What is an NFT? Explained in Simple Terms

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I explain NFTs (Non Fungible Tokens) Crypto, what are NFTs, and NBA Top Shot is, and why I spent $25,000.

NFT's have been quietly gaining popularity along in the news as of recent, Logan Paul recently created 3000 of his own NFTs and sold over 1700+ of them totalling about $3.50 million dollars in the first day.

NFTs, to make this AS easy as possible to understand, think of them like digital collectibles or digital art that use blockchain technology to validate and authenticate them.

"NFT stands for Non-FUNGIBLE Token" , and the root word "fungible" means that it is "interchangable". This is the keyword.

Dollar bills/currency - I could give you either one of these dollar bills, and to you they're probably the same, each one can have purchasing power, and they aren't really unique.

Now imagine you have an artwork that has a limited edition, #1 of 3. If i gave you #1, but you wanted edition #2, they aren't the same. They're unique in that they're numbered. The edition #1 is not the same as #2.

So Physical Art is non fungible. If you buy a limited edition artwork from Banksy for example, you are the sole owner of that edition of art that he produced, and the value of that art comes from the fact that it's one of few versions, and that Banksy made it.

What are NFTs and Why I chose NBA Top Shot as my preferred place of investing:

I chose NBA Top Shot to get into NFTs, and the reason is that its officially licensed by the NBA, and runs on a blockchain that was created by the makers of the original NFTs - Cryptokitties, from 2017 - that company is Dapper Labs - which by the way, has raised over 52.5 million dollars from prominent venture capitalists.

Because of the partnership, I felt that it was less risky to buy NFTs on Top Shop since there was always going to be a market for these NFTs that as long as the NBA and this organization existed.

Each card has scarcity that's been set, and if the NBA is a governing body that is endorsing it. This solves for a lot of market and liquidity issues we spoke about earlier.

So yes, while there is platform risk by buying trading cards on TopShot, I am hoping that the liquidity and continual endorsement and development of it by the NBA is always going to be there.

It's a reason as to why I decided to put $25k of my cryptocurrency into cards on TopShot.

In my view, I had invested $5k into Ethereum back in March of 2020 at an average of $130 a coin, and since it's trading for well over $1500 now, I wanted to take some of those profits off the table and diversify into a new space. Another reason that solidified TopShot for me was that it was plain fun and the market was growing.

▶️ My name is Humphrey Yang, I've built multiple businesses and am passionate about Personal Finance. If you're trying to build a solid foundation of financial literacy, learn to invest, or become financially free - then I'm here for you! This channel cover topics like getting out of debt, managing money, building credit, multiple income sources, passive income, etc.

Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!

[humphrey]

How fungible are you feeling? LMK in the comments!! Thanks for checking out another video of mine, subscribe and scroll up and hit that like button!

[coltykuu]

Dude, video quality through the roof. Love that your brought in an expert!

[masiahmad]

Never heard of NFTs but seems very interesting, thank you for the info Humphrey!

[ZaidProductionsXO]

Great video quality. You improved alot!

[jeremydudet]

This video was fantastic! Congrats on that ROI - really cool :)

[Herman]

Dr. Humphrey.... The only financial man I trust with info

[Bangpaulxu]

Great vid, this is quite interesting. More people will get into this as time goes on.

[LeoLeo-ikir]

Very easy to digest your explanation on Art, Blockchain and NFTs. I think you are making a safe bet by going with Dapper + NBA + Steph Curry + Limited eds; applying some of the principles Kristie said. It is a smart move to also take some profit off to ETH to move into a new frontier for dipping your toes. Nicely done, Humphrey! Always enjoyed your videos :)

[cryptogno]

Origin Protocol is currently conducting a live auction of international artist 3LAU's album entirely on NFTs.

[Officialalmate]

That intro was a nice improvement to your videos, gives me MrBeast vibes

[ziyanbaloch]

1) It's literally just a digital good/asset that I could pay for with regular money.

2) Kind of only applies to the individual creator marketplace, (instead of the NBA, which is a certified organisation that can maintain and verify exclusivity of the card since they're the sole issuer) but anyone could literally copy the same token as another creator.

[WillsThoughts]

Am i the only person not hyping these or exuberant of these going to the moon?

[calvinchi]

So if you buy the NFT, are you then able to sell it at anytime?

[setapart]

I have a bunch of baseball cards and comic cards. Can you use NFT's to trade them?

[CharlieChang]

I feel like a fungus for not getting any NFTs

[EccentricMiller]

I don’t mean to sound difficult, but can’t an individual just look at an NTF, screenshot or screen record it, and have the same piece of art?

I understand that you can google a photo of the Mona Lisa and print it out, but there are physical differences.

But I don’t see the difference in the the digital forgery. Can somebody help me out?


P.s. Congrats on the gains Mr. Yang 😁 I always enjoy the videos. You’re my favorite Finance YouTuber!

[stephanashley]

Woow, I really love how techonolgy is evolving. After watching this video i sent it to two of my friends who are great at art. Hopefully it can be a success for them

[acek]

weres the tangable card at? So someone can produce the card and make it rare too the common person or am i missing something

[drodizzle]

I feel like this could either be a hit or miss with the public. I can't imagine a large amount of people wanting to own art that is non-tangible. I am biased of course but good luck with your investment!

[louietraub]

When Humphrey and Gary Vaynerchuk both drop a video on NFTs on the same day you start paying attention. Now point me to the penny NFTs! 😂