Video – In his column for JDD, Sebastian Tortue, Marketing Consultant and Author DNVB, (re)new trade, This week it looks at the cost of NFTs.
What would you do with $69 million? Your choice: buy an incredible home, travel the world, help with issues dear to you or get an NFT? Imagine that a stranger has chosen to buy an NFT, a non-fungible token, in French a non-fungible token. NFT is incorruptible proof of ownership of a unique digital asset. The term “exchangeable” refers to an asset whose units are interchangeable. Two 10 € bills can be exchanged because I can exchange them and they will always have the same value.
Whereas the Mona Lisa, for example, is not replaceable because I know where it is and who owns it and I can’t exchange it for anything. So an NFT can be a work of art, an audio file, a video, a virtual plot of land, or in short any intangible asset of value. The NFT is not work per se; It is a piece of token on the blockchain that indicates the location of the NFT.
A combination of five factors
And this is the revolution behind NFT because in the digital world, it was almost impossible to create real links to the file source. If you share a photo on social networks, who will be able to find my first trace. Moreover, who knows who published the first song “I’m Charlie”. At the moment with NFT, this author untraceability is gone because we have a way to allow all tokens to exist with an added value that cannot be copied.
Read also – It is possible to become a cult athlete thanks to NFTs
It is possible that knowing that the NFT belongs to a very famous person can increase its value, beyond the work itself.
How is its value determined? Quite simply at the end. It is a combination of five main elements:
- Authenticity: I know I own the original and I know all of its journey since its inception.
- Rarity: It is unique in nature.
- Transferability: I can easily pass it on to anyone in the world if they buy it at the price I offer.
- Its usefulness: Other than NFT itself, it can give you other rights like access to special events, and discounts on products, for example.
- Its societal aspect: Having a private NFT can create a sense of belonging to the community.
The combination of these elements makes it an asset that can rise in value very dramatically and reach absolutely record amounts. Do you have to jump into NFTs to make a fortune? Above all, as with artwork, treat yourself within your means. The market is booming and it can lead to bragging.
This is only the beginning of a great revolution because it is clear that NFT is a technology that will change the world and push the boundaries of our thinking about the value given to the digital world.