Tyler Wright | Financial Freedom

Tyler Wright | Financial Freedom

27-01-2022

13:19

Them: What is a NFT?? Me: So it is essentially a way digitally authenticate... THEM: STOP! Explain it to me like I'm 5! Me: Say less, let's do this... 🧵 A THREAD 🧵 //

1/ Ok, let's break this down. First, NFT stands for NON-FUNGIBLE TOKEN. Fungible just means an asset that can be swapped for another asset of the same kind. For example, The US dollar is fungible. You can take 1 dollar and exchange it for another dollar. Or 4 quarters.

2/ You don't care what dollar is which, because you know they are both worth the same amount. So what is NON-fungible? Non-Fungible describes a unique asset that can't be swapped for another asset in the same class. It also usually cannot be divided up. For example, Art.

3/ So for now, think of a NFT as a DIGITAL collectible. Here are some examples of things that could be made into NFT's: -Art -Sports Cards -Event Tickets -Videos -Music Albums -Digital Property -Anything really that you could want to prove digital ownership of

4/ Question everyone is thinking: Can't I just screenshot them? Well just like you can't take a picture of the Mona Lisa and resell it for millions, you can't just screenshot a NFT and sell it. Why? Because like the art, it's about OWNERSHIP of the AUTHENTIC ORIGINAL and

5/ NFT'S prove digital ownership by using the "blockchain", which is just a fancy way of saying a digital ledger. A ledger is just like a checkbook. A log of transactions. So when a NFT is stored on the blockchain, it can be easily proven who has ownership of the original.

6/ So what makes a NFT worth anything? Again, let's go back to art. What makes art worth anything? It could be the artist. (DaVinci) It could be the rarity (Kobe Rookie Card) It could be the community and its exclusivity (CryptoPunks, pic👇)

7/ Or it could be the NFT's "utility." Utility just means how it can be used. Not all NFT's are just digital clout and collectibles. Some other uses may be things like access to: -Special events -Special deals -Exclusive Memberships like Gary V's all new NFT Restaurant👇 🤯

8/ So let's summarize everything: NFT's are digital, non-fungible assets that use blockchain technology to provide owners with confirmed authenticity. People buy them as collectibles hoping they will go up in value, and/or to be a part of a community and/or for their utility.

And if I wrote this thread correctly, then you now understand what all those words mean. 💯 If you enjoyed this thread, then please do 2 things: 1. Follow me so you see my future threads diving deeper into NFT’s & Money. 2. Please Retweet the original tweet below, thanks! 👇

For those who don’t know me, My name is Tyler Wright. 👋 I am a 28 year old Financially Free Millionaire with 70k followers across 3 platforms. Check out my profile & follow me @definingwealth if you’re interested in: -Making more money as well as -Stocks, Real Estate & Crypto

Here’s an awesome video from @CJ_Johnson17th that explains more about the utility of NFT’s that I referred to earlier in this thread. 💯



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