What are NFTs? Why are they worth millions suddenly..?
How about Selling your tweet as NFT. Silly? Yes.
Is it really Insane out there Or is it just me?
Don't worry, we got you covered!
Let's Start our fun filled educational ride down.
This Digital Art was Sold for $69 Million. I'm not shouting, you are!?! We will talk more about this later!
NFT abbreviates as Non-Fungible Tokens. To tell you what is that? Let me explain What is 'Fungible'?
Fungible means they are not unique. Suppose I can exchange with you Five 100 dollars with One 500 dollar note Or a BITCOIN. That means their value can be matched. You can equal the value of one with other. Got it?
What is 'Non- Fungible Token'?
- Non-Fungible means Unique. They are One of a Kind.
- They cannot be valued equally with anything. Yes, they are a single pieced.
- If you own one, you are only one in the World! Yes.
- For example like Monalisa painting, You can take a photo or make a duplicate of it. But there will only ever be one Monalisa Painting by Davinci.
- While Answer to the Digital Currency is given by Cryptocurrency and Now the digital art is taken to another level by NFTs.
- Yes, you may have a doubt the digital art is copied and made duplicate countless times in the internet. Not so fast...Bro!
- That's where the Non Fungible Tokens come. The digital art is "Tokenised"...And the art form is given a digital certificate to ensure the authenticity of the original.
Enough with the Basics...Lets get to it's work.
How does an NFT Work?
- At very high level, Most NFTs are part of the Etherium Block chain. You know what is a Ethereum right? No. Okay it is another Cryptocurrency like Bitcoin.
- The Ethereum Block chain stores information. And other Cryptocurrencies also started their own NFTs too.
- The digital collectible information distinguishes from each NFT to another NTT making it impossible to duplicate, or copied.
- The Vast Majority of Tokens were built by 2 Ethereum tokens i.e ERC-721 and ERC-1155.
- Recently TRON introduced NFT standard TRC-721.
Positive Sides of NFT
- A NFT cannot be destroyed. All the data is stored in Block chain in the form of Tokens. No token can be destroyed. Cool!
- Let me tell you something. When you buy a CD of a movie. You don't own the movie. You just purchased license to watch the movie.
- When you buy an NFT, you are the owner of it.
- NFTs cannot be divided. Like Coins are divided into Dollars and Cents. And Bitcoins are divided into Bitcoin Santoshi.
- NFTs cannot be divided into smaller things. They come and remain as a whole Item.
- NFTs can be Verified. This comes from the benefit of Cryptocurrency block chain, where the data stored in it can be verified and traced back to the original artist, no need of any third-party mediator.
Negative Sides Of NFT
- Heavy Energy Consumption. To give you a glance about the issue. Read the Next point.
- The Annual Energy of Ethereum Block chain where these NFTs are stored are what a small country like Bahrain uses. YES!
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| Jaoine Lemercier NFT |
- JAOINE LEMERCIER, a French Digital Artist Made 6 series of NFTs. These NFTs sale Consumed more than what the Studio uses Energy in 2 years. Got it? Yes.
- Let me tell you the Irony here. He is a CLIMATE ACTIVIST! He fought against Coal Mining, projecting lasers against excavators. He almost reduced his electricity usage by 10% a year. And tell you what he did it.
- And all his efforts became invain in few months.
- The Sale of his NFTs for 10 seconds for thousands of Dollars consumed 8.7 MW hours of Energy which is equivalent to 2 years of Energy use in Lemercier's Studio.
Why Do NFTs worth So Much?
I don't know Man. You should ask Jewelery lovers like Diamonds Or Platinum Or Gold. Does that Shiny Metal need to be worth that much? Does wearing them show your status! Yes. Likewise. Although NFTs cannot be wear but they are worth much more than them. To help you I will quote PLATO.
"Beauty Lies in the Eye Of Beholder."
Like all the things in the Market, Supply and Demand are the key market drivers of the Price. Due to its Uniqueness, Investors and Collectors are prepared to pay a lot of money for them.
Most Expensive NFTs.
I'm going to list highly Absurd Digital Art ( I feel) sold for huge loads of money.
BRACE YOURSELVES. Here we go....
1. The BEEPLE NFT
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| Sold For $69 million |
Yeah, I asked you to remember the Beeple NFT in the beginning of this post. Did you remember? Don't hurt my feelings..This was brought by an Indian Billionaire Vignesh Sundaresan and he says NFTs and Cryptocurrency is the future.
2. The Rainbow Cat
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| Sold For $590,000 |
This Nyan Cat meme went Viral in 2011 and now the original owner Sold it for $590K. I too like this Flying Rainbow Cat but not enough love for $590,000. Clearly NFT is Rich people's game.
3. Jack Dorsey First Tweet
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| Sold For $3 Million |
How about Selling your tweet as NFT. Silly? Yes.
Meanwhile Jack Dorsey, CEO of Twitter sold his first tweet for $3 Million. The winning bidder is a guy named Sina Estavi. Jack Dorsey donated the money to Africa Health Care in Bitcoins.
4. Crypto Kitty NFT
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| Sold for $170,000 |
I love Cute kitten Images. But not enough love for $170,000. The image is like " Do I Really Worth $170K". Yes, you are Mr. Crypto Ridiculous Kitty!
5. Beeple's Video NFT
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| Sold For $6.6 million |
What Say..? This Video was Sold for Huge loads of money. I have the video of what person who bought it and other countless people have it too. What's the difference..? I don't want to educate you about Original and Duplicate.
Silly? Yes.
Absurd? Perfect!
Criticism Faced By NFTs
- NFTs are Bubbles about to Burst. Well, there are people who say the NFT market is going to Implode.
- NFTs are a hoax. Scam. Whatever! There are people who claim this is fraud.
- Block Chain Technology is accelerating Environment depletion. And it is high energy consumption.
- NFTs are "House Of Cards". They are going to end in a Decade.
- As much as there is hype, there is criticism too. Careful of Scam sites too while buying.
Summary
Lazy people, here is what you need to know!
If you're an Artist?
Congo! You can have higher access and value to your digital Art like never before. You can bid your Art. Whenever you Art is sold or changed hands, you will get a percentage. Sky is the limit for you!
If you're a Buyer?
You have My Respect Sir! You are encouraging Art and Artists. Now you can Buy any Art, you wish like and without involvement of any third parties.
If you're a Collector?
If you're using Digital Art like Stock. Means Buying at lower price and you want to sell for a higher price in future. Umm, Okay your wish!
One thing is for sure, NFTs aren't going anywhere. They're going to stay here for a long time. Grab your e-wallets!
This article is educating you about NFTs to the best of my knowledge. Check out more here.
Happy and Safe Trading!
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