Money·2 min read

NFTs Explained in 60 Seconds

January 6, 2022

Why just download a photo or watch your favorite video on YouTube when you could spend millions of dollars to own the OG version? Say hi to NFTs.

NFT stands for "non-fungible token." 

Non-fungible means that it’s unique and can’t be replaced. Like your DNA or a custom wedding dress.

NFTs can be anything from Jack Dorsey’s first tweet to the original video of “Charlie bit my finger.”

Think of it as the new take on collectables. But digital.

And they're blowing up. Big names like Snoop Dog, Tom Brady and Martha Stewart are rolling out their own collection of NFTs.

Even Disney’s opting to join the game. They’re releasing their first official NFTs of characters like Elsa and Wall-e.

But how do they work? When you purchase an NFT, you get a token that confirms it's yours.

The tokens are essentially digital contracts that preserve an investor’s ownership of the unique item. There can only be one official owner at a time and there’s almost no chance of modification, copycats or loss.

And once you own an NFT, you can hold onto it like an investment and try to sell it in the future for a profit.

So what’s the skimm? NFTs could mean a more democratized marketplace that gives all content creators a better shot at selling their work and earning their worth — without a big business middleman taking a cut. But whether they’re worth investing in is up to your discretion.

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