As society dives deeper into the digital realm, non-fungible tokens (NFTs), have begun to take the investing and art world by storm. An NFT is a non-replicable digital item, like a one-of-a-kind trading card or even an iconic meme. Anything digital can be turned into an NFT, from an art piece to music to even something as obscure as the founder of Twitter Jack Dorsey’s first tweet, which he sold for $3 million. Most NFTs are also connected to the Ethereum blockchain, which is a type of cryptocurrency like bitcoin. This blockchain is where most NFTs are stored, though other blockchains can keep them as well.
Ownership gives NFTs their value. Anything online can be copied and reproduced, but an NFT is the original version of the digital item. This is why NFTs have taken the art world by storm because it has opened an entirely new lane for fine art collecting. An NFT can be sold at any price. Like Pokemon cards that have recently skyrocketed on the secondary market, most of the appeal to buy an NFT comes from the assumption that it will eventually become more valuable in the future.
NFTs have now become a hot topic that wealthy investors and celebrities alike have begun to explore. It has also created a new avenue, beyond traditional physical pieces, for artists to consider. The digital artist Beeple, for example, created a new digital art piece every day for 500 days, then sold that NFT collection in an auction for $69 million. While some art purists fear the craft is venturing too deep into the digital world, NFTs allow space for art that can’t deteriorate over time. Selling and buying NFTs is a lucrative business that has possibly marked the future of collecting.