As your hometown bank, we want to help you make educated financial decisions. That is why we did the research on the newest investment buzz-phrase, NFTs. Below is what we found as an introduction to the topic. We believe it is important to always weigh the risk and reward when you make any financial decision.
When it comes to financial sense, little sense can be made from NFTs. We’ve seen this acronym all over the internet for the last year or so when they went mainstream, but NFTs themselves actually started in 2014. To put it simply, NFTs are sort of like owning an original Matisse painting. People can copy it or try to mimic it, but there is only the true original owned by you.
NFT stands for non-fungible tokens which means they are not “fungible.” To be fungible means to be able to trade something one-to-one like a bitcoin for a bitcoin. NFTs are not like that because each token holds a different value than another due to its uniqueness–we know it’s very convoluted. When it comes down to it, NFTs are currently just like trading cards for the ultra wealthy.