NFT’s stands for “nonfungible tokens.”
Nonfungible, simply means you cannot exchange it for another thing of equal value. You CAN exchange a $10 Bill for 2 $5.00 Bills. And one bar of gold could be traded for another bar of gold of the same size. Those things are fungible. An NFT, though, is one of a kind, unique item.
The token refers to a unit of currency on the blockchain. It is how cryptocurrency such as a Bitcoin is bought and sold on markets.
“Remember when people would stand in line for that newest pair of Nike Air Jordan’s at the brick-and-mortar stores? This is the digital twin!
NFT’s have brought together a certain culture and is a bet on the future. It also opens up a very lucrative market!
Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but Ethereum’s blockchain will also support these NFTs, and will store extra information from these Non-Fungible items that makes them work differently from ETH coin. It is worth mentioning that some other blockchains can also implement and support their own unique versions of NFT’s.
What Sort of Items would I find at the NFT store?
NFTs are generally anything digital such as drawings, music, unique collectable items, etc. but a lot of the current excitement is around using the tech to sell digital art.
Where would I look to find these Markets?
You can find several marketplaces now that have raised around NFTs, which allow you to buy and sell these NFT’s. These include OpenSea, Rarible, and Grimes’ choice, Nifty Gateway, and several others.
Think there cannot possibly be a market for digital art? Think again! This is an example of an Artist and his screen name is “Nifty Gateway.”
Look at those prices!! Quite amazing!!
Or maybe you prefer kitties?? Take a look at this:
NFTs really became technically possible when the Ethereum blockchain added support for them and one of the first uses was a game called CryptoKitties which allowed users to trade and sell virtual kittens.
Even though I love kitties, I cannot say I love them $170,000 worth!
Which is the price that someone gave for the above image!!
“The elemental thing that you’re buying is code that manifests as images on the screen. You are buying an image, or a unique and different format of art.
Remember, when you buy an NFT, you are usually not getting the copyright or trademark to the item. And Even though you own an NFT does not mean you will not see endless other versions on the Internet. There will be. It is, after all, the Internet.
Still, NFT enthusiasts express that owning a piece of code in a blockchain has proven to be an incredibly valuable thing.
“You are not really buying the picture; you are buying the property rights to the picture.”
How do you buy or sell an NFT?
Follow these steps:
First, you would need to buy a cryptocurrency, like Ethereum. Once you have some, you can go to an NFT marketplace. Some of the popular ones include known origin, Rarible and OpenSea.
There, you can take a look around, bid on an NFT which you are interested in and wait for the auction to end. If no one outbids you, you win the auction and the bragging rights to the item.
How do you make an NFT?
You can Log on to one of the NFT marketplaces and upload a file. This process is also called “minting” an NFT.
You will usually be asked if the item is a one of a kind if there are multiple copies or if it’s part of a collection.
Once you have completed your upload, collectors can start bidding.
Digital artists can build a royalty into their NFTs. It can cut out the middleman and open up a whole new way to earn money.
If you are not interested in buying or selling them, why should you care?
As tens of millions of dollars in transactions pour in for NFTs, enthusiasts say, NFTs will soon expand beyond trading art, music, video clips and memes. One startup company actually lets people use their NFTs as collateral for loans.
Silicon Valley investors state that the possibility to earn lucrative income in the NFT world are limitless.
When the iPhone was created, nobody would have ever guessed that one of the killer apps was going to be hitching a money-making ride!
What are the risks?
A tech frenzy such as NFT’s could always be a passing fad or stoking a speculative bubble. If you spend a large sum on an NFT and then met with lack of enthusiasm and values suddenly plummet, you could set yourself for a big loss. But optimistic NFT backers say the system’s built-in scarcity should keep values up, as long as the interest persists.
Be leery about works that appear to be created by famous artists. NFTs resembling pieces by the artist Banksy have netted $900,000, but in actuality they are fakes.
Why pay when you could right click on the image and save it to your desktop? That would be free.
Yes, this would be true.
But like with any other collectables, having an original just feels special.
It would be safe to say, what began as a hobby among a group of techies and finance nerds has grown into mainstream adoption and inspired many to create and earn big time!
If you are an artist or collector this may be for you!!