It took me a while to even begin to comprehend the concept of a digital currency – and I'm still clueless about blockchain. Now, the concept of something else based on blockchain, which is not cryptocurrency positively gives me a headache. This is an NFT or a non-fungible token. It is defined as “a non-interchangeable unit of data stored on a blockchain, a form of digital ledger that can be sold and traded”. Understood? Me neither.
Unlike cryptocurrencies, each NFT token is uniquely identifiable. It is in the form of digital images, video or audio.
So what is the value of these NFTs? Well, the answer is – whatever it is perceived to be by the people that deal in it. We could also ask, what is the value of paper currency? These are just pieces of paper that have value because of what those pieces represent to people.
NFTs are seen as collectibles – people will, for instance buy art created by artists they admire or support or see as having value for other reasons.
These are thought to be ‘speculative assets’ – which is anything that is bought in the hope that it will one day become valuable. I found this short video weirdly fascinating – I can understand the need to ‘own’ something like this.
There are those who call NFTs a bubble that is bound to burst soon, but many would disagree. In December 2021, The Merge became the most expensive NFT ever to be sold; fetching a staggering $ 91.8 million. 30,000 collectors became joint owners of that NFT.
An artwork called the First 5000 Days by Beeple. Some people - including artists and creators - believe NFTs are the future; and a legit income source.
This rather disturbing looking NFT sold in the secondary market for over six million dollars a year ago.
This is yet another hashtag manufactured for marketing.
By trending the hashtag, more people become aware of NFT and will consider buying/ investing.
Someone who sees NFTs in their future may be interested to check out Fully Faltoo NFT – where people can register to know about auctions, bid on, own and trade in NFTs.
The needs and priorities of most Indians are different – and much more basic than buying NFTs. Fully Faltoo or otherwise.
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