NFT’S: Why Are They Becoming So Popular?

NFT’s have been all the rage over Twitter and social media with many NFT’s being sold for millions of dollars. But what are they and why are they so valuable?

First and foremost NFT stands for Non-fungible token, and this is all referring to cryptocurrency. Fungible means replaceable, such as a $20 bill can be replaced by another $20 bill. So if something is non-fungible it means that it’s not replaceable., so these NFT’s are one-of-a-kind digital pieces of art.

NFT’s can come in a variety of different ways with the most popular being in digital art, but they could also be music, videos, digital cards, and anything digital. But can’t you just download the image or video the person just spent millions of dollars buying? Well, you could, but the whole thing about NFT is that you gain part ownership of the NFT. So it’s similar to buying into a stock where you buy into it and it still has value you can sell for profit later on.

This is why it’s considered a cryptocurrency, it’s purely digital and can be moved around for monetary gains.
An example is the CEO of Twitter, selling the first-ever tweet on Twitter as an NFT for over $2.9 million. And the biggest sale is a collection of art made by an artist named “Bleeple” for $69 million. This might bring up a question on who is keeping track of all this stuff and who owns what. Well, NFT’s run on a blockchain, which is an online database specifically made for transferring and holding records of cryptocurrencies such as NFT’s.

But this is what a lot of people take issue with NFT’s, they aren’t good for the environment.
It’s a weird connection to make, with online digital currency being bad for the environment. But those databases take a lot of energy to produce and maintain NFT’s, with the machines create millions of tons of carbon dioxide emissions.

The whole NFT craze is still underway and it’ll be exciting to see where it goes and whether they can become more environmentally friendly and a staple of merchandise and marketing in the future.