NFTs

Non-fungible tokens(NFTs) have become widespread of late.These digital assets are selling for very high prices.Are NFTs the next big thing? Or are they just a bomb waiting to explode?

NFTs are digital assets that represent real assets such as videos, music, arts. They are traded online(often with Cryptocurrency).NFTs have been around for a long time:they've been around for about a decade now.They haven't always been popular though.Their widespread use today is because they're a more preferable means to buy and sell digital artwork. Just last year,the market for NFTs rose to a whooping 41 billion USD.Since anyone at all can view NFTs and even safe them on their phone,why do people bother to pay hefty sums for them? Because NFTs give buyers ownership of the original item using a built in code.

NFTs are crafted from digital objects which may or may not represent tangible items. These are:

Pictures

Paintings

GIFs

Videos

Music

Sports

Tweets

Designer Logos

NFTs X Cryptocurrency

NFTs share just one similarity with Cryptocurrency;they run on the same programming as Cryptocurrency.

Real life money and Cryptocurrency are both fungible,that is they can each be traded for the other. They also have the same value as in a 10 dollar bill is the same in value as another 10 dollar bill and one bitcoin is the same in value as another one bitcoin regardless of their origin. NFTs however are Non-fungible, hence two NFTs do not necessarily have the same value.