You’ve probably heard enough about these crazy things called NFTs (which stands for non-fungible tokens). Well what does that mean? Non-fungible means it’s not replaceable, meaning it’s unique.
A better way to explain it is, a $1 bill is fungible, because it can be replaced by another identical $1 bill. A car, on the other hand, it not fungible. Two cars will never be identical. So then a non-fungible token is a digital object that is unique. If you’re still struggling with understanding, check out this article.
Over the last month, these NFT’s have blown up. Some crazy things have happened. One artist, Beeple, sold a digital picture for $69 million. See the image below.
This is not a piece of art that you can hang up in your house, it’s literally just a digital image. Why would someone pay that? Honestly, I don’t know!
Another crazy fad are NFTs called Crypto Punks. See examples below.
These are digital files with a pixilated image of a ‘punk’. Last time I check the cheapest one was selling for about $38,000. I actually have a friend that paid just over $40,000 for his. My friend will not admit publicly to owning it, which I think is pretty funny. Again, why are people willing to do this, I’m not quite sure, except that people think these images will be worth more in the future.
I say this, but then earlier this week, I bid more than $25,000 for a digital sports card of Bryson Dechambeau. Why would I do such a thing? Well, for a number of reasons. First off, the owner of this digital collectible, also gets to meet Bryson in person, and receive a signed U.S. Open flag, a custom set of Cobra golf clubs, $1000 to Bose, and 6 dozen golf balls. I thought those items were cool, but not worth $25k.
The reason I was willing to pony up $25k, is because I believe NFTs are here to stay as a way to collect things. I believe Bryson Dechambeau will go down as someone that changed the game of golf by bulking up and hitting the ball extremely far that is reminiscent of Steph Curry changing the game of Basketball via making so many 3-pointers. And I believe that this NFT commemorates Bryson changing the game of golf. I foresee that in 10 years, Bryson will have won 5+ majors, the average driving distance on tour will be 330+ yards and Bryson will be given credit for the shift in the game. And this digital collectible will be worth $1M.
One more thing…Mark Cuban is getting in on NFTs with a cool platform called lazy.com. Lazy.com is a digital art gallery where you can showcase all your NFTs (digital collectibles). You can include a link in your email signature to your digital collection located in Mark Cuban’s digital art gallery. Sounds amazing doesn’t it!
So don’t be too quick to dismiss this fad. Are they over priced? Maybe! Collectibles don’t resonate with everyone. It seems to be something only the super rich are into. Once you have so much money, you need something else to be able to brag about to your other rich friends. I don’t know for sure, just speculating.
I would love to hear your thoughts! Do you own an NFT yet? Do you foresee yourself buying one? Let me know.
Until next time, enjoy the week!
P.S. The price of my course will be increasing at the end of the month. If you’ve been contemplating, now is the time. Shoot me a message for more information.