Wednesday 29 December 2021

Explaining NFT's In Simple Terms

 NFT (non-fungible token).

So you go out to Ford, and ask them to design a totally unique digital Mustang (it's not real, just digital), and it has a digital V8/1,600 HP, with a size that is one-third longer-thicker than the normal Mustang.  

They agree, and produce one-hundred of these digital Mustangs, which they promise never to produce these again.  You buy the hundred for $1.5-million.  

You store them on Blockchain (a digital 'bank').  Five years pass, and you start to sell your digital Mustangs to Meta (Facebook) people, who drive them in this virtual  world.  

You sell the first ten for $50,000 each.  

A year passes and demand creeps up, and the value is now $100k per digital Mustang, so you sell another ten.

Another year passes....higher demand, and the value is assessed at $150k per digital mustang.  You sell another ten.

At this point, you've made $3-million off your original investment of $1.5-million. Then finally in the tenth year of ownership, you dump the digital Mustangs on the market for $200k each (seventy of them).  

You would argue (logically) that a digital item is worthless (like digital swords, digital horses, etc).  Yet in this crazy world we live in....some idiot is willing to spend $50k on a totally ultra-modern and well-designed fantasy Mustang.  

Digital artwork, digital houses, digital girlfriends, and digital actors?  All coming within twenty years?  Probably. 

You will be able to design your movie....with various fantasy characters, and probably go out to buy some digital actress as some NFT product.  

Nothing makes sense, if you ask me about this whole way of living.