Everything You Need to Know About NFT’s and Cryptocurrency
Has your news feed been bombarded with articles about NFTs over the last few weeks and months?
Did you know that one NFT just sold for $69 million dollars at the world famous Christie’s Auction House?
Wondering what the hell NFTs are and why everyone seems to be obsessed with them?
No worries… we’ve got you covered.
Dan and Mike are going to explain exactly what NFTs are and why you should be paying attention to them. They’ll also dive into what blockchain and cryptocurrency are all about because these digital currencies and investments are the wave of the future. Remember when the internet first came out and people thought it wouldn’t last?
You’ll learn SO much about what the future looks like so make sure to listen and share it with your friends!
An NFT is a Non Fungible Token. A Non Fungible Token is described as “using relatively nascent technology that certifies the authenticity and ownership of a token through a digital ledger of all its past transactions.” In other words a blockchain, forms the backbone of cryptocurrency.
This technique is gaining an enormous amount of popularity because it’s so flexible in determining and proving the ownership of an asset.
The digital world is exactly the same as the physical world in the respect that certain things are more valuable than others. It's also a medium for great creativity. The entire music industry has shifted over to the digital world. Record stores don’t exist anymore because it’s not a convenient way to sample music but with digital platforms like iTunes and Spotify it’s super easy to sample and download whatever you want instantly.
Here’s the thing… The rules that govern property in the physical world don’t apply in the digital world. The creators of physical things have been at risk in the digital world because it's so easy to copy anything.
How do you know if things are real or not? NFTs are a digital version of property.
The word “Non Fungible” means one of a kind. On the other hand, the most fungible thing in the world is an American $100 bill. If you look at world trade, 85% of all transactions are done in American dollars because it's fungible. $1 gets you something, it doesn't matter where you are.
Non fungible is the opposite because there's just one of them. You can have copies of it, but ownership resides with one person.
This is how a digital artist sold his NFT at Christie’s for $69 million dollars.
Then there’s blockchain. Without it you have no non-fungible tokens and assets because you can't prove who the owner is. The blockchain is absolutely crucial. You had to have it in the digital world or there would be chaos because you’d have no way of proving the authenticity of a “one off.”
Some of the practical applications are if you own a digital asset, now there is a mechanism where you can set up a rule in the blockchain for monetizing contracts.
For example, every time someone sees a piece of art, the owner could get a fraction of a penny. If someone listens to a song that is owned by someone, they're getting a fraction of a penny. A digital contract in the watching governs the rules and makes this happen automatically.
Let's pretend you're a musical artist or any kind of creator of intellectual property. You could go out in the digital marketplace and say, "I'm looking for partners. I'm going to create something you can invest in." In the blockchain, every time someone reads it, you're going to get a fraction of a penny. You basically become a business owner.
This is going to turn the entire world of money raising upside down. You could build this mechanism for paying your partner's dividends and it won't go through Wall Street any longer.