NFT stands for Non Fungible Token, and the token is a unit of currency in the blockchain chain. NFT’s purchases are made with virtual currencies (Ethereum, Bitcoin, etc …), and what is purchased is a certificate of authenticity of something, which can be a tweet, a digital figure, etc …
It is not something physical, but something virtual. The one who buys it is the “only” owner of that something, of which others may have copies, but not the original.
It is a new concept and not easy to understand, but one that is experiencing expansive growth, and things are being bought for hundreds of thousands of dollars.
As an example, the first twitt in history has been auctioned and the price has been higher than 2.5 million dollars. Someone may think that it is absurd, yes, but someone has paid for it.
More than 6 million dollars were paid for the image in the photo below
As I am not an artist and I do not have much money, for me this is difficult to understand, but there are people for everything, and the world of collecting things is very special.
An original painting by Picasso is worth millions and a well-made copy of the same painting is hardly worth anything.
In the digital world it is similar but a little more complicated, as there may be many copies exactly the same as the original, but only one has the original, the one who has paid for it, and has a digital certificate that proves it.
In the real world things can be exchanged. A 20-euro bill can be exchanged for two 10-euro bills or a 20-euro bill.
But in the NFT’s it is not like that, because it is a “non-fungible” and it cannot be exchanged for another of the same value; It is something “unique” that can only be bought or sold, and that only one person owns in the whole world.
That is the concept.
What the owners have is a certificate of authenticity generated with blockchain technology, which in turn can be sold to another person.
Right now the NFTs are being a boom and it is not known how long it will last or how this market will evolve.
Humans are driven by impulses and not always by logic, so time will tell us where everything is going.