Curate’s James Hakim Talks about NFTs and Why Are Some worth Millions?

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The news of NFTs selling for millions is all over the internet. With a sudden boom in the popularity of this digital asset, most people are scratching their heads to understand what exactly NFTs are. In the past few years, investors, collectors, as well as celebrities have started taking interest in this latest blockchain craze. As NFTs are getting more and more popular, Curate founder James Hakim has explained it in simple terms. Curate is the world’s first all-in-one marketplace that offers both physical and digital goods. Curate allows minting, buying, and selling NFTs (Non-fungible tokens). The founder of this NFT marketplace James Hakim believes that NFTs have immense potential and are likely to become even more famous in the coming years. In this post, James Hakim has simplified NFTs for us and talked about some pieces that are sold for whopping prices. So, let’s find out more about this new blockchain craze.

What are NFTs?

To understand NFTs, James Hakim breaks down this term into 2 keywords- Non-Fungible and Token. To understand what non-fungible means, it’s important to know the concept of fungibility. Any good or asset that can be interchanged with other similar goods or assets is known as a Fungible asset. A non-fungible asset, on the other hand, is rare or unique. It means that these are not interchangeable. An example of a fungible asset is fiat currency such as the exchangeable dollar. Also, one Bitcoin can be interchanged for another bitcoin because they both hold the same value. However, an antique car or rare coins can’t be interchanged because of their uniqueness. Now that we know what non-fungible means, the second word is a token. In the digital world, a token is a type of virtual currency or asset that exists on the blockchain. So, an NFT is a one-of-a-kind asset that exists on the blockchain and can’t be interchanged for another. An NFT can be any digital asset such as a video clip, GIF, game avatar, a piece of artwork, audio, and more.

Why NFTs are Valuable?

When it comes to physical collectible items, it can be tricky to verify the authenticity because an original item such as artwork can be replicated, forged, or copied. The antiques also don’t have a public record which further complicates tracing the history of the object’s ownership. However, with NFTs, there’s no such issue because these digital items exist on the blockchain which creates an immutable and verifiable public record to verify the authenticity of the item. In other words, Non-fungible tokens or NFTs are cryptographic assets that exist on a blockchain. These objects have unique identification codes and cannot be replicated.

The Most Expensive NFTs

From tech investors to major corporations like Nike, NFTs are gaining the attention of everyone because of their insane prices. Some of these virtual creations are sold for millions such as an animated Gif of Nyan Cat – a 2011 meme of a flying pop-tart cat was sold for more than $500,000 (£365,000). Another multi-million-dollar sale was Beeple’s artwork. Everydays: the First 5000 Days by Beeple was sold for $69.3m and is still the most expensive NFT ever sold. Taking this trend further, Twitter’s founder Jack Dorsey sold the first-ever tweet as NFT with bids hitting $2.5m. Another most expensive NFT is CryptoPunk #7523 that was sold for $11.8 Million, followed by CryptoPunk #3100 that grabbed $7.58 Million.

If you are still wondering why NFTs are so valuable, consider an original Picasso painting. Even if his artwork is copied, the original paintings are unique and thus non-fungible. Likewise, NFTs are valuable because of their uniqueness and authenticity.

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