What Is A NFT?
An NFT, or a non-fungible token, is an item that has unique properties so it cannot be interchanged with something else.1
NFTs are one of a kind items in the digital world that can be bought and sold, but they aren't tangible. For instance, the original Mona Lisa painting is one of a kind. You can take a picture of the Mona Lisa or buy a print of it, but there will only ever be one of the original painting.
How Do NFTs Work?
In the digital world, NFTs can be easily copied or duplicated. NFTs also contain smart contracts that may give the owner (an artist, for example) a cut of any future sale of the token. Nothing is stopping people from buying this digital art. However, the buyer of the NFT owns a "token" that proves that they have ownership over the original piece of art. So, there is value in being the "owner" of the digital art.
How Much Are NFTs Worth?
As shocking as it may be, people are paying millions and millions for NFTs. In fact, Twitter co-founder Jack Dorsey listed his first ever tweet for sale, with bids reaching $2.5 million.2
Are NFTs A Scam?
Although some people are making a decent amount of money through collecting NFTs, investing in NFTs is not an advisable thing to do unless you have excess money to throw around. Instead, focus on investing your money in reliable assets.
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