Dallas, TX – Unless you are living under the rock, you have heard of NFTs (Non-Fungible Tokens ), or maybe heard about Justin Beiber bought a picture of a monkey worth $1.2M dollars. or even Gary Vee, a well-known Entrepreneur who also sells nonsense cartoons he made on napkins called “Gary-Vee and Friends“, It gets even worse, Instagram Model, Stephanie Matto, sold “Farts on a Jar NFT“.
The Premise is that, If you own an “NFT” or this “Unique digital asset” ( More than often computer-generated ), you get exclusive access to something either virtually or in real life. For example, Tai Lopez, an Internet marketer, promised his NFT owners to access to hotels and restaurants exclusively for them, but he didn’t even sell enough of these to make it worthwhile for him to afford to build the restaurants or hotels that he promised.
What Really Is An NFT?
NFT or Non-Fungible Token, is the simplest form, a proof that you own some sort of “digital assets” and that asset can be anything, an image, audio, a picture of your face – Pretty much anything that you can Digitalize. You put that digital asset on something called “BLOCKCHAIN” ( Think of it as a public excel sheet ) and the ownership of a specific digital asset is assigned to an “address” that is owned by people. The word “Non-Fungible” means that this token cannot be replaced, or substituted. It’s “One of a kind”
For example, If you take a selfie of yourself and put it on the Blockchain assigned to you. This means you are the sole owner of this unique image, but you could sell this image to another person and then the “owners” column would show that person as the “current owner”
The reality is that, even if you buy a popular NFT like BoredApe, The blockchain only has a hyperlink to that image that you bought. It doesn’t even contain a copy of that image. Just a hyperlink. When you are buying an NFT, you are buying a hyperlink to something that you don’t even own.
How Are NFT Generated?
NFT can be generated in a few ways. Once you have the digital asset that you want to turn into NFT, you simply go to NFT market places like OpenSea, Axie and upload it, then pay some fees called “gas fee”.
The better way to automate the entire process is like what most Image NFT sellers are doing. They are generating these images using a computer. They create layers of images and just shuffle them around.
Why Do People Think NFTs Have Value?
NFT sellers use the oldest trick in the economy 101 book: ” Supply and Demand” They “mint” or create limited numbers of these NFTs to show scarcity and incentive for buying these NFTs. What do these incentives include? Mostly nonsense things. Ability to have lunch with the NFT owner on a plane ( Tai Lopez), access to a certain zoom call, or access getting a 20% discount on their merch shops. The current space of NFT is just a cash grab. There is nothing backing the NFT.
Should You Invest In Buying An NFT?
The short answer is No, but it depends. If you are buying NFTs like you would with long-term stocks, then you should simply avoid them. If you are just speculating and wanting to quickly get a return then just know that you need to sell it off to another fool who thinks NFTs are the next big thing.
Does NFT Have A Real Use Case?
Yes, NFTs have real use cases as well. For example, Ticketing for events and travel. Car records management system, Real Estate ownership proof like a deed.