By Jonathan Chee
GHIB Investment Banking Manager
- Goods that are copied and exchangeable for the same “value” for the same item are called fungible.
- Non-Fungible Tokens (NFTs) do not have to be “original”, but the “token” is unique which is registered to your name and identity.
- Blockchain has used a new age to authentication, and this is set to continue revolutionizing creative business models.
In the 21st century, everyone can own a version of anything these days, thanks to NFT!
Each generation had its own currency. Millennials had Pokémon and Yugioh cards, Generation X had basketball cards and Baby Boomers had postage stamps and comic books. We would like to believe that we live in an economy with a single fiat currency, however this is not true. From children exchanging video games to adults exchanging gifts for favours, we all have experienced parallel economy in our life.
Why does the original near mint condition Pokemon card fetch $369,000 USD from the auction house? And why not my reprint on glossy paper? It is the “fungibility” of the element that complements or modifies the value. Since the barter system, we have agreed on the value of different commodities as per the demand for it. Similarly is demand for consumption, compactness or fashion ability. Goods that are copied and exchangeable for the same “value” for the same item are called fungible.
A one-dollar stamp and 1 kg of chicken meat is fungible. However, a one-dollar stamp with Michael Jackson’s autograph or the first chicken meat grown in outer space are ‘non-fungible’. The same applies to digital commodities, 1 cryptocurrency can be exchanged for another, making it fungible but the first tweet ever is an ‘original’.
What is a NFT token?
Non-fungible digital goods have made headlines recently due to their commercial profitability. Memes, social media posts, sports clips, gifs, photos, etc. are sold for millions of dollars. There is an interesting difference between non-fungible physical items and non-fungible digital tokens. Intrinsically Non-Fungible Tokens (NFTs) do not have to be “original”, but the “token” is unique. When you purchase an NFT art, a token is generated against that purchase, which is registered to your name and identity. This token is unique and non-fungible, hence making Beeple, Everydays NFT art the most expensive ever at recorded price of $69 million dollars!
[Beeple, Everydays – The First 5000 Days NFT, 21,069 pixels x 21,069 pixels (316,939,910 bytes). Image courtesy the artist and Christie’s.]
To put it in layman’s term, NFT is a digital asset, a digital copy of a real-world event with a receipt confirming your ownership. NFTs can record “real” art, audio, memes, tweets, graphics, or video clips. One can take advantage of the digitization of existing popular culture phenomena or create your own crypto art.
Food for Thought:
Hype or Future?
NFTs can be a bubble, as crypto sceptics claim. But there have been similar claims being made regarding cryptocurrency, the cryptocurrency market has seen some recent downturn with the Altcoin. However, more and more countries are looking for ways to monetize this technology and the number of users are increasing. Its acceptability had moved past as just being a fad.
[Growth of Crypto Art. Source: https://cryptoart.io/data]
NFTs future may not be created, but it has opened up a whole new world of content creators and artists. A case in point, Niio Art has demonstrated how users can rent art without owning it for a time period. Blockchain has used a new age to authentication, and this is set to continue revolutionizing creative business models. NFTs are a manifestation of this revolution, which will keep evolving hence investing in it may not be a bad idea.
Stay tuned and follow our social media of GHIB, where we will continuously reveal and update the news in the trend of the Crypto world and blockchain development.
Golden Horse Investment Bank (GHIB) is one of the world’s leading digital investment banks that leverages the power of blockchain to transform the traditional financial system. Our proprietary Golden Horse blockchain is an advanced multichain blockchain system.
The GHIB was founded by Malaysia’s prominent entrepreneur, Tan Sri Lee Kim Yew.
Golden Horse Investment Bank Ltd (LL16429)
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