On the 20th of January, Neymar, who is one of the most famous athletes in the world with
over 170 million followers on Instagram, tweeted that he had just purchased the
picture of this ape (Bored Apes #6633) How much do you think he paid for it?
$10, $50, or how about $100. The answer might shock you. If you
are not ready for such an answer, please turn off the video because the picture of his ape
cost probably more than your house. Neymar paid 159.99 Ethereum (ETH), or $449,739, for a pink
ape outfitted with flashy futuristic glasses. But that's not all. He also bought Ape #5269,
which is an ape with lasers coming out of his eyes, for 189.69 ETH or $533,228.
Even for a celebrity like Neymar Jr, spending a million dollars on 2 digital arts that you can
literally copy and paste is considered a lot. However, a million dollars in the world of NFTs
is peanuts. Checkout Everyday: the First 5000 Days. It's a 5000 art collection of
Beeple’s artwork which was sold for $69.3m. Yes, you heard that right, almost 70 million
dollars. But the most expensive NFT ever, was sold on the 2nd of December 2021 for $91.8m.
So if you are wondering how much money can be made with NFTs, the answer is pretty simple - a lot!
Why are investors willing to pay that much money for these paintings? Why could they potentially
be worth much more in the future? And how are teenagers making millions of dollars through NFTs?
We will answer all of these questions and many more. If you are ready, smash
that like button and subscribe.
Paying millions of dollars for some digital art sounds insane, but in the age of the internet,
paying so much money for any kind of art is insane. Let’s take a look at the most famous
piece of art, Mona-Lisa. It’s believed to be worth more than $850 million, 9
times more than the most expensive NFT ever sold. We can debate forever why physical art is worth
the money while digital one doesn’t, but the fact is, in the age of the internet,
we can make a perfect copy of anything. Even the Mona Lisa. So, that begs the question - if
we can create as many copies as we want, why is Mona Lisa still worth 850 million dollars.
The answer is simple - Scarcity. It was drawn by Da Vinci in 1503. While you can create a copy,
the Mona-Lisa that was painted by Da Vinic over 500 years is only one, and there is not going
to be a second one because, first of all, Da Vinci is no longer around, and secondly,
you can’t claim that your copy of Mona-Lisa is ove r 500 years old.
In other words, we humans are very irrational creatures, and we are ready to overpay to
have things that others don’t to show our status in society. That's why some people
pay hundreds if not millions of dollars for a Rolex watch that does exactly what
any other watch does - tells the time. Or pay thousands of dollars for a t-shirt
that were only a limited number of them produced. Whether you think that's dumb or not,
that’s a topic for another video, bu t that's a fact. That’s exactly what NFTs are for.
After the French Revolution, Mona Lisa was moved to the Louvre and changed hands multiple
times. On 21 of August 1911, the painting was stolen but was returned back a few years later.
After running dozens of tests, they confirmed tha t this painting is most probably the one that was
drawn by Da Vinci. However, if, back in 1503, Da Vinci had turned his painting into an NTF,
we would have known every owner of the Mona Lisa since it was created and how it moved hands
over the centuries. Of course, NFT’s didn't exist back then, but that's the point. NFTs are based on
blockchain. A blockchain is a distributed database and stores information electronically in digital
format. So the entire network knows that Neymar Jr is the owner of Ape #5269. You can create a
copy and pretend like it's the original, but no one is going to believe you because it's
all there in the records, and we don't need the middle man to confirm it. The public confirms it.
If you are not interested in Art, NFTs probably don’t make sense to you, but if you are,
this is a game-changer. We no longer need experts and historians to verify whether this
is the Mona Lisa that was drawn by Da Vinci. The moment it's recorded in the blockchain,
no one can steal it or create another copy. I mean, they can create a copy, but everyone
will know which one is the original and which one is a copy because it's being tracked by
thousands if not millions of computers all across the globe whenever it changes hands.
If your favorite Artis designs art for you, the entire world is going to know that this art
was designed for you and it belongs to you, and no one can steal it or claim otherwise.
But what makes NFTs even more exciting is the Metaverse. Metaverse is believed to be web 3.0.
If you want to know what is metaverse and why is it a big deal? Then check out our vidoe on
Metaverse! It’s one of my favorite videos on the channel. But in short, in the last two decades, we
have been building a virtual identity, and instead of smartphones, we will be walking with smart
glasses where our virtual identities will have an entire world of their own. This is, of course,
an oversimplification, but there in the Metaverse, the only way to own things will be through NFTs.
That’s why they are going to be a big deal. I mean, they are already a big deal.
An NFT was sold for over 90 million dollars. Isn’t that a big deal already?!
The main question is, how do you make money with NFTs?
There are essentially 3 ways to make money with NFTs. The first one is of course to create your
own collection. You don’t necessarily have to be the artist. You can come up with the idea
and let someone else paint it for you. I have a friend who is doing exactly that. The question is
why would people buy your NFT? That's where marketing comes into the picture. Your job
is to create as much hype as possible around them. If you convince a celebrity to buy one,
that will create some buzz and will definitely attract attention. Other times, they keep
reselling them among each other to the point where it becomes so expensive and hits the news.
But most people make m oney with NFTs by flipping. An NFT starts getting attention. You sell it,
someone else buys it in the hopes of reselling it for a higher price. Eventually, someone buys
it with the exact same hope. At the end of the day, it's overpriced. It’s like a ticking bomb.
Everyone is just passing it to the other, hoping that
it won’t explode in their hands, but the fact is, it will explode sooner or later!
You can play this game, but you have to know that the moment it explodes,
over 90 percent or probably 99 percent of all NFTs will become worthless.
There are people who are going to make fortunes, but the vast majority will lose.
Who really makes money with NFTs are marketplaces such as Opensea or Looksrare where NFTs are
traded. These people make millions regardless of which NFTs are getting the attention, and once
the bubble burst, they won't lose anything. They will just stop making so much money.
They charge around 5 percent per trade. That's a lot! $5 billion worth of NFTs has been sold
on OpenSea alone as of January 2022, which means the platform has earned over 250 million dollars.
NFTs probably have a bright future. But in the short run, some people will make fortunes, and
most people will lose money. Especially since we are heading into a recession. During recessions,
risky industries suffer the most because people simply have less money to spend.
Thats why its important to consider the stock market. If you are new to
the stock makret. Checkout my course on skillshare. You can try skillshare for free
using the link in the descrioption or get at least 2 free stocks by signing up to webull,
the link is also in the description. Thanks for watching and until next time.