Posted by: Connor Patterson on January 11, 2022 at 11:57 am
NFTs are taking the world by storm, and somehow no one actually knows what they are. From Nyan Cat to Donald Trump it seems like everyone is hopping on the NFT train. We are going to do our best to explain what they are and show some crazy examples of how NFTs are changing lives.
What is an NFT?
An NFT (non-fungible token) is a digital art piece or other collectible turned into a one-of-a-kind asset that is easily tradeable on the blockchain. What makes NFTs non-fungible is that they are unique and irreplaceable. Almost like one-of-a-kind trading cards, except these “cards” are gifs of cats. NFTs have quickly become the newest cryptocurrency trend. Artists have made millions selling the digital rights to their pieces. Technically an NFT is part of the Ethereum blockchain. This blockchain supports these NFTs which makes them function differently than others. So now we know what they are but why would anyone buy them?
Why Buy Them?
Many people have been using NFTs as a way to collect digital art. In the same way that collectors will pay millions for a physical painting, digital art collectors scour the internet to find the perfect piece. Others buy pieces as an investment, believing that their value will skyrocket. NFTs are there to provide you with something that can not be copied, well sort of. Buying an NFT gives you ownership of the work. I can still download a copy from anywhere on the internet. It’s like buying an original vs a print. The original holds all the value. Here are some examples of our favorite NFTs and how much they sold for (just so you can see how crazy this is).
Nyan Cat ($580,000)
Jack Doresy’s First Tweet ($2.5m)
Beeple’s Ocean Front ($6m)
CryptoPunk #7523 ($11.75m)