Believe it or not, the current frenzy sweeping across the internet mainly revolves around a single question – why on earth would anyone shell out a whopping $725,000 for a digital token of my column? That’s right, a staggering sum for my freely accessible online article.
If you’re wondering just how this digital insanity happened, it started with a picture I posted online. The next thing I knew, I was in the middle of a lavish crytpocurrency bidding fray. In simpler terms — the whirlwind world of nonfungible tokens or NFTs had ensnared me. Now, isn’t that some kerfuffle?
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The Beginning of Bitcoin
While historically stable commodities like silver and gold – be it 1 kg or 1 gram gold bars – still remain valuable and sought after today – it’s important to acknowledge that there’s something new worthy of consideration. Long story short, the history of NFTs is closely entwined with the origin of cryptocurrencies, particularly Bitcoin. Born out of the 2008 financial crisis, the idea of digital money was proposed by an elusive character known as Satoshi Nakamoto under a veil of anonymity.
Rather than a centralized system controlled by institutions, which may manipulate the value by printing more currency or retaining it — Nakamoto suggested a decentralized digital currency system. The system caps the number of bitcoins at 21 million—no more, no less. This is ensured by blockchain technology. One wonders why it hadn’t been thought of before!
So you’re likely scratching your head, thinking, But what is this blockchain? Here’s what’s surprising – it’s merely a network of computers, spanning the globe, that documents every transaction involving bitcoins.
Imagine it like a global spreadsheet laid bare to the world—transparent, public, and permanent. Each time a Bitcoin changes hands, its record is updated, and anyone and everyone can monitor those changes. No one individual or institution holds the reins. Hence the sense of trust that Bitcoin enthusiasts derive from this system – a system devoid of possible governmental or institutional manipulation.
The Upsurge in Digital Art
If you really think about it, it was only a matter of time before this crypto-mania expanded to other forms of assets. Who knew it would evolve into selling freely accessible digital content like my column online? And so, the advent of NFTs has opened a gateway to trade digital art as unique tokens of value.
Some might say this whole saga of virtual and physical investing is merely a speculative gamble. But who knows? The surge in digital investments might revolutionize traditional concepts of value and ownership.
My column, which cost someone a staggering $725,000, serves as a testament to the inexplicable world of NFTs — the uncharted territory of digital-physical investments.