Your complete human guide to NFTs in 2022

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This week, the world was crazy. Facebook lost $230b in market cap, while Amazon gained $135b in market cap. Amazon also doubled their employees over the past year— 800,000 to 1,600,000 (Source: Amazon Q4 Report). However, one thing that remained constant over the past couple of months are NFTs. Everyone is talking about them. Some Instagram posts say they can help teenagers make money while being in school! While some say the whole thing is a hoax & you can just screenshot an NFT.

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Well, before I try to explain what an NFT is, let's start with the basics. The abbreviation NFT stands for non-fungible token. Yeah yeah, I know. Big words. Non-fungible basically means non-interchangeable – just one of a kind. For example, coins are fungible. I could give you 50 cents and you could return 50 cents with a different coin. A good example of a non-fungible asset would be a MacBook prototype that was never launched. Just one of a kind – cannot be replaced for anything else.

So again, what is an NFT? An NFT is a form of digital art. They could be photos, videos and so much more, but in the world of blockchain. Ah yes, I know. Too many new words. A blockchain is a system that is practically impossible to hack or change. The whole concept of NFTs is based on the Ethereum Blockchain. You could buy an NFT from a marketplace online like OpenSea, for example. Essentially, NFTs are digital form files that are one of a kind with a unique code that identifies the owner of the digital file. It is not crucial for an NFT to be art. The founder of Twitter, Jack Dorsey, sold his first tweet for $3 million! So, it could be anything.

But, wait – wait – can't I just screenshot Jack's tweet and have ownership of it? Well, nope. Yeah, you could right-click and save the image or screenshot it but that doesn't make you the owner. The ownership is verified with a special key/code that only the person who paid for it has. So, is it just art that is easier to steal by right-clicking and hitting download? I mean, yeah. Anyone can print the photo of the Mona Lisa, but only one organisation owns it. The same logic applies here. I could save something but I wouldn't own it!

So what's the point of NFTs?

That's subjective– It's highly subjective. If you are a buyer, you are more likely to be a collector. Buying NFTs is just a social symbol. After buying an NFT you have basic usage rights and bragging rights saying that you own a piece of electronic art. It’s also possible that you could buy an NFT, hoping to resell it in a couple of years- ideally after pushing the price up, in order to make some extra bucks off of your initial investment. As an artist, NFTs are a good opportunity for you. Maybe you could create some spectacular pieces and sell them for millions online.

You don't need to create something special to sell as an NFT. Logan Paul made a video and sold it as an NFT online for 20 grand. If Logan Paul can make money with NFTs, so can you.

So are NFTs the new thing now?

If you ask my classmates, umm, nope. But, the way this thing has raged is insane. Has this article convinced you to buy an NFT? You could buy one on OpenSea. Now, I am gonna be honest here and put down my personal views. So, if you like arguing, feel free to close this tab and continue with your life.

As a 16-year-old, this is the first time I actually know what NFTs are. And I am not sure how I feel about them. Yes, for artists and collectors, it is cool. But, I am not sure if this is the right option for regular people! I mean, what do you do after you purchase an NFT? Set it as your desktop picture? Well, artwork offline is tangible so you could hang it up and show it off. But still, what do you do with an NFT? Randomly enter a zoom call and brag about how you own a pixelated ape NFT? Eh. I don't know if this is the future but the technology behind this is. Blockchain is the future of the world and it is so cool — straight up amazing! Like, not even gonna lie. But again, I am no expert and I wrote this article because a lot of people bugged me to. I am still learning and exploring so feel free to drop in your opinions on the same. Wanna chat more about NFTs? Drop me a DM on Twitter. And, I guess that's it for this article, I will catch you next week. Till then, make sure to update your devices.

Wondering why NFTs in India are taxed at 30%,
Tejas Tagra
5998 days old