real use cases like creator royalties, proof of ownership, and programmable digital access.

It’s a tool. The value depends on how it’s used.

❌ “NFTs are just for rich people buying overpriced art.”

✅ NFTs = tech for owning digital stuff. And the price? Totally variable.

Sure, some NFTs sell for millions. So do watches, paintings, sneakers, and cards.

But most NFTs cost the same as your average Amazon purchase, and they’re used for gaming items, event tickets, collectibles, and more.

❌ “NFTs are a bubble that’s already popped.”

✅ They’re early-stage tech, not a fad.

Speculation? Sure. Crashes? They happened. Gambling? Very much so.

But NFTs are still powering games, events, creator tools, loyalty systems, and more — steadily gaining real adoption.

Digital ownership has been popular since before the blockchain existed. NFTs just made it official.

❌ “NFTs are terrible for the environment.”

✅ Not anymore.

This used to be true… but times have changed.

Ethereum now uses Proof of Stake, reducing energy use by 99.9%.

Other chains like Tezos and Polygon were eco-friendly from day one.

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Proof of Stake?

We’ve explained everything in one of our previous tutorials > Blockchain 101: Bitcoin vs Ethereum

❌ “NFTs are only for art.”

✅ They can represent literally anything unique.

Music, videos, gaming gear, hoodies, certifications, event tickets — all of it can be tied to an NFT.

Art just happened to go viral since it’s the most obvious and easy-to-understand NFT use case. But most NFTs will not derive value from how they look visually.

Xcopy’s “Right-click and Save As guy”

❌ “NFTs are useless/dead.”

✅ Most are. But not all.

Due to the highly volatile nature of the crypto market, the majority of NFT projects were launched as means of extracting money from early believers and speculators. This gave terms like “NFT” and “Metaverse” a bad reputation after the 2021–2022 bull run, and understandably so.

Since then, a lot has changed. Today, the tech is still here — just quieter, and actually being used.

❌ “With an NFT, you don’t actually own anything.”

✅ You own a verifiable token — not “nothing.”

You do own something: a blockchain-verified, tradable asset.

Its lack of physicality has nothing to do with its perceived value. Owning digital items can provide greater satisfaction for many — just like owning a noble title, a premium domain name, or an Instagram account with millions of followers. These aren't tangible, but their value is real, recognized, and often highly personal.

The famous Doge meme was minted as an NFT in June 2021 and sold for an astounding 1,696 ETH (around $4 million at the time) to PleasrDAO. Full story.

5 less common misconceptions

❌ “If I own the NFT, I own the copyright.”

✅ Not unless the creator explicitly gives it to you.

Buying an NFT doesn’t automatically give you intellectual property rights.

In most cases, you’re buying a digital collectible — not the rights to reproduce or license it.

❌ “NFTs are all on Ethereum (so gas fees suck).”

✅ Multichain is the new normal.

You can mint or trade NFTs on Solana, Polygon, Tezos, Arbitrum, Flow, Abstract and more.

Fees can be a fraction of a cent (or free) depending on where you mint.

Ethereum was just first. Now it’s one of many.

❌ “NFTs are only as good as their hosting site.”

✅ Only if they’re poorly built.

Well-made NFTs use IPFS, Arweave, or even store the art fully on-chain.

Projects that used centralized storage (like FTX NFTs) did fail.

But serious projects have decentralized permanence built in.

❌ “NFTs are plagiarized art theft machines.”

✅ Art theft does happen. But it’s not unique to NFTs — and tools now exist to fight it.

Most major marketplaces have:

Artist verification

DMCA systems

AI image scanning

Community reporting

NFTs can actually help artists prove authorship and monetize their work.

Source

❌ “NFTs are mainly used for money laundering.”

✅ That’s mostly paranoia.

Blockchain = transparent. Every transaction is public and traceable.

Laundering does happen though, like in fine art or real estate.

But saying money laundering is their primary purpose is like saying cash exists just for drug deals.

Conclusion

NFTs aren’t dead. And they’re not JPEGs. They’re a tool — a way to verify ownership of unique assets on the internet.

You don’t need to love them. You don’t need to spend your money on them (eventually you will). But understanding what they are (and aren’t) is the first step to navigating Web3 like a pro.

So the next time someone drops a “lol NFTs” take, you’ll know what to say.

And if they keep talking… just send them this article and a passive aggressive wink emoji 😉