Everything you need to know about NFTs
You’ve probably heard of the acronym NFT at some point. It’s popping up in headlines left and right, and if you follow financial publications, you’re probably well-acquainted. It’s the red-hot investing craze stealing the nation’s attention.
But what is it, really? Well, much like anything relating to digital cash, it’s a little complicated. Speaking of which, tap or click here for a crash course in cryptocurrency.
No worries, though — we’re here to lift the fog. Today we’re diving into the weird world of NFTs: what they are, how you can buy them, why they became so popular and more.
First off, what the heck does it even mean?
The acronym NFT is short for “non-fungible token.” If you have no clue what fungible means, it refers to interchangeable goods. Basically, it means replaceable — so if something is non-fungible, it’s non-replaceable. So if you buy a non-fungible token, you’re buying something that’s one-of-a-kind. Nothing can replace it.
With us so far? Here’s an example: one of Kim’s favorite snacks. Kim loves our sponsor, Humann SuperBeets Heart Chews, and always keeps a bag of them on her desk. During video meetings, if anyone mentions gummies, Kim’s face will light up and she’ll whip out her bag to show off her pomegranate gummies.
When Kim wants to buy a bag, she goes on the internet and grabs one for $35. But the bag she buys isn’t unique — when she buys it, she doesn’t care which specific gummy bag Humann ships to her home. She just wants a bag.
If some SuperBeets-loving burglar were so hungry for the sweet pomegranate flavor they broke into her office and snatched her bag, Kim would want a replacement. Instead of sniffling over the loss of that specific bag, she’d be happy with her new one.
That’s because bags of SuperBeets Heart Chews are all the same. They’re replaceable. Or, in other words, they’re fungible.
As you can imagine, non-fungible goods are way more valuable than fungible goods
Compare Kim’s favorite chews to a treasured item she has in her home: a BBC mic from World War II. Her husband Barry bought it as a gift four years ago. After watching “The King’s Speech,” Kim was fascinated by the unique mic used in the movie.