WHAT IS AN NFT?
NFT is also known as non fungible token. So , now it give us more problem, what it means?
I want to make it simple for you, therefore, I am going to write like a layman.
To understand NFT, you must first understand cryptocurrency.
Cryptocurrency is a digital token. Meaning, it is not physical. It is meant to replace "money" in the real world.
When country print money, the value of your money goes down. That's why you need some asset to store your value. For example, you can buy property or invest in company via share and stock. But that might cost you a lot. Therefore, the easy way is to buy currency that can store value.
But , can cryptocurrency store value? Is it a scam?
Will, you can check out that funds in US are buying cryptocurrency. There are index for cryptocurrency. These type of activity mean that they have to hold a large amount of crypto. Well, event Elon Musk is buying and creating it.
Now, will crypto store value? Not sure. Some go up and some die of. That part is something else , so I will not discuss here.
All this crypto are fungible. Meaning, you can have multiple of it. And there is something known as mining. When you transfer your token to other people, someone need to help you process the transfer. In return, you will pay him some "money" in term of token. This is call mining.
Non Fungible token.
On the other hand, non fungible token mean that there is only one. You cannot mine it. When you transfer, you have to pay your transfer free with other type of token.
There is another way to store value beside buying things like property. That is to buy art . Once the art pieces are very expansive, hard to sell if you decide to, unless it a very popular piece.
Now, NFT art is the digital counter part of the real world Art. With the ease of buying and selling, it become something more valuable, something that not only to store value, but also will appreciate in value. Its too new to discuss what will or will not become valuable. But there might be a change that the crazy increase in price in cryptocurrency will happen in NFT Art. But that is not within what we are going to discuss here.
The famous platform for NFT is opensea.
Opensea is like Ebay for NFT, it's the biggest market for NFT.
Click to check out what id on opensea buy page.