By: Korey Moore, Co-Editor in Chief
Amid the rapid rise of cryptocurrencies such as Bitcoin and Ethereum comes the introduction of a new form of digital goods, one of which has spawned a flourishing market for digital artwork and other goods. Non-fungible tokens, more commonly known by their acronym NFTs, have become a modern craze of digital creators, one that offers immense opportunities for financial growth for this group.
NFTs are a form of digital goods in which each unit is not interchangeable (non-fungible) with other units of its type, as fungible currencies (such as the U.S. dollar and all other forms of traditional currency) are. They may take a variety of forms, such as digital collectibles, media posts, or simple artwork. NFTs are stored on digital software known as blockchains, and blockchain technology makes it impossible for NFTs to be replicated, and thus each NFT is completely unique; no identical NFT exists, and each has a sole owner, whose rights as the owner of such are protected by blockchain technology.
NFTs, which are sold on a variety of different platforms such as OpenSea or Rarible, have spiked in value as a result of their popularity. CryptoPunk, Bored Ape, and Retirement Club NFTs have come to amount to, on average, 6 figures in USD. This offers highly lucrative opportunities for digital creators, who have the opportunity to have their work published, uploaded to a blockchain, and sold for a fortune.
Various River Hill students have weighed in on this hot topic, many expressing the belief that NFTs can be screenshotted. However, such a belief arises from ignorance of the true nature of NFTs; with each NFT stored in the blockchain is also stored the owner’s exclusive rights as the owner of such an NFT. “It all comes back to blockchain,” as sophomore Sheryl Li explained simply. NFTs are analogous to a historic piece of artwork that is replicated by modern artists; while many may possess a copy, only one may own the original, and this is a cause of great status for the owner. It is thus that screenshotting NFTs do not have the value that they are purported to; while individuals may screenshot NFTs to obtain copies of them, they may not come to own such, as ownership status is protected by blockchain technology.
Luke Rodell, a River Hill senior, has taken a great interest in this rapidly expanding industry, explaining that “If I saw some kind of opportunity, maybe I might get into it.” When asked about if he intends to invest into the NFT market, he replied: “I’ve thought about it, but at this point I don’t think I have enough information to say that I’m definitely not going to get into NFTs, but like I said before, if some type of opportunity arises that I think I can smartly invest into, I think I will get involved.” Ultimately, Luke has expressed that he is continuously monitoring the situation, “watching other people do it,” continuously seeking an opportunity to intelligently invest into this hot market.
Luke also pointed out that NFTs are “a lot like stocks; I think there’s a stupid way to invest into them and a smart way to invest into them, and if you take the smart way you can make a lot of money.” And it’s true. The NFT market is not merely for artists; it may be viewed as the newest form of stock, and investors may also exploit the opportunities that they offer, purchasing individual NFTs, waiting for their value to appreciate, and selling them.
Overall, NFTs offer a multitude of economic opportunities to a variety of economic groups. River Hill students have taken interest in this new innovation, which is virtually impossible to ignore amid its growth. With the ability to sell digital artwork in many forms for a great fortune, it potentially holds the future of the art industry, with vast opportunities even for River Hill students.