How are the NFTs A Good Investment?

 Today I want to talk about NFT Marketplace and whether I think they're a good investment. So let's talk a little bit about the difference between fungible tokens and non-fungible tokens.

A fungible token would be any token that's theoretically interchangeable. So one us dollar bill is really equal to any other us dollar bill. I'm simplifying a little bit here because obviously certain serial number dollar bills may have a nefarious history or one dollar bill may have a little cocaine on it and another doesn't likewise with other fiat currencies.

But the basic idea is that one dollar is one dollar and the same might be said for bitcoin as well you can send someone a bitcoin. They can send someone a bitcoin back to you a different bitcoin and you still have the same amount of wealth.

So those are fungible tokens they're interchangeable a non-fungible token is a unique token. It's a unique digital asset you can think of it like being a digital baseball card. If you grew up in the 70s like. I did and knew about baseball cards and basketball cards etc. It could be a digital painting.

It could be an asset in a virtual world like decentral and. You could buy some real estate there for example these are normally built on the Ethereum network and because of the smart contract capability of Ethereum. You can do some pretty cool things with the NFT Marketplace Website. You can prove that you own one proof of ownership is built into it. You can see the current owner.

The previous owner you can see the transaction history and it's easy to add other interesting metadata as well unlike collecting oil paintings or canvases. It's much easier to store these obviously they're essentially stored on the blockchain. You don't need to buy fire insurance or flood insurance and it's very easy to verify that you own it and you can get bragging rights.

I think is what a lot of people like you can go online and show everyone that you own it. You can just watch the NFT online but you don't actually own it and you can't sell this unique token. Here's a decentral and I haven't really used this but this would be an example of a virtual world where you could trade create and trade NFTs.

If you've heard about kitties which was sort of a craze a couple years ago these I believe were probably the first version of Most Popular NFT Marketplace. Here's the most famous one called drag on currently for sale for 600 eths roughly a million dollars. If you're finding this video help to pause right here and just ask me if you could subscribe. You can see that there are 146 of these uh for sale.

So this really is uh really the definition of greater full investing where the only way you make money with these is. Now I'm not saying you can't do that but it's more difficult than you might imagine and I think. It's a very good business if you're issuing NFTs this is just free money for the NBA.

If you run one of these companies that takes a fee whenever an NFT is issued the winkles twins were very smart. They bought nifty gateway back in back in 2018 I believe and so they're very smart to be there just taking a cut of everything. 

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