Non-fungible tokens (NFTs) have gained popularity in recent months, with investors and art lovers spending millions of dollars to claim ownership of something that only exists in the digital space.
Twitter CEO and crypto enthusiast Jack Dorsey is one of the most recent to enter the game, auctioning off his 15-year-old tweet as an NFT. Earlier this week, American rock group Kings of Leon announced that their new album will be available as an NFT, offering some exclusive options to fans.
RT’s Boom Bust presenter Brent Jabbour discussed this new way to own art and other digital assets, and how it really works, along with Boom Bust co-presenters Ben Swann and Christy Ai.
“NFTs gain value based on the same deflationary principles as bitcoin and there is a limited amount of tokens and items cannot be duplicated,” Christy Ai explained. The tokens are based on blockchain technology, allowing them to be traced back to the original creator, she added.
“The question of tokenizing everything – and that’s where we’re going in the economy – when you tokenize everything, you create a system by which you can actually create master copies of tokens that … have the right to brag,” Ben Swann said.
While you can still view art or video online, NFTs give you ownership, making the rare piece of digital art an investment opportunity. However, creators also benefit from the technology, as they can earn royalties, even on resale.
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