Hold up 🧐🧐🧐 Let's talk about the new internet craze for a second.
Let's talk about Non-Fungible Tokens (NFTs). A lot of people have so much money now that they have decided to create and attach value where there isn't one. They are beginning to use the influence of real technology and its capabilities to do some crazy stuffs that they've always wanted to do. Please don't mind me, this NFT of a thing makes me vex everytime I talk about it. Okay, let me make it very simple to understand so we can all try to make some sense of it.
NFTs is a combination of two words, Non-fungible and Tokens. Remember in Economics class when we were taught about the two types of commodities, Fungible and Non-Fungible, this is where it comes to play.
Fungible means there is more than one copy of something and it can be replaceable while Non-Fungible means only one copy of the thing exists and it is irreplaceable and irrecoverable once lost.
TOKENS. Similar to the token in your dictionaries, this relates more to blockchain technology and it is using units of cryptocurrency to make purchases or procure stuffs online. There you have it, Non-Fungible Tokens (NFTs).
So I ask myself, what is so peculiar to NFTs, how is using millions of dollars to buy Jack Dorsey's (Twitter CEO) first tweet or a digital art collection reasonable?
Like I said in the beginning, it is all just fuss. Come to think of it, you do not own this commodity or substance you pay huge amount for, all you own is a digital receipt of the existence of such substance so why pay. huge amount for that?
All of this boils to the relationship between human psychology and value. NFTs in layman's illustration is similar to an art work which we think and feel has intrinsic/inherent value, a value and meaning that we attach to it when it is all just colour on canvasses.
Anyways, don't be surprised to hear that someone has paid millions of dollars to buy my thought process, it is Non-Fungible 🤣🤣🤣.
