Some of you might already understand crypto & NFTs. If so, feel free to skip to the next section.
For the rest, here’s a breakdown of my current best understanding 👇
Mona Lisa Overdrive
NFTs (non-fungible tokens) are digital files (jpg; mp3; etc.) with one additional property: you can objectively verify which version of the file is the original.
- 💾 A regular jpg can have infinite copies = Abundance.
- 🖼 An NFT jpg can have limited copies = Scarcity.
In the crypto community the logic goes as follows:
Old world: I buy the Mona Lisa (painting) and an art specialist can verify that it is the original version
New world: I buy the Mona Lisa (jpg/NFT) and a set of servers can verify that it is the original version
This is why NFTs are currently considered as a new version of a collectible (aka “art”).
People assign a subjective value to the NFT - similarly how people have assigned value to a canvas with a bunch of paint on it.
Do I own an NFT?
To me it still feels like a slightly-rebranded gambling game.
I don’t play slots. I don’t play NFTs.
So why am I writing about this?
- Someone just sold a jpg of a 🪨 for $1.3M.
- It feels like another tulip mania.
- It’s interesting to watch.
There’s another application for NFTs: Settlement of overdue invoices 😂