What do you know about very fungicides and very
non-fungible? These two legal terms are used to classify property as provided
in the Civil Code. For example, they are used when dealing with legal
transactions and related civil liability.
However, these two concepts can also be applied
in the context of investment. In this sense, knowing them can give investors
returns on products and financial assets considered fungible and non-fungible.
Want to know more about it? Read and understand
what fungible and non-fungible mean and much more!
goods and how are they classified?
To get started, you need to understand the
concept of the product. According to the Civil Code, they are an object that
belongs to a natural or legal person. In this way, everything owned by someone
can be considered reasonable.
Also according to these standards, products can
be classified into different groups. This is done to facilitate the
establishment of rules for each class individually.
Among them, we can highlight:
Real or underlying resources: with
and without physical existence, respectively;
Immovable or movable: allow its
proper removal in place, without losing its essence;
Consumables or non-consumables:
Movable goods whose use is immediately destroyed or not, in that order;
Divisible or indivisible:
fractions with or without changes in their structure, value, or substance,
Singular or collective: Existence
independent or dependent on another.
Also, Section 85 of the Civil Code may classify
products as fungible and non-fungible. This difference is one of the most
important in the context of investment - you will see later. But first, you
have to understand these ideas.
Now that you know what a resource is, it's easy
to understand what a fungible resource is and how it works. It is a legal term
used in the classification of real estate that may be substituted by others for
the same type, quality, and quantity.
Thus, it is possible to realize that the term
covers only movable property, since real estate, by its very nature, is
unchangeable. For example, a coin is a fungible product because it can be
exchanged for other currencies or for items with the same value.
For example, if you give someone a $20 bill and
that person returns a $10 bill, you still have the same amount of money.
Similarly, it is possible to exchange reais for dollars - providing
corresponding values in other currencies.
What is a
Unlike fungible products or non-fungible products
that are of the same type, quality and quantity cannot be exchanged with
others. This is because they have unique features that make them unique.
For example, in the case of artwork. No
reproduction of a famous artist's canvas would be as valuable as this, would
it? Each work has features that make it impossible to replace it with another.
Therefore, the price of a copy differs from the original.
However, it is important to be careful when
determining a good fungible or non-fungible, as it can change its condition.
For example, an automobile can be considered a fungible item. However, its
level of rarity can make it non-fungible.
examples of fungible and non-fungible goods in the financial market?
Once you understand the concepts of fungible and
non-fungible assets, you may wonder if there are fungible and non-fungible
investments. The answer to that question is yes. Therefore, it is possible to
run the operation through both types of investments.
Here are some examples of fungible and
non-fungible assets in the financial markets:
You see, a coin can be a good fungible one. Thus,
cryptocurrencies are an example of fungibility in the financial market. This is
possible because similar currency units can be exchanged with each other at
pre-agreed market rates.
After learning more about the subject, it is
common to wonder if there is a risk involved when investing in
cryptocurrencies. It is also natural to have doubts about the benefits of
buying these digital assets.
One of the major advantages of cryptocurrencies
is the security of their operations. To make a transaction, you do not need to
provide credit card details, your name, CPF, or where you live. Therefore,
there is no risk of your personal information being stolen.
Typically, accessing a traded virtual wallet or
exchange depends on a private key and a public key that identifies you and
allows you to trade. This increases the security of the process. However, speed
and low cost can also be mentioned as advantages.
The fact that cryptocurrencies are not regulated
by any banking institution or government is considered by fans as another
positive point. After all, there is no way to confiscate these from your wallet
and no way for the government to interfere in your quotes.
Thus, if the country has a ban on virtual
currencies, those who own them can transact online in their legitimate market.
Also, since the discussions are decentralized and
verified online, there are no tax exemptions for the tax authorities. However,
this does not mean that cryptocurrency holders may fail to declare their income
Another example of fungibility is the stock of a
company listed on a stock exchange. Thus, those who invest in securities on the
Stock Exchange, B3, or other exchanges around the world are trading this type
Fungibility is also common when discussing
products. The same is true of gold, silver, oil, wheat, soy, and corn. After
all, soybeans, no matter where they are born, always has the same monetary
value - as long as they represent the same characteristics and quality
The short form of a non-fungible item is
represented by NFT in the financial markets. It means non-fungible token. NFT
is a digital representation of a non-fungible asset.
Thus, it may represent, for example, works of
art, rare objects, personalized items, and less common pieces. This is for
memes, games, music, and videos. NFTs are used to trade pieces that cannot be
exchanged with others of equal value because they are unique.
What is the importance of understanding fungible and
As you can see, there are a number of fungible
and non-fungible investments. So, it is important to know these ideas to know
how you can benefit from them. Thus, it would be possible to consider fungible
and non-fungible in the financial market discussion.
In the case of fungible investments, it is
possible to make a profit in different ways. With stocks, for example, you can
make a profit by valuing them, or among other strategies, you can get dividends
distributed by companies.
In the case of non-fungible investments, it is
possible to earn a return with the appreciation of NFT from their reputation.
However, it depends on the market price characteristics. For example, whether a
collector pays more for a particular item.
Based on this information, it is possible to
understand the differences between fungible and non-fungible products and how
they work. Also, you can learn how to benefit from them in the financial
markets. But if you want to make a good decision before investing, you must
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