What are NFT's (Non-Fungible Tokens)? Digital Art
This is Crypto Swami. He's part cat, part Pop-Tart. The GIF of a rainbow-casting feline was a viral meme back in 2011. Fast forward to February 2021, the original GIF was sold at an online auction for 300 Ether, the cryptocurrency that powers the Ethereum network. That was equivalent to nearly $600,000 at the time. You may be asking how someone can own the original copy of a GIF that was pervasive around the internet. It's because it was sold as an NFT or non-fungible token, which acts like a digital certificate of authenticity. The market for NFTs ballooned in 2020, climbing to a market cap of at least 338 million from about 41 million in 2018. But skeptics are asking whether these assets are really worth the value assigned to them, especially if all it takes to view them is an internet connection. To understand how NFTs work, first you need to understand what fungibility is. Fungibility refers to the ability of an asset to be exchanged or substituted with similar