NFTs. No one really understands them, and, if they do, they can’t explain it without a whiteboard. For those who don’t know, NFT stands for Non-Fungible Token. It’s basically a unique unit of data that can’t be duplicated. You may say, “But they can!” – which is true at some level. However, even though that duplication would be the same, it’s not technically the same because it’s a different blockchain — even if it carries the same data. And that data can be … anything! Music, or code, or even the entire script of “Dune.” The current hype is around NFT art.

It’s similar to the world of art galleries: buying, selling and trading. The difference? It’s completely digital. You can have a copy of the “Mona Lisa,” but it won’t be exactly the same. The actual piece won’t have the same brush strokes. Since the majority of NFT art is being created, sold and traded completely online, some people consider them to be much easier to copy. They don’t see a difference between the piece and a screenshot of it. On a tangible level, there isn’t. The data may tell a different story, but when most people see a cool picture online, they aren’t really staring at the blockchain.

Both cryptocurrency and NFTs are, at their core, just trends. They’re marketed to new investors as an easy way to get into the game, but they simply take money from the naïve and give it to those more acquainted with the game, like a reverse Robin Hood. 

The thing about these types of trends is that, at first, they seem perfect. You’ve been looking for a way to start getting into economic ventures, and this seems like a perfect entryway. And at first, it is! For a few lucky people, this stuff works out. But for the average Joe with a buck to spend on making a few more, it leads to nothing. Or less than nothing. Negative nothing. 

It’s a repeated cycle too. Before NFTs it was bitcoin, and after, who knows. But one thing is true: following the trends doesn’t usually work out. The point in time at which things are trending always comes to an end, and, if people aren’t careful, when that time comes, they’ll be stuck with a bunch of digital art. So, if you’re planning on investing in NFTs, take another look before making a commitment.