NFTs explained using sports
NFT (noun): a digital asset associated with an item of value that can be brought or sold, usually a unique piece of content on the internet, as an image, video or audio file.
Above is the Meaning of an NFT from dictionary.com. I have a brief understanding of an NFT and know what it is. Think of an NFT as a signed sports card of a famous basketball player or something (I’ll get into it in a second). Worth quite a lot as seen last year.
This blew my mind when I found out about this, but I wasn’t as surprised as I probably should have been. You see, when this news broke, NFTs were in full swing. You’d see a simple pixel art of a face sell for millions all the time to the point where it almost became expected. Making the Lebron rookie card just an event waiting to happen.
Sports cards and NFTs are more similar then you might think. All sports cards have some form of rareness to them and finding a rare card is special. You own a card that the card manufacturers may have only made so many of, maybe only 10. Now if you take the number 10 and subtract 9 then it becomes SO much more everything. More rare, more valuable, and a more special feeling inside of you. That you own it. That’s what makes an NFT so expensive. Own-ability or knowing that only you own such a rare item.
Even when I figured this out I still couldn’t understand why you would put your life savings into one, but it works a little like this. Say you purchase a centre for your team and he’s athletic, tall, and good under the ring. He’s already good for what you brought him for at $1m, but you already have a good centre and want to sell this one and make some money. The only problem is that no other team wants a big man for over $1m at the moment, so you hold onto him until there is interest for a centre and you sell him for $1.5m. You wait for the interest and the need to own a center goes up. Now you have $500,000 extra to spend on something else.
I know it’s different as you can’t increase the value of an NFT by giving it a new skill or getting it fitter, but the concept of buying when cheap and selling when the interest for a tall guy goes up is kind of the same.
NFTs are going to be a part of the future and everyone needs to know about them. It is difficult to grasp the concept at first and I hope this cleared a few thing up about them.