Have you been hearing a lot about crypto assets and the concept of NFTs?

Let's delve into why they are such a hot commodity.

Firstly what does NFT even stand for!!!

NFTs stand for "non-fungible-tokens".

Ops. That doesn't make it any better.
"Non-fungible" more or less means that it is unique and can not be replaced with something else.

It is like a one of a kind sneaker, if you traded it for something else, you would be having something completely different.

So how do these "NFTs" work?

At a very level, most NFTs are part of the Ethereum blockchain (or any other blockchain for that matter).Ethereum blockchain supports these NFTs, which store extra information that makes them work differently from, say, an ETH coin.

Will it become something like art collecting?

Some people would be hoping so.Like whoever paid almost $390,000 for a 50-second video by Grimes or the person who paid $6.6 million for a video by Beeple.

But you can find and download the video that a person paid millions for. You can copy a digital file as many times as you want, including the art that’s included with an NFT.

Just like this.

But NFTs are designed to give you something that can’t be copied: ownership of the work.

To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.

What is the difference between NFTs and cryptocurrencies?

NFTs are often programmed in the same way as cryptocurrency, such as Bitcoin or Ethereum, is programmed, but that's where the resemblance ends.

Physical money, stocks, and cryptos are fungible, meaning that they can be exchanged for one another.

NFTs are different. Each has a digital signature that makes it impossible for NFTs to be equal to one another.

But why would you be willing to pay big bucks for something that just might amount to a trading card?

Sure NFTs are risky and the future is uncertain in that regard.

NFT’s value is based entirely on what someone else is willing to pay for it.

Therefore, demand will drive the price rather than fundamental, technical, or economic indicators.

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