In the latest online gold rush, NFTs have been popping off quite a bit. The reason is straightforward. Since the dawn of time, humans have chosen to establish their status in society by showing off their wealth. One of the best ways to do this is to spend your money buying something unique, scarce, and whose ownership you can verify. Now, the last part was never a problem in the physical age as things were more tangible.
In this modern digital age, however, proving the ownership of an object is not an easy task, especially if that something is a popular image, song, or video clip. So, when cryptocurrencies came on the scene, they provided everyone with a new way to define ownership. Since the supply of crypto is limited, you can easily track the sale chain and identify the actual owner with sufficient info.
Therefore, when great people saw this crypto tech, they quickly started thinking of incorporating it into digital transactions. One of the results of this endeavor was Non-Fungible Tokens or NFTs. The way it works is by assigning a piece of art a unique ID on the blockchain. Once that is done, people can use the ID to track where it went whenever someone sells that art piece.
When Bitcoin’s value skyrocketed, people took notice, and crypto became a part of the mainstream. Finally, in 2020, when rich people were bored in their homes with a lot of money to throw around, they came across NFTs and started to sink their teeth. NFTs managed to spread everywhere in a matter of days, and art pieces began being sold for three to four figures.
Even the celebs joined in after seeing this mania. Many legendary bands came out of their retirement and announced that they would be selling a piece of their music history as NFTs. Announcements like these worked as the perfect fuel for this NFT fire. Even corporations found it very hard to resist and started investing big bucks. All of this led to many NFTs selling for ridiculous prices.
Amidst this, news reports started cropping up about NFTs that sold for hundreds of thousands of dollars. The tipping point came when Justin Sun, a celebrity tech entrepreneur, bought rock jpg for half a million dollars. At this point, all bets were off.
This brand of crypto-collectibles has been around 2017, and there are only 100 of them. It has seen a significant surge in their sales due to this whole phenomenon. On the website, you will see the following thing written.
“These virtual rocks serve NO PURPOSE beyond being able to be bought and sold, and giving you a strong sense of pride in being an owner of 1 of the only 100 rocks in the game :).”Etherrock website.
In a matter of two weeks, the price went from $97,716 for a rock to $305,294 three days ago, and now it hit the peak of $1.3 million. This sale has also raised the price floor for the other rocks to $1.02 million.
Now, it may seem that everyone involved in this has gone insane, and frankly, they have. But, this is just a testament to the prowess of this technology as we usher into the new era of digital assets. This one is going to be a fun ride!
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