Hi readers, it is time to learn something new today.....
What is NFT? As i said in the title, NFT means - Non Fungible Token. That's all? Yeah, you got what do you want to know, right? Just kidding, jokes apart.
In recent days, we came across so many news articles, social media, youtube are talking about NFTs. Like, Amitabh bachchan's NFT collection sold for 7.00 Cr.
Big B collections includes 'Amitji's father Madhusala poem in amitabh's tone", 'Sholay movie poster', other amitabh's physical posters were auctioned by beyondlife.club in Nov'2021.
It is really hard to digest But it is true. In this digital world, every art has it's own price.
Not only Amitabh collection, Art work of Mike Winkelmann - American digital artist, known as Beeple, can sell his art in three / four digit figure. But NFT of his art work sold at $69 million (How many digits are there?).
It is another unbelievable thing, isn't it? But already happened. We need to believe that the art piece was sold for $69 million. (Don't regret yourself not become "digital" artist)
A lot of these happened in this digital NFT world. We are all want to participate and earn as much as we can but don't think, you can directly participate in NFT world with out knowing anything, because you can't revert quick decisions once they went wrong.
We are not playing gambling here, Right? So we need to know before we introduce ourselves to this NFT world.
Let hit the bench yourself, read this one completely and explore the NFTs after.
Non Fungible - Non replaceable / Non exchangeable. The unique thing which can't be replaceable like your girl (of course it is replaceable, isn't it?) Just kidding.
For instance, we can find so many cricket bats in the store but if any bat used by international cricketer like Virat Kohli. Then it will be made precious thing by his fans like us (but it can't be NFT, because it can't be a digital asset but his sign be a digital asset). Your hard earned certificates (not fake ones) can't be replaceable but hard earned money can be replaceable.
I hope you got what is non fungible, now we are moving to 'what is token?' - In old banking system, when you went to a bank for withdrawal, they used to give a token and they called the token number to give you cash. It is like a proof that you submitted your withdrawal request. So token is a proof of "your ownership" like registered document of your property. Here this registered document be executed in presence of Govt authorities (Centralized) and it can be tracked by Courts, Govt etc.,. And we hold it in physical mode.
But when coming to token, we are talking about digital one, means it is a proof of your ownership in digital form, executed in the presence of public (Decentralized) backed by blockchain and of course the transaction can be tracked by public (but can't altered).
I hope you read my article on "Bitcoin", where i spoke about this decentralization and blockchain. It is ok, if you didn't. Let me explain in simple terms, blockchain is shared, decentralized and immutable ledger that facilitates the process of recording transactions and tracking assets across the entire network of computer systems. In decentralized world, a single person or authority can't control the system (not like bank authority controls your financial transaction done through your account) I mean it is in authority in public domain.
Now get back to our NFT world, Non fungible token - It is a unique digital work or items like pictures, clips, posters, song etc., can be bought or sold using this blockchain technology. No one can modify it or delete it.
Whatever digital item you can create with your own talent, you can sell it by creating NFT of the same by proving your ownership. It is a legit way transferring the ownership of an item. In this digital world, Even licenses (of product, of software, of medicine ect) can be obtained in these NFT form.
Or if you have money (not fiat money, you should have crypto), you can buy amitji's NFT collection or beeple's NFT. But i know your question, what will we do with these? if you are fan of amitji, you can keep it as his memory (Must be rich crypto guy). The correct answer is you can sell it for more price because it is unique (unique things have scarcity, you know), So price will move up.
Should you ride this NFT ride or not? we will discuss this in my next article. This is enough for today learning. Will come back soon with new article. Stay visited to my blog and explore my articles on various financial topics.
Ride - i got something in my mind that recently i purchased new sports shoe because I have to give a jog daily to keep me healthy.
You can buy this affordable sports shoe from Relaxo Footware Limited (Good company to invest, but it is not a stock advice and i am not authorized to give stock advices, do your own research before investing). To invest in stocks, you need to open Demat account at brokerage. Click below to open your Demat account now on
Hello, welcome to my blog, Smart Investor. I'm Satyanarayana, a banker & blogger, Investor from Visakha -patnam, India. You can read more about SML here.
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