![]() ![]() On paper that makes no sense at all, but the fact that he did that in front of such a wide audience in turn drives up the value of Pokemon cards, so he essentially becomes richer by way of a self-fulfilling prophecy. You mentioned Logan Paul, who one month ago spent $2m on Pokemon cards. The final reason is something I like to term the “LOLZ” factor. And frankly people want to get in early on this one as they see the potential for it to explode in the same way as Bitcoin. That means that the concept of NFTs in general is something that people can get their head around. That means that more and more retail investors (normal people like you and I) are getting in, which means that we’re becoming accustomed to the concept of something that doesn’t actually exist but has real, tangible value. Major financial services institutions such as PayPal, companies such as Tesla and institutional investors are piling in and driving the value of digital currency higher. NFTs are tied to the blockchain, the same technology behind Bitcoin, and cryptocurrency has exploded in value over the last few months. The main reason is that while NFTs and digital art are only now reaching the mainstream, there are digital natives who understand the concepts described above and see real value in it and are willing to pay to own it. Why do you think people are paying large sums of money for digital art that is available elsewhere for free? Or, of course, they could become completely worthless. So if in time Kings of Leon come to be viewed in the same way as The Beatles and/or continue touring into their 80s, while NFTs continue to grow in popularity in general, then Kings of Leon NFTs could become very valuable. Of course, the value of art and collectibles can change dramatically over time. But like most collectibles, the original run tends to hold the most value. Sure, the band or record label could decide to issue more in the future. There will only ever be a certain number records or NFTs available. But to use the physician analogy again - think of an NFT as a limited-run vinyl. If you buy the NFT, you’re buying something that is the same product in many ways, so the same track or album you can listen to on other platforms. Unless the world ends or the economy collapses, you’ll be able to do that today, tomorrow, or 50 or 100 years in the future. If you buy a track or album through a store such as Amazon, you’re buying the right to stream or download it for listening purposes whenever you want. It’s really all about scarcity of supply. Why is buying a track or album as an NFT different to paying to download an MP3? In the digital world, the NFT is the original of whatever digital art has been created, be it art or music, and verifies this through a network called the blockchain, which is the same technology that powers Bitcoin. To use a physical analogy - think of an original first vinyl pressing of ‘Sgt Pepper’s…’, which is still valuable even though you can listen to the music anywhere. The confusion, I think, is around “owning” something that is primarily digital and can be reproduced or redistributed endlessly. But as for the rest of it – it’s confusing. OK, so we understand that an NFT is a non-fungible token. ![]()
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