“NFT stands for “Non-Fungible Token” – simply put, it is a certificate of ownership which is stored in a decentralized data record. Its value is determined by its creator and holders who provide consideration and conveyance by exchange of something of value.
So wait, why is it a “non-fungible” token?
In economics, a fungible asset is something with units that can be readily interchanged – like money. With money, you can swap a £10 note for two £5 notes and it will have the same value.
However, if something is non-fungible, this is impossible – it means it has unique properties so it can’t be interchanged with something else. It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be one original painting.
NFTs are “one-of-a-kind” assets in the digital world that can be bought and sold like any other piece of property, but which have no tangible form of their own.
The digital tokens can be thought of as certificates of ownership for virtual or physical assets.
NFTs, or nonfungible tokens, are unique assets that can’t be replaced with something else, and are verified and stored using blockchain technology. They can include everything from music to a website domain, but the current craze is really around digital artwork.
The market exceeded $10 billion in transaction volume in the third quarter of 2021, according to DappRadar, a company that tracks data on crypto-based applications.
Why would I buy an “image”?
Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?
Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those “digital bragging rights” almost more than the item itself.
Yes, you can resell your NFTs!
The secondary market for NFTs is certainly growing at a rapid clip. According to Crypto Art, the secondary market has drastically increased in size over the last three months. In March, the secondary market on SuperRare, the second biggest NFT marketplace, accounted for 36% of its NFT sales volume.
What can I get for a flip?
We encourage buyers of Galactic NFTs to add a golden mean logarithmic ratio to their purchase price when reselling. For example, if the initial purchase was 1ETH, you could resell at 1.618ETH. The next resale would be 2.618ETH, then 4.236ETH and so on…
Phi Φ0 Φ1 Φ2 Φ3…
Base Value in ETH
1.0000♦ ETHApproximate Exchange Rates:
◦ BTC: 0.066668
◦ EUR: 1845.627634
◦ USD: 1972.699506