As we know, NFT or Non-Fungible Token is a crypto technology like a digital certificate, which certifies that a party owns a virtual work of art and is linked to a large blockchain system.
But, what exactly is NFT? How can Beeple’s digital works sell for US$ 69 million? Or, Twitter CEO Jack Dorsey’s first tweet that sold for $2.9 million? Oh, and there’s also NBA Topshot, which sells NBA basketball game moments and once sold Lebron James highlights at the highest price of 200 thousand US dollars!
Those are all examples of digital works where people dare to buy them at prices that are not cheap. Not a few people say, “why do we buy expensive digital works?” In fact, we can see it on the internet for free?
Actually, this has a little to do with human psychology and the way humans value things. Because, the way we value an item begins to change because of technology.
Well, if we take it literally, NFT stands for Non-Fungible Token, which if translated into Indonesian, Fungible means replaceable, and Non-Fungible means irreplaceable. This means there is only one and it is very unique!
For example, we want to buy a bag with brand A for 200 thousand Rupiah, we don’t really care which bag we get. In fact, brand A produces thousands of bags with the exact same model and color for sale. This means that the bag is replaceable.
However, imagine if we have a certain item. For example, one bag that we care deeply about and have been with us for many years. We will assume that the bag is an original bag and is different from the others. That’s what makes the way we judge the bag is different, thus making the bag irreplaceable.
Well, so, Non-Fungible Tokens are irreplaceable tokens. Another example of an irreplaceable item could be a Monalisa painting. So, NFT can be regarded as a sign or certification of ownership of an item, most of which are digital works of art, such as images, songs, memes, or other content in any form uploaded on the internet.
The process of forming the price of an NFT is also basically like painting. The most important key is to find the next buyer who is interested in the item. Because the price of the previously purchased NFT is the last price, the sellers will open a new price which can be more expensive or cheaper than the price they bought.