Yes, yes, NFT’s and buying them has become somewhat of a trend lately: practically everybody’s heard of them. But what does the abbreviation “NFT” exactly mean and why are people so hyped up about it?
Firstly, let’s make the terminology clear. NFT means non-fungible token. Or, in human words, a “one of the kind” token. It means that there is only one kind of every NFT and it can’t be traded for any other NFT. As an example, Bitcoin is a fungible token, because you can trade it for another Bitcoin and it will have the same value.
Theoretically, any digital piece of information can be NFT – articles, web pages, etc. But the most popular type of NFT is images, like the monkey above.
You might ask a pretty obvious question: why on Earth would I pay money for a picture (and, for reference, some of them are being sold for thousands of dollars) when I can just download it for free?? And that is a very good question. You see, a picture can, in fact, be copied as many times as you want, but there is one aspect that cannot be copied – the right of ownership. People pay huge money just to become the rightful owner of the image.
Now, do I think this is crazy? Completely. But many people consider buying NFT’s an analogy of art collection and, to some extent, it is understandable. Maybe someday I will understand the whole meaning of this (or will have enough money to buy pictures from the Internet).