Last month, the Charlie Bit Me video was auctioned and sold as a non-fungible token (NFT) for a whopping £500,000. As the boys in the video use this money to go to university, you might be wondering how you can make such a large sum of money using a video, audio image, or text you create.
Let me tell you about NFTs. An NFT is a non-fungible asset, which is something digital that you own that you cannot easily exchange because it has a lot of unique qualities.
In contrast, fungible assets are those that you can easily assign a value on and interchanged. A perfect example of this is a dollar, which you can exchange with another dollar so you still get the same thing at the end of the day.
NFTs do not work the same way. If you have, say, an original digital painting, you certainly can exchange it with another digital painting, but you will get an entirely different work of art.
Basically, an NFT is a certificate saying that a person owns a digital piece, whether it is digital art, song, text, or video, just like Charlie Bit Me, Nyan Cat, and CryptoPunks collections.
So, what makes NFTs special? The thing about something that you create is that there can only ever be one original copy of it. Think about the Charlie Bit Me video, for example. People may be able to download, make copies, and make song remixes of it, but the reality is, there is only one original copy of the footage that comes with an NFT.
To make money off your creations, you need to make sure that they are one-of-a-kind. They must be desirable for collectors, just like how people collect art and rare Pokémon cards. In fact, many people hope that buying NFTs will reach the level of art collecting.
When you make a really good video that goes viral, is shared millions of times, and liked ten times more, you probably have a potential NFT in your hands. The question now is: Will you sell it?
The best answer is yes, sell it if you are willing it. After all, you can potentially earn thousands of dollars off of it. Plus, you also have the option to get one-time earnings or get more every time the NFT is sold to a new owner. The ownership of the piece can be tracked using blockchain, the same technology used by cryptocurrencies to monitor transactions.
Now if you are a buyer, this is where things get interesting. Say you have your eyes on an image that has not yet gone viral but you believe it can. You can purchase it and tokenize it, then sell its NFT to a collector. You can make money by printing the image on a few garments to create limited edition t-shirts, and by selling the NFT to a collector.
NFTs offers a great opportunity for creators, buyers, and collectors alike. If you want to know more about how it works and how you can use it to your advantage, let me know by clicking the link below.