What are NFTs and why are some worth millions?

Source | BBC

A digital-only artwork has sold at Christie’s auction house for an eye-watering $69m (£50m) – but the winning bidder will not receive a sculpture, painting or even a print

Instead, they get a unique digital token known as an NFT. Where Bitcoin was hailed as the digital answer to currency, NFTs are now being touted as the digital answer to collectables. But there are plenty of sceptics who think it is all a bubble that is going to burst.

What is an NFT?

NFT stands for 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 cannot 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 the one original painting.

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Acid House | Collectible NFTs