NFTs are digital cryptocurrency tokens in the form of Digital Assets, such as original artwork, trading cards, music, and videos. NFT is for Non Fungible Tokens, and they've been the most talked-about topic of the year thus far.
What In The World is an NFT?
A simple NFT definition refers to a digital crypto token that is Non-Fungible. It can be anything from a piece of original artwork, trading cards, or collectibles to anything digital that cannot be swapped with other NFT tokens or other digital assets. The term "Non-Fungible" was coined since they are indestructible and cannot be re-created or duplicated.
Why are they rare? Let's relive our childhood lives and look at the viral cartoon Pokemon. Pokedex cards aren't interchangeable either; a friend's First Edition Charizard isn't worth the same as yours. Each has unique numbers and qualities that make it worth varying amounts of money.
NFTs: The World Where Mad Men Succeed
Among the fascinating aspects of NFT is the phenomenon where several artists (NFT creators) have become multi-millionaires in a matter of days. For a cool $69 million, prominent NFT artist Beeple sold his art collection, "Everyday: The First 5000 days," which he created for himself. In addition to Beeple, several other NFT creators have made millions of dollars selling NFTs, such as PAK.
If you want to dabble in this world but don't have quite as much budget to spare, you can get valuable pieces like a couple we're featuring here—aimed against pharmaceuticals while supporting marijuana. These pieces are actually genuine works of art crafted by talent and genius. But you might ask, how much are they? Well, you can get these pieces at a measly $500,000 (almost) each. Check out Cannabis Crucifixion II and Cannabis Crucifixion IV.
What kind of mad man would spend this much money on NFT art? I'll tell you—it's the kind of mad man that can flip a 500K NFT crypto art into millions. Keep reading, and you'll understand why NFT is a fundamental technology that has the potential to dominate the globe—if it hasn't already.
Fear Mongering with NFT Scams
Non-fungible Tokens (NFT) are all the rage in today's digital economy, where consumers can make money by trading NFTs. There are many other types of digital assets, such as art, images, GIFs, music, video game goods, collectibles, memes, and virtual fashion, to name just a few.
Since the worldwide NFT market is estimated to reach $80 billion by 2025, we can see NFT scams envelop the industry as much as NFT creators do. Today, NFT fraud has become a fact of life, and more NFT copies will appear as more artists and designers use NFTs and become familiar with this new technology and money streams. But do these scams scare away madmen with a vision? No. And here's why.
Why NFTs Are Worth It
Buyer Vignesh Sundaresan feels NFTs are a legitimate store of value and signal a revolution in how the world views art and valuable items. Sundaresan paid $69 million for a work of art at auction. To him, it's a new commodities class that links buyers and sellers worldwide. To others, it's a total waste of money.
Each NFT is unique and cannot be swapped for another, even if they appear to be the same. "Rarity" and "Uniqueness" dictate an NFT's value. A significant reason why NFTs are so expensive is that they cannot be mass-produced like Cash or other Crypto-Currencies. An NFT's rarity can pique a consumer's attention as no other factor can. Since an NFT can only have one owner, it instils a strong sense of scarcity. This drives consumers to obsess over a specific piece and fear that someone else may get their hands on the NFT they've been searching for.
NFTs are akin to trading baseball cards on the playground—but for the super-rich. While these cards have no intrinsic value, their fluctuating value makes collecting and trading them like a high-risk gambling game. And the higher the risk, the higher the rewards.
Bottomline
To appeal to the high risk-taker investor, NFTs provide the potential to make some enormous profits. But to a low-risk investor, an index fund is still considered a more stable investment option than a Pop-Tart kitten GIF, even though it's not as glamorous and has a cultural cachet. So ask yourself: are you a mad man with a vision?
Open a digital wallet first if you're willing to take a chance and explore the non-fungible token realm. Then, you'll need to search for NFTs on OpenSea.io or Rarible and acquire the cryptocurrency required to purchase the NFT you're interested in.
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