NFTs & How They Are a Collectors Greatest Asset
Good Afternoon Blockchain pioneers, today we will be talking about Non-Fungible Tokens (NFTs) and the factor they will play in the crypto-verse.
---Disclaimer: I am not giving investment advice, I am only making you aware of the recent news of this cryptocurrency so you can better understand the coin, technology, and the overall effect cryptocurrencies are currently having in the world we live in.---
Let's get started!
Over the Easter weekend, I was fortunate enough to see family. Through the dinner my Great Aunt asked me about college, blah blah blah, THEN she expressed her opinion about cryptocurrency (She was not a fan). Well, she did not quite grasp the whole non-physical asset idea. My crypto-switch flipped on; I started to help her understand. I compared the asset to stocks. You don't physically own stock, but there is a contact expressing your ownership within the company. She said she understood but then wanted to know the difference between cryptocurrencies and Non-Fungible Tokens (NFTs).
First, let me bring into the definition of a Non-Fungible Token: "NFTs are digital assets that can be collected and are one-of-a-kind, verifiable assets that are easy to trade on the blockchain."
Are you all familiar with the first NFTs created? CryptoKitties?
CryptoKitties is an NFT where you can trade digital assets. When I was a part of a Cross-Reality Crypto Club, I was given a CryptoKitty to start my collection in my Enjin wallet. It is such a cute thing.
I digress, the reason I wanted to bring CryptoKitties into the light was that I compared the NFT to Pokémon cards. My Great Aunt understood Pokemon cards, so I went a little further.
Me-"You can trade, collect and bring to life the NFT just as much, or even more than the Pokémon cards."
My Great Aunt-"How are they worth money?"
Me- "Well, like any collection, some Pokémon cards are worth more than others. For Example, the most expensive Pokémon card is the First Edition Charizard. Collectors salivate at the thought of owning this card. The most this card had sold for is $220,000."
My Great Aunt-"Wow! Who would do such a thing?"
Me-"Collectors. As long as the card or any asset holds the value to the buyer, the seller can sell off this asset whether it be a Pokemon Card, CryptoKitty or any other asset."
For a 75-year-old woman, I am glad she knew as much as she did. She is definitely in the minority but I'm proud my passion is rubbing off to my family members. She knew I had an interest and did her homework (Shoutout to the National Public Radio).
CryptoKitties are yesterday's news though. Let's look into NFTs that are new, spunky, and could be the next asset you collect.
Are you all familiar with the new NFT Dapper Labs has been releasing? If you are a fan of the NBA you probably have heard about it. The NBA Top Shot is one NFT category serious collectors will hop in.
Question: What is the NBA Top Shot?
Answer: "[NBA Top Shot] is a blockchain-based platform that allows fans to buy, sell and trade numbered versions of specific, officially-licensed video highlights." (ca.nba.com)
Imagine you are a Lebron James fan. Arguably his number one fan. There are video clips of Lebron James dunking are ones that will be replayed for years to come. If you have $200,000 under your mattress, you, Lebron James fan #1, can own his most famous basketball highlights.
Don't get me wrong, NFTs are still in the developing phase for becoming a serious form of collecting and trading, but the idea is there. With cryptocurrency only gaining more popularity, NFTs are going to be legitimized and seen as serious assets with specific forms of value.
