What Are Cryptocurrency NFTs ? This is the part that takes a bit of open-mindedness. An NFT is a unique digital token, with most using the Ethereum blockchain to digitally record transactions. It’s not a cryptocurrency like Bitcoin or Ethereum, because those are fungible — exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so there’s a listing of who owns each one.

1. What Are Cryptocurrency NFTs ?
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What Are Cryptocurrency NFTs? This is the part that takes a bit of open-mindedness. An NFT is a
unique digital token, with most using the Ethereum blockchain to digitally record transactions. It’s
not a cryptocurrency like Bitcoin or Ethereum, because those are fungible — exchangeable for
another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so
there’s a listing of who owns each one.
How do NFTs work?
Traditional works of art such as paintings are valuable precisely because they are one of a kind. But
digital files can be easily and endlessly duplicated. With NFTs, artwork can be “tokenized” to create a
digital certificate of ownership that can be bought and sold. As with crypto-currency, a record of who
owns what is stored on a shared ledger known as the blockchain. The records cannot be forged
because the ledger is maintained by thousands of computers around the world. NFTs can also
contain smart contracts that may give the artist, for example, a cut of any future sale of the token.
Why are NFTs so expensive?
As with physical collectibles such as baseball cards and toys, there’s a market for NFTs. The buyers
tend to be tech-savvy individuals who understand the idea of wanting to purchase digital goods and
likely made a killing this past year with cryptocurrencies. Ethereum, for example, went from just over
$100 last March to a current price of about $3,400. In some cases, buyers are just flexing their digital
wallets to show off how much crypto they have, but for others, there’s a deeper interest.
In theory, anybody can tokenize their work to sell as an NFT but interest has been fuelled by recent
headlines of multi-million-dollar sales. On 19 February, an animated Gif of Nyan Cat – a 2011 meme of
a flying pop-tart cat – $500,000 (£365,000). A few weeks later, musician Grimes sold some of her
digital art for more than $6m. It is not just art that is tokenized and sold. Twitter’s founder Jack Dorsey
has promoted an NFT of the first-ever tweet, with bids hitting $2.5m.hristie’ssale of an NFT by digital
artist Beeple for $69m set a new record for digital art.
NFTs are exploding and 2022 will be the year that they break through the mainstream as
Crypto did in 2009. Do you remember when you missed that?
Don't be left out again!!
Learn more about NFTs