An NFT is a Non-Fungible Token or NFT for short. But what does that even mean exactly? How can one explain it?
First, what is an NFT? Recently the general public has experienced them as a digital video of a cat flying through space trailed by a rainbow. That sold for $60,000 US. Or a piece of digital art by creator, Beeple, that sold for $69 Million US. It’s even Jack Dorsey’s (CEO of Twitter) first tweet that has been bid up to $2.5 Million US (or higher now). These numbers and the relative absurdity of what they are applying to has been exciting and confusing to the public for the better part of 2021. It’s hard to ignore the hype when this type of news is swirling.
The more basic premise for an NFT is that it exists in the digital world only has no physical counterpart that is unique and not easily exchangeable in this realm. While it is on the blockchain through a minting process, it is not like Bitcoin or other cryptocurrencies. The blockchain is only there as a bookkeeper to enable an accurate record of the asset’s creation and the changing of hands through commerce. It also makes it possible for artists to be compensated for their work long after the initial commission. That’s still very hard for many to wrap their heads around. Especially because digital files can be copied over and over again.
To help us break this down further, NFT creator, Johnny Wilson from Eclectic Method, has helped us answer some key questions. He helps us add some valuable context both as a creator and as someone who is currently making a living from his creations.
Right now, there are a lot of people out there having extreme FOMO (Fear of Missing Out) over this phenomenon. The same people who might have lamented not purchasing BitCoin and holding it or not buying Tesla when under $20 might be the most susceptible to doing something very uninformed. That’s why we felt it was necessary to make this video to explain exactly what it is, who it helps, how you might get into it yourself, and ultimately if this really is the investment opportunity you need to be in.
What is your take on NFTs? Are there any questions you have about them that aren’t being answered? Did we miss anything crucial? Please let us know in the comments below.