NFTs have become the optionality boom of 2021:
What Are NFTs?
Non Fungible Tokens are cryptographic keys that prove authenticity, ownership, and status for digital "assets".
Art is the current practical application. Think of NFTs as GIFs, pictures, videos, music, or anything online, but with a cryptographic receipt attached. The token's sole purpose is to prove ownership.
This picture is worth $0:
I screenshot the image a few minutes ago.
Someone somewhere owns the same picture, but with the cryptographic token. This modifies the artwork into an NFT worth 605 ethereum (~$760,000).
Don't believe me? This CryptoPunks NFTwas sold a few days ago:
0xd387a6 is a rich pal.
You might be thinking this is stupid. Why would people buy this? Optionality doesn't care about what you think. It's just available.
What Do NFTs Give?
You get ownership of digital data. It's impossible to replicate the token (non-fungible).
Like first place on an arcade game scoreboard:
An NFT purchase gives immutable proof on the blockchain about who the owner is:
Most importantly, NFTs give creators new ways to monetize.
Two years ago, I followed an artist on Instagram. Last month, the creator tokenized their art into NFTs—and made $4 million...selling 3 NFTs...in 9 minutes. Crazy:
Want something crazier? There are NFTs that allow you to redeem a pair of socks for 92 ethereum or...
The availability of optionality in 2021 is game changing. NFTs are a clear example.