Did you know that with the NFT craze, even the simplest of memes were being sold for hundreds of thousands of dollars? Undoubtedly, there’s no other trend as contagious as the way that NFTs are doing right now. And we’ll explain why, but first, here’s a disclaimer.
We are not financial advisors. The content on our website is for educational purposes only and merely cites our own personal opinions.
Moreover, at the end of this article, you’ll discover an NFT that you never thought would be sold at a ridiculous price of $2.9 million. And without further ado, let’s get started.
NFTs in a Nutshell
Well, it has always worked this way. People would earn money, then they would use that money to purchase goods. But, as more people spend more time on digital space like Facebook, Twitter, or Instagram and video games like CsGo, Fortnite, etc., the more our purchases shifts away from physical goods to digital goods. But digital goods often have no sort of monetary value, or in some cases, it’s very hard to monetize. And here’s why.
Arts Before NFTs
So, let’s say you created a stunning painting. Then you try selling it in a public market. In case someone tries to copy your painting by taking a photo of it. Then make a printed copy of your painting. It would never affect its value that badly because people would be able to tell just from the brush strokes that yours is the original painting.
In contrast, if a digital artist made a painting using a PC, for example. The very second he released that art publicly to sell as a jpeg image. Then he would almost immediately lose all control over his asset, as it could be copied with as simple as a right-click and copy-paste. Eventually, there would be a hundred identical copies of that original digital painting. Then, it would no longer be a limited resource, thus, dropping its value dramatically.
Arts After NFTs
And that’s what NFTs are trying to change. Actually, the word itself stands for ‘Non-Fungible Token.’ So, if something is fungible, then it means it’s interchangeable. For example, your ten-dollar bill can be completely interchanged with someone’s ten-dollar bill without affecting its value. Whereas, if something is non-fungible, then that means it cannot be interchanged, and it’s unique and the only one in existence.
$2.9 Million NFT!
The Providence of Blockchain Technology
NFTs made that possible by using blockchain technology to indisputably verify who’s the owner of the original digital goods. On top of that, there’s a one-of-a-kind token of ownership that everyone can confirm in the blockchain. So that ‘Token’ has a monetary value. This means that NFTs can only have one owner at a time. That’s why when people are buying and selling NFTs, what they’re really buying and selling is their virtual ownership over digital goods.
Final thoughts about NFTs
So, many are getting hyped with NFTs as a new door of opportunities has been opened for everyone. And with blockchain technology, the fact that you can be the sole owner of the token for digital goods fully authenticated via a system that’s completely fraud-proof, then it’s no wonder that a simple five-word tweet was actually sold for $2.9 million.
To be continued…