NFTs explained in 5 minutes

Brut America

Tweets, memes, and digital art are now selling for millions...  NFTs, the latest crypto craze, explained in 5 minutes.

Transcript

00:00Everyone wants to get in on this NFT craze.

00:03It's something that we should all be paying very close attention to.

00:06People collect art that doesn't exist physically?

00:17What an NFT is, in its simplest term, is a digital collectible

00:23whose authenticity can be verified in a public way

00:28via what's something called the blockchain.

00:31It could be a sound recording. It could be a picture.

00:34It could be a 3D graphic.

00:37Basically, whatever you can think of as being art

00:40could be an NFT.

00:42It's just a digitized version of said art.

00:53Fungibility could be thought of as something that could be equally exchanged.

00:57If I have two $5 bills and I have a $10 bill,

01:01then I can exchange those.

01:03It's the same thing. Same thing with Bitcoin.

01:06Non-fungibility would be like if I tried to trade

01:09the Mona Lisa for the Statue of David.

01:14Non-fungible tokens can just mean something that's inherently unique,

01:20something that isn't pegged to a specific monetary value.

01:36A common criticism to NFTs is,

01:38well, why don't I just take a screenshot of a picture

01:42and then I'll have the same thing?

01:44With NFTs and memes and tweets that have been converted to NFTs,

01:50I think to me that it's a good deal about people wanting a piece of history.

01:56For instance, if you have Jack Dorsey's first tweet

02:00and that got converted to an NFT,

02:02you now have a piece of history that no one else has.

02:06Sure, they could scroll for probably 14 days and find the original tweet,

02:11but having that or having the flying rainbow cat or anything like that,

02:18it's a piece of nostalgia.

02:21A lot of that is bragging rights,

02:23just the same reason you'd buy any other art piece,

02:26just to have it and show it to your friends

02:28and make you feel good every time you look at it.

02:34For now, I can own the NFT on my digital wallet,

02:38and I can show you that on my phone,

02:40but what about if I want to have it in my home?

02:42There are more solutions coming out

02:44where I can have a frame on my wall,

02:47and that blows up the NFT so that I can see it in large format.

02:51I've seen a walkthrough of a digital art gallery.

02:58Every wall has different pieces on it,

03:01so that's probably where we're headed in the future.

03:09If you're a local artist, you can now turn those into NFTs

03:12and potentially multiply your reach by 100 or 1,000 fold.

03:18Same thing if you create memes,

03:20same thing if you do anything that's trolly or internet style.

03:24NFTs derive value from many different sources,

03:28but if you are a famous person,

03:30if you are a public figure,

03:32or if there was a historical moment that happened,

03:34that will certainly lend to the said value of the NFT.

03:39Of course, anyone can do it,

03:41but the more eyes you have on that project,

03:43the higher likelihood you have of selling that.

03:58I do think there probably is going to be more merging

04:01between the digital art world and the traditional art world.

04:05It's just like everything else has done.

04:07With Beeple, I have tremendous respect for that guy and his team

04:11because he took pictures every day without fail for 5,000 days,

04:17so that guy deserves $69 million.

04:28NFT could apply to anything, really.

04:30If you think about it, that could apply to the deed to your house.

04:32That could be real estate, you know what I mean?

04:36Or your apartment complex or whatever you want

04:39because of the fact that it's on the blockchain

04:42and it can be verified by anyone and it's unique

04:45and it can have its authenticity verified.

04:48You could apply that to many different sectors,

04:50including real estate or any kind of valuables outside of art.

04:55The speculation part is when people will only buy an NFT

05:00for the purpose of trying to sell it for more.

05:03That is what screams bubble to me.

05:07However, I will say that NFTs, especially utility-driven NFTs,

05:13will absolutely be here for the long haul.

05:16And just like the rest of the crypto markets,

05:20they will probably be ebbs and flows, ups and downs,

05:23but the trajectory is steadily going up.

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