It’s no question that there are some strange things happening with the internet right now, especially in the world of art. Now, the internet has provided a much-needed base for all-things-knowledge based from videos on what deodorant to purchase all the way to what psychological effects colors have on the mind. However, the world of media is having a strong back-and-forth debate right now on the concepts of NFTs. It’s no secret that there is something of value to them, but what exactly are NFTs?
NFT stands for non-fungible-token. “Non-fungible” essentially means that it is a unique item that cannot be replaced with something else, more or less. For example, if you have a bitcoin and wanted to trade it for another bitcoin, you would have the exact same value, a bitcoin. Nothing has changed. However, if you owned a Monet painting or even a rare Pokemon card, and you wanted to trade any of the items listed, then you would have something different in overall value. Only one of each exists in the world in terms of its origin, so nothing else would be like it.
Now, on a different level, the majority of the NFTs out there are backed by crypto called Ethereum. Ethereum is a cryptocurrency similar to Bitcoin, Dogecoin, Shib Inu, and many more. However, Ethereum stores unique information about each NFT, which means that they work differently than simply buying a Bitcoin or Dogecoin. It’s important to understand that because Ethereum is not the only cryptocurrency out there, other cryptocurrencies can back NFTs as well. Although Ethereum is essentially the main headquarters for NFTs, it is not the only cryptocurrency that backs NFTs.
Now, you may be asking yourself “why do NFTs need to be back by Ethereum or any cryptocurrency for that matter?” The reason is that NFTs are essentially cryptocurrencies themselves, but in the form of artwork. In order to have your artwork as an NFT or crypto, it needs to be supported by a host that stores its unique information. This would be the same process as buying stocks in the stock market. In order to buy stocks, you can’t just walk up to Nike and tell them “I want five shares right now.” No, you need a broker. These brokers typically include Robinhood, Coinbase, and even CashApp. Once you have an account with any of these brokers, you can search for companies and purchase shares. This is the same process with NFTs, however as the creator or artist, you need a cryptocurrency to back your artwork, like Ethereum or other cryptocurrencies out there. That’s you would then sell it.
Here’s why it’s beneficial to purchase NFTs and hold on to them: you can make a ton of money. Of course, nothing is guaranteed and the risk of gaining money is the same as the risk of losing money, however, it is a smart investment to make nonetheless. NFTs operate the same as stocks; they increase and decrease in value over time based on the overall desire for ownership. Same thing with physical artwork like Monet paintings. The more people that want them, the more the value increases. On the same note, when you purchase an NFT, you are the sole owner of that digital artwork. There is nothing else like it and no one else can own it unless you sell it to them. You also get a digital copy of whatever media the artist chose to create. The next question you may ask is, “Well what if people just screenshot the NFTs?” That means nothing. They don’t own it, so they can’t sell it. Especially since it’s backed by a blockchain, you can only purchase through a broker that offers those services, so your asset is protected.
Now that we’ve covered the basics, let’s talk about where you can purchase NFTs.
Coinbase offers a variety of NFTs, even one of the most popular ones, Bored Ape Yacht Club.
