Okay.
So now
we're coming to terms with
maybe our digital lives
will be important
at some point, maybe
maybe not more important
than our physical lives.
I'm not ready for that yet,
and that's okay.
But if your digital
life can be important,
then we understand
that something like
being able to trace
ownership of digital items
will also become important.
And this is where
I want to talk about
NFT as it stands
for Non-Fungible Token,
which in my opinion
is not helpful.
Fungible is not a word
that I ever heard before.
I heard the word
non-fungible.
Fungible means that
it's replaceable,
that it's not unique,
can be interchanged
with another identical item.
An example of a fungible
item would be dollar bills.
I have $2 bills
kind of behind my back.
Switch them up,
pull them out.
Do you care
which one I give to you?
No, you absolutely do not.
You just want a dollar
and it doesn't matter
which one it is.
But now we have these same
$2 bills and Travis Scott
comes and signs
one of these.
Do I care? Probably not.
But do some kids
on Fortnite here?
Yeah, they absolutely do.
This dollar bill
is no longer
the same dollar bill
as this one.
It makes it nonfungible.
It cannot be replaced
by the other.
You know,
if you are a kid
in Fortnite, exactly
which dollar bill you want.
Some key characteristics
of Non-Fungible tokens
is that they are unique,
like we described that
they are digital,
that is important,
that they are tradable
and that they are traceable
on the blockchain.
Let's talk about some sort
of potentially ideal
situation in the space.
Right now
there is a collection
coming out
and the art
looks pretty dope.
And then you find out
the artist actually
from the Lego movie
like that would be
a big deal, right?
You're like,
I trust that guy.
That guy is probably
a good artist
if he got hired on
for the Lego Movie
and I really like that movie
and that had good reviews,
this guy's probably
got something up his sleeve.
We trust this guy.
That is an example of
good art
with a reputable artist
who probably has
some connections
to make some things happen.
Now, let's say
you find out that
this artist
is actually releasing
a collection of these
different skins,
and hopefully at some point
you can rock that
skin in the metaverse.
Why would it be important
for that guy to have
good connections?
And the answer is
because it's important
that you'll actually be able
to use that skin
in the metaverse.
How on earth are you going
to get this digital image
into this
metaphysical space?
We want people
who are committed
to where I'm like,
if I'm paying thousands
of dollars for this skin,
which is what they're
valued at right now,
they're valued at
thousands of dollars,
you know, hundreds
if not thousands of dollars,
then it would be
very important that these
people are committed,
that these artists
and developers are committed
to this artwork,
to these collections,
to make sure
that it translates
not just from you
buying an NFT a picture,
but it'll translate
into some kind of cool
metaphysical experience.
So another thing
that you look for
is this
utility aspect in a roadmap.
This could be
anywhere from gaming
like we've talked about
to off chain experiences.
And when I say off chain,
I just mean
off of your computer.
Like Lego guy is like, Hey,
we're going to
throw a party in L.A.
and if you have an NFT
that is your ticket
to this party in L.A.,
you could get merchandise ,
exclusive merchandise,
if you own the NFT
or these things
called airdrops,
which is another thing
that is more so specific
to those that are
really interested in
the NFT is airdrops
in these things
called mint passes.
These are again
when I talked about off
chain or in real life
experiences, that's
just the opposite.
This is your on chain
and your virtual
experiences where
if you own an NFT,
he'll say, You know
what, you bought a skin.
I'm also going to airdrop
you a shirt for that skin.
And so one day the
airdrop just means
that it just drops
out of the air
into your wallet.
So now you're getting
you paid for one thing,
but it's like a
two for one deal.
Additionally,
there's these things called
mint passes or free mints
where if you own an NFT,
you automatically get listed
to be able to buy
another one that
the artist produces.
So let's say he's
releasing
500 of these things
and there's 10,000
people that want it.
But he says it's
only for those people
that have
the free mint pass.
And you're like, Well,
I have the original NFT.
And so that means I
have the mint pass now,
and now you can go and buy
the other thing that 10,000
other people wanted,
but you are one of
the only people to get it.
So you look for things
like these utility aspects
and these roadmaps
where it's not just one NFT,
but this one thing comes
with a plethora of virtual
and real experiences.
And then of course,
you want to make sure that
there's strong communities.
And why do I talk
about this?
When you have a community
of people
that really, really think
this stuff is cool
and you have
a limited supply,
you see an increase in value
typically over time.
So if you are looking to buy
an NFT, sometimes
you can find things
that you just like.
Because you're a collector
and you found it
and it was cool.
But for the most part,
if you want to be able
to resell those things
at some point and again,
this is only important
if you want to be able
to resell those things,
that there would be strong
communities around it
that also have interest.
So that the demand is there
that if you ever
choose to sell it, you can.
So if you're looking to buy
NFT is the most common place
to start is open seed audio.
That'll be your most
liquid environment
to be able to buy and sell.
It'll have most of
the NFT is, but there are
other marketplaces as well.
Just like
I buy
most of my stuff on Amazon,
but I could also
probably buy the same
thing at Walmart.
Some other marketplaces are
rare.
Volcom Magic Eden dial
salon art daddio
digitalized dot market
fcx dot us slash and nfts
and hopefully soon
coinbase NFT
for the 3 million of you
that are on the waiting list
for that.
Maybe by the time
this video is released,
it's already a thing,
but probably not.