NFTs have kicked off a frenzy that is hard to miss, and they are the hottest thing around right now.
To some they are an innovative, brilliant asset that joins cryptocurrencies; to others, just another trend that will simply fizzle out.
The battle is still raging and time will tell, but one thing is certain: they are probably worth a look. The hype and the returns border on frenzy, with dizzying numbers. Virtual reality designer BEEPLE holds the sales record with 69,000,000 at a recent auction. But will all this last? Let’s take a trip into their magical world as it has shaped up so far.
First of all, what are these NFTs we keep hearing about lately?
The term stands for Non-fungible token, meaning tokens that are not interchangeable. Each one is unique. A dollar or a Bitcoin, for example, has the same value as any other dollar or Bitcoin, regardless of which wallet it sits in. NFTs, however, are unique, which gives them a higher resale value. Beyond that, their value varies depending on who owns them or the fame of whoever created them. A soccer card signed by Kylian Mbappe went for 180,000,000, while a similar one from Fulham striker joe Brian went for 7,000,000 dollars.
When they were created also matters a lot. CryptoPunks NFTs sell for 7,000,000 each simply because of their age. The first NFTs ever created sell at outrageous prices compared with today’s creations, even if the newer ones are visually leagues ahead (3D design, theme, final image, etc.).
An NFT is essentially the digital representation of an asset that contains information about itself, e.g. who owns it, when they got it, who created it. The NFT is recorded on a blockchain, which means the information it contains cannot be altered or destroyed.
As for their authenticity, the blockchain’s history guarantees it and easily proves that they are unique, and copies can never be used for sale again. The technical details are a maze, and there’s a frenzy around this whole thing.
You should definitely take a look at them.