First, Let’s Figure Out What the Hell it is
The stock market has existed in the United States since the late 1700s.
Granted, it looked much different back then than it does now, but even though it has been around for over 200 years, a substantial amount of people are just beginning to understand how to interpret the stock market.
If you are one of those people and are starting to feel good about yourself, soak it up while you still can because you have a whole new language to learn (if it makes you feel any better, several of us at Good Monster are right there with you).
And that language is cryptocurrency.
It is changing the way people buy things, and simultaneously, the 🌎
In order for you to grasp it, we are going to define a fundamental aspect of cryptocurrency and one you should pay attention to because it may change your industry: NFT.
A NF What?
We know, it is not the most world-renown term, but it is still one you need to become more familiar with.
A NFT stands for non fungible token.
Oh sorry, allow us to expand.
We will elaborate on the example Good Monster CEO John Timmerman used in his video explaining what a NFT is (he is a self-proclaimed nonexpert on this topic, so if you have any valuable insight feel free to leave a comment on the video or DM him on Instagram!).
A NFT to an asset is what a deed is to a house. A deed pertains to one house and one house only, and a NFT pertains to a singular physical or digital product.
🚨 Before we dive into some examples and demonstrate why learning about NFTs is so vital, please note this 👇
A NFT is not a cryptocurrency, but rather, a cryptocurrency, like ETH, acquires a NFT.
Stick with us! We promise it will all (sort of) begin to make sense momentarily.
Where Would You Ever Have to Buy a NFT?
On CryptoKitties, obviously.
Kidding! We were not familiar with the game until recently either. Here is a rundown of it 👇
CryptoKitties players collect and breed precious digital cats. As they accumulate CryptoKitties, the digital cats and name of the game are identical, they can breed them to unlock cattributes (okay, you have to love that one).
The more players collect and breed, the more cattributes they obtain!
Developed by Dapper Labs, a studio in Canada, CryptoKitties is one of the world’s first blockchain games, and the amount of money people spend on it is jaw dropping 😲
We are informing you about CryptoKitties because it is where a rather expensive NFT was sold. The NFT of a CrytpoKittie named Dragon, who our CEO describes as a “pink dragon kitty-looking thing,” sold for 600 ETH.
For those of you who do not know how much that is, it is $270K 💸
So yeah, we are talking about A LOT of money here.
If you are thinking to yourself, “Okay, well I am not into blockchain games so this NFT business will never apply to me,” think again because we have another example that might hit a little closer to home 👇
The swoosh influencing some NFT transactions is notable because if any company knows how to appeal to its target audience, it is Nike 👟
Rare Shoe, a digital artist collective, launched the inaugural series of collectible NFT sneaker art. Inspired by the Nike Dunk High and Air Force 1s, Rare Shoe designed its own digital versions for virtual sneakerheads (not sure if that is a real term, but we are rolling with it) to collect. Consumers can acquire these digital shoes for 0.3 ETH, which is approximately $508, according to HYPEBEAST.
Where is the Value?
We successfully identified a brand, one of the most famous in the world, that has gotten its feet wet in the NFT world, but skepticism still surrounds NFTs and the products they pertain to.
Going back to the virtual shoe example, even our CEO asked, “Couldn’t you just screenshot that?” 🤨
You probably can, but then you would not have the original.
“You could have an original (Vincent) van Gogh (painting), or you could have a replica. The original is worth a 💩load of money. The replica is not worth anything,” John Timmerman said.
Picking up what we are putting down here?
Purchasing a NFT means you now own something that is one of a kind, making it distinct from alternative versions. Over time, you can count on the original’s value to increase.
Similar to a house 🏠
Should You Expect it to Affect Your Industry?
Well, that depends.
Expect NFTs to affect industries where customization and scarcity, so limited quantities, are factors because they will affect supply and demand. Examples of industries that will see a lot of them are gaming, look no further than CryptoKitties, arts and other collectibles industries, hence Rare Shoe designing digital shoes.
The automobile industry is another one, evidenced by a F1 car’s NFT selling for 415 ETH.
That equates to slightly over $966,979 🤑
If your industry aligns with this criteria, begin to educate yourself on NFTs and cryptocurrency as a whole. In the fast-paced, ever-changing universe we live in, to be successful it is imperative you do everything in your power to stay ahead of the competition 👊
The world is f*#$%@ changing, and you can either change with it or stay behind and watch it pass you by.
Your choice 😈