Would you pay millions of dollars for digital art? NFT's are the talk of the town right now, garnering hype from artists, sellers, buyers and collectors. Here we will shine a light on the mystery behind this high value cryptocurrency.
What is an NFT
What other cryptocurrencies represent monetary value, NFT's are most commonly used to represent digital works of art, like photos, videos or audio, including some unconventional art, like means tweets and albums.
What does non-fungible mean?
Non fungible basically means unique there is only one of its kind. Other crypto can be fungible like Bitcoin, where one bitcoin can be traded for the exact same thing in return. You might think of fungible cryptocurrencies like dollars, while NFT's are more like one of a kind, limited edition trading cards.
Why would you buy an NFT?
Buying an NFT is like buying original art, even if others can view it elsewhere, like buying an original Monet, even though there are countless Monet prints sold elsewhere for much, much less. The question of why is a little more complicated with NFT's though, since a copy of digital art is almost always as good as the original. When people buy NFT's it's to either support the artist for bragging rights or to have the rights associated with owning the art. Similar to a musician's masters. Well, anyone can stream or download the exact same music. Only the owner of the Masters can use it in a in certain commercial or promotional contexts.
Why is NFT so popular now?
NFT's aren't that new, the first NFT was created in 2014 and the garnered mainstream awareness in 2017. The interest in NFT's spike this year though, primarily the result of crypto millionaires and billionaires looking to diversify. A number of high profile NFT sales were made in the first few months of 2021. In February, the musician Grimes sold $6,000,000 worth of tokens of NFT art, and the neon cadmium animation sold for over $560,000 in March digital artists people's everyday is the first 5000 days was the first piece to be auctioned at Christie's auction house selling for almost $70,000,000. Also in March, Twitter's founder jack Dorsey sold his first tweet as an NFT for over $2,900,000.
What do you think our NFT is worth it? Will digital art collections last long?
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