Some non-fungible tokens (NFTs) have sold for millions of dollars, and experts expect the market will exceed the billion dollar mark by a couple of hundred million within 2021. What is this thing that is creating new markets and has captured the attention of creators, collectors, and crypto-enthusiasts?
An NFT is a specific type of digital asset. The token refers to a virtual entity. Cryptocurrency like Bitcoin and Ethereum are examples of tokens. However, cryptocurrency is by definition fungible. It is meant to be mutually interchangeable with other forms of money. In contrast, something that is non-fungible is truly one-of-a-kind.
It brings to mind the descriptive phrase in Antoine de Saint-Exupéry’s The Little Prince, “unique in all the world” that the prince applies to his rose as distinct from all others. In contrast Gertrude Stein declared there is no difference among roses: "Rose is a rose is a rose is a rose."
Money in all its forms, including digital tokens is the interchangeable rose. But an NFT is a token immortalized as something distinctive
Read more in NFT Explained: How to Make, Buy and Sell Non-Fungible Tokens
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