All you need to know about NFT
8:13

All you need to know about NFT

Tech Industry
NF T's at the world buzzing thanks to the insane prices they're selling for. What are they? What do they do? And should you be paying attention to them? What's less money for them? Here's what you need to know. In the simplest terms and NFP or non fungible token. Is a certificate of authenticity for a digital file. Now that digital file can be anything, it can be a tweet, a JPEG, a gift, a YouTube video of a basketball player dunking, anything. 30 million gift from the internet of neon cat, but an NFT allows one person to own the neon cat. Put in quote marks because they create a sort of copyright. So, we're talking about ownership in a pretty limited terms here. Nf T's are printed on blockchains, which are essentially unchangeable digital Ledger's that everyone can access and verify. So, with, for example, I dropped $2.9 million on jack Dorsey's first week, by the way, it's on totally dead. That then goes on to a blockchain that everyone who wants to can check and say that indeed I own that NFA if you're into that kind of thing. So it's not that complicated and if people were dropping the cost of a cup of coffee on NFTs, they wouldn't really be making this video. But since people are dropping the cost of a four bedroom home on NFTs, It's gonna need some explanation NFT non fungible token so essentially it's just a token that's not fungible. Easy done. Let's back up. Fungible assets are interchangeable with each other. For instance, gold An ounce of gold is worth the same price whether it's from a coin in Australia, or a nugget in California. Bitcoin is also fungible. for the price of one bitcoin is volatile from one moment to the next. At any given moment, one bitcoin is worth the same amount as any other Bitcoin. So, as you might expect, non fungible assets are not interchangeable with each other For instance, take cars. One car is not worth the same amount as another car, even if it's the same make the same model made in the same year. Basically, it's fungible assets have a set price, non fungible assets our pretty much whatever anyone out there is willing to pay for them. To the gentleman for two pounds. This is why all collectibles are considered non fungible. And that's why a pair of limited edition any ID data sneakers can sell for 1000s of dollars, and why a first edition chars are first one caught, consult the hundreds of 1000s of dollars. You've probably seen the headlines already, but let me just go through some of the crazier NF T cells just in case you haven't Remember bad luck, Brian, the dude in the photo of that meme sold that meme as an NF T for $36,000. The NFP of the neon cat GIF I told you about before that sold for $590,000. What's more, an enterprising chap in New York recently sold a 52 minute audio recording of his five as an MSP. $400 I know 400 isn't that much when we're comparing it to the 1000s and hundreds of 1000s we just talked about for the command but maybe the most illustrative example of this whole craze is this slightly disturbing artpace that makes us Pepe the Frog with Homer Simpson. [MUSIC] If sold for $320,000, but the price isn't what makes this one interesting. What's interesting about it is that the guy who just sold it is not the guy who created Robbo. He bought it in 2018. But $38,000. That's a tidy profit 38,000 to 320,000. Who wouldn't? And that's exactly why most people are playing this game. It's important to note here that owning an entity is not the same as owning the piece of work. By the NFT does not grant you ownership or copyright rights. It just grants you the NFA which is kind of bragging rights. Some of the people buying non fungible tokens are legitimate blockchain enthusiasts who see that technology as the defining technology of that era. I see NFP as an early application of this revolutionary technology. But most of the people flipping NFS are doing it to make money. Very familiar. But that's not to suggest that NFP is a completely useless, they do have some utility. And like most technologies, they're not inherently good or bad. It's really just had that being used. The biggest NSP sell yet is people's everyday because your 5000 Digital paintings that was sold as a college via Christie's auction for $69,000,000.60 $9 million for an NFA. Yeah, that's crazy to me, but it's certainly slightly more crazy than $40 million for a blank blue Canvas, which is something that also happened at a higher auction. What NF T's do if they do anything is create artificial scarcity. That takes something that you're actually paper free on Google and turn it into something that someone out there is willing to pay money for. That's great for an artist like people who's a real artist with a real following. And he's done what for real companies like Apple Louis Vuitton and the Super Bowl. And that's also good for a whole bunch of other digital audits whose work has historically been hard to monetize because it can mostly be downloaded for free on Google. But again, when entities are being used to sell thoughts, you know, everything isn't quite right at internet.com. That leads me to three things you need to be aware of. Scams, just like cryptocurrency with scams are ubiquitous. There are gonna be scams everywhere in NFT. So that could be someone pretending to be an artist selling an NFT for work that are actually own. It could be someone selling an NFT for something of which there is already another NFT. Point being, if you're seeing all the headlines and you wanna get in the NFT game, to flip a few and earn a few thousand dollars. Just be aware that there's a pretty significant chance you'll lose your money. Second is really bad for the environment. What teams are really inefficient, they take a lot of energy to do pretty much anything. And it's for that reason that more co2 is emitted from computers mining Bitcoin and other cryptocurrencies. Then the co2 emitted by the entire countries of say Argentina and Switzerland. And finally, a lot of the hype that's surrounding NF T's can be credited to people who already own quite a lot of cryptocurrency. For instance, Jack Dorsey. He sold his first tweet as an NF T for headline grabbing $2.5 million. Jack Dorsey Square, which owns around 8000 bitcoins, which are worth over $400 million, and the guys who bought bagels every day for $69 million. He's a professional cryptocurrency investor. Now there's nothing wrong with any of that, but just know that the NFP bubble that we're currently seeing Being pumped up advertently or purposefully by probably a relatively small amount of people. So our NFP is a flash in the pan. That's exactly what people said when the Bitcoin bubble of 2017 when the price was around $15,000 burst and the price went to $1,000. Now some years later, Bitcoin holders between 50 and $60,000 The market cap that exceeds a trillion dollars in crypto currencies as a whole bunch of 1000s and 1000s of what are called alt coins. These alt coins are basically crypto currencies that are not aetherium or Bitcoin the two biggest. They're essentially penny stocks for cryptocurrency except they don't really do anything. Even within the community they often called **** coins because of how useless they are. But despite that every week, handfuls of these currencies rocket and then plummet, based off community sentiment alone, just recently, I saw on go from $2,000 all the way up to $4,000 within the space of about 10 days. It sounds like a game played with flippity floppity of monopoly money. But the real world consequence is that some people get very rich when these coins, rocket, and then they lose lots of money when they inevitably plumb it like that one did from 4,000 all the way back down to 200. So despite the fact that NFTs make no sense, but people spending six figures on YouTube clips that you and I could watch for free. That doesn't mean you should expect them to go away anytime soon, either.

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