#024 What's A Non-Fungible Token (NFT) And Should You Buy Them?
The word fungible means “able to replace or be replaced by another identical item; mutually interchangeable.
Fungibility would be like me giving you five 1-dollar bills for one five-dollar bill. They are interchangeable.
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Question: So what is a blockchain?
A blockchain is simply an digital record of transactions. The individual records are called blocks and get linked together in a single list like a chain (see where this is going).
So NFT’s are kept safe and secure on the blockchain which maintains their authenticity better than any real world signature or casing.
So let’s talk about art…
Art is a fantastic long term investment that not many people know about. It’s a little morbid, but a lot of art skyrockets in value once the artist dies since they cannot create any more art!
Usually it takes a window of about 10 years for art to appreciate substantially, but if its just hanging on your wall anyway, who cares.
Art is not tied to the stock market or what’s happening in the economic world in any way. This can make it very valuable though there can be plenty of fluctuations in value in the art world.
One downside to investing in art such as paintings, signed vinyl records and sculptures is that they can be hard to resell. There are plenty of auction houses but they take a hefty fee for their services. Outside of that, many times people want a way to verify that the art is not a copy and the ACTUAL piece.
ENTER NFTs…
There are two concepts I want to introduce. NFT’s to authenticate real world art and NFT’s as DIGITAL ART themselves.
To show that a piece is authentic, a one time NFT could be made and given to the owner of an original piece. Or if there are only five copies of something, then there could be five made. Whenever the asset is sold, the NFT is transferred to the new owner as a sign of verification.
Now here’s the mindblowing part…
What is the difference between real world art and digital art?
What’s the difference between a painting that hangs on your wall and a fancy, custom made background for your laptop? Aren’t they both pictures? Don’t they just sit there for décor and look pretty? Aren’t they worth whatever someone will pay for it?
But Stephen, art is real and tangible! No its not! What about music? Tha
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If working a 9-5 for 60 years so you can retire with a little money and die a few years later is what you want to do, then this is not the podcast for you.
Stephen is an executive coach that works with executives and entrepreneurs to build the life that they want, personally and professionally.
This podcast is about contrarian investment strategies around time, energy and money to build the 4 types of wealth and utilize lifestyle design to create the life we want. The interviews are with hi-earning individuals on how they make money so you can copy us and grow wealth too!
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