The buzzing acronym stands for “non-fungible token”. What is fungible and non-fungible? Time to scratch Economics book😜
Fungible are those things which can be substituted like we can exchange 10 bucks for another 10 bucks or may be for two 5 bucks. On the other hand, non fungible are those that are unique of it’s own. For instance, the bat with which Sachin scored double hundred is non fungible.
NFT has been trending over internet for the last week. Through, NFT one can purchase a digital item. One may argue here that we can easily copy the digital item let say for an image why pay such a huge amount? A copy is a copy. There will be people who are willing to pay huge amounts for the original stuff. That’s how collectable items like Gandhiji’s glasses got sold for $340K. Collectors value original stuff and even pay a huge amounts.
Recently, the tweet on the left got sold for a whooping $2.5 Million. It’s the first tweet, tweeted by Jack. It may sound funny why to pay such a huge amount. But that’s how the world operates. It’s time to be a digital collector 😆. Jokes apart but it’s a high growth industry.
At least in the physical world you can touch the bat or the painting whereas in the digital world it’s basically the code 0’s and 1’s. Anyone can see the tweet any time. It’s not even private stuff like glasses. What are the buyers exactly getting then? Apart from owning the piece of code, a digital asset, the buyers are kind of getting the dopamine of having an internet trophy. In coming days, it might be the future of e-commerce. It totally depends on mass users where it want to take the route. Everything is psychological…
That’s it for the day!
Cheers to the cohort members for continuing the Tiny Project for Day 7!
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