WEDNESDAY, FEBRUARY 23, 2022, NFT

 WEDNESDAY, FEBRUARY 23, 2022, NFT

Well, another day with another topic I know almost nothing about - NFT - Non-Fungible Token.  It seems to be another way to invest and own something that isn’t quite real.

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“An NFT is a digital asset that represents real-world objects like art, music, in-game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. A staggering $174 million has been spent on NFTs since November 2017.

NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, chair of the Washington Technology Industry Association Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.

This stands in stark contrast to most digital creations, which are almost always infinite in supply. Hypothetically, cutting off the supply should raise the value of a given asset, assuming it’s in demand.

But it is not just an artistic or creative digital asset that you can flaunt to your friends, neighbors, and family. One can even attach digital contracts to it that allow special perks such as access to a private conference, podcast interviews, exclusive events & parties, more future NFTs and much more.

NFTs will completely revolutionize entire industries by changing the way we share and consume pretty much everything. That is huge, and we are just getting started in this phase of NFT adoption.

• Non Fungible Tokens (NFTs) are stored and traded on a blockchain platform, the most common one being Ethereum. It makes it trustworthy and tamper-proof since counterfeiting is difficult for a decentralized and permanent record.

• Creators can retain ownership rights over their work and claim resale royalties directly without the need for any third party such as a publishing house, media agency, or any other distribution platform.

• NFTs allow a shift of revenue from marketers (or distributors), to consumers through trading and give complete autonomy to the creator.

• An NFT comes with a digital certificate of ownership, and the transaction history is available publicly. When everyone is obsessed with Instagram's blue checkmarks and vanity plates, this could mean endless opportunities for creators.

With all that said, NFTs are still in a nascent stage of their evolution, as a tradable asset, and investing in them is highly risky. They are volatile, and one must do proper research before making any investment decisions. It’s like investing in the cryptocurrency market in 2015. It could be a highly lucrative investment if you do your research and invest smartly. But make sure you only invest what you can afford to lose. This is Web 3.0. If everything goes well, NFTs will be omnipresent.

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(Did that help?)

Okay - example (I think).

Tom Brady is a National Football League Quarterback.  He brought many Super Bowl championships to the New England Patriots and then has played for the Tampa Bay Buccaneers for the past few years - also getting a Super Bowl championship.  And, he retired after the current season.

Check out this link on how to buy a Tom Brady NFT - non-fungible token:

https://www.coindesk.com/learn/how-to-buy-a-tom-brady-nft/

Now - some of the NFTs in Tom Brady’s offering includes:

It features 25 sets of tiered collectibles based on their rarity. Note that the memorabilia tokenized as part of Tom Brady’s Origin collection include his:

Combine cleats

College resume

Rookie draft card

Combine jersey

Combine stopwatch

These are sorted (ranked) into tiers as follows:

These rarity tiers are named:

Carbon - the least exclusive (cheapest)

Platinum

Emerald

Sapphire

Ruby - the most exclusive (most expensive)

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So, like collecting plates (or whatever) from the Franklin Mint - hoping that they will increase in price over the years; you can own a Tom Brady NFT of his cleats, or jersey or other.  No, you will NOT get Tom Brady’s cleats or Tom Brady’s jersey, but you will have an asset-based on blockchain that shows you have ownership of Tom Brady NFT #142 (I made up the number).  You can show your friends that you OWN that particular digital “thing” - in your digital wallet.

And, as you spend more, you will get more exclusive material and potentially signed (autographed) digital assets. Some performers will grant you better seats or backstage privileges if you buy the high-end NFTs.

In five years you may want to sell your Tom Brady NFT #142 - and hopefully at a high price.  Again, you own digital content and whoever buys this from you will now have ownership of photos of Tom Brady’s career.  I have no idea if Tom Brady NFT #142 will be worth a lot of money in the next century or in three centuries.  But then I have no idea if the John Wayne commemorative plates from the Franklin Mint are worth more now that John Wayne is gone and forgotten.  

My investment guess is to buy at the original sale event and in the next few years the NFT should rise, and you can sell it then for a profit - but eventually (years from now), somebody will say “Who was Tom Brady” and why do I want to own photos of his cleats from the college football combine?  

(But, I am going to be packaging some of my blogs in the near future.  Just think, you can have legal ownership to PDF files of my original blogs built on a blockchain platform.  It might be like owning a first edition of a William Shakespeare play!!!)

LOVE WINS

Karen White

Wednesday, February 23, 2022