NFTs Explain

Gm Bugti

It’s	a	digital	asset	that	represents	some	real-world	object	like	

music,	art,	in-game	items,	or	videos.	NFTs	are	bought	and	sold	

online,	often	with	cryptocurrency,	and	are	usually	encoded	with	

the	same	underlying	software	as	many	cryptos.	

NFTs	are	becoming	well-known	now,	though	they’ve	been	around	

since	2014,	because	they’re	an	increasingly	popular	way	to	buy	

Conti	and	Schmidt	report	that	“a	staggering	$174	million	has	been	

NFTs	are	usually	either	one	of	a	kind,	or	one	of	a	very	limited	run,	

so	they	have	unique	identifying	codes.	Arry	Yu,	chair	of	the

Washington	Technology	Industry	Association	Cascadia	Blockchain	

Council	and	managing	editor	of	Yellow	Umbrella	Ventures	says	

they	“essentially	…	create	digital	scarcity.”	

This	contrasts	with most	digital	creations,	which	are	almost	

So, cutting	off	the	supply	of	a	given	asset	should	raise	its	value	

(assuming	it’s	actually	in	demand	at	that	moment).

Many	NFTs,	especially	nowadays,	have	been	digital	works	that	

already	exist	in	some	form	elsewhere	(like	securitized	versions	of	

digital	artwork	that’s	already	out	on	Instagram).	

Why	are	people	willing	to	spend	so	much	money	on	something	

they	could	screenshot	or	download	elsewhere?	