Stoners Guide to NFTs | Cannabis Life Network

Initially, cryptocurrency was an annoying topic with people not shutting up. Now they have become NFTs. But what exactly is an NFT and why would anyone want to buy one? Depending on who you ask, NFTs are either the hottest new investment or a silly trend and waste of money. If you are unfamiliar with the subject, you should know that the concepts are not as complicated as they seem. Light up a joint and get ready for the cannabis guide to NFTs.

If cryptocurrency is a completely new topic for you, click here to read Cryptocurrency, A Stoners Guide.

What is an NFT?

An NFT is a digital certificate that proves ownership and is verified using blockchain technology. It’s a way to transform either a unique physical or digital asset into a one-of-a-kind collectible. Real and digital art, music, audio clips, PDF documents, articles, twitter tweets, ticket stubs; All of these things can be converted into NFTs because they are non-fungible. Once created, it can be bought or sold for any type of currency, and all transactions are recorded in a public ledger.

Not fungible?

NFT stands for Non-Fungible Token. Basically this means it cannot be shared or exchanged for another item as it is a one-of-a-kind item. For example, exchanging a Renaissance painting for a two-year-old’s drawing is not an equal exchange. You also can’t take an artwork and split it up into bulk copies. Sure you can replicate it, but the copy won’t be authentic. In addition, the quality can vary greatly.

Stoner’s Guide to NFTs

Default currency is an example of fungible items; You can exchange a $10 bill for ten loonies without affecting the overall value. NFTs are different; they are not interchangeable. If you try to trade your NFT, you may end up getting more or less than what you originally paid for.

What are the benefits of NFTs?

Secure investments and transactions

When you buy an NFT, the creator, the buyer, and each transaction are recorded on the blockchain. This ledger is public and everyone has a copy, making transactions much more trustworthy.

Profit potential in two ways

When you buy an NFT, you get both a collectible with resale potential and a digital asset. From there, profit margins can increase in two areas: the value of either the collectible or the exchange rate of its registered cryptocurrency.

Here’s an example of what that might look like:

Imagine going back to the days when a movie cost a penny, bought the ownership rights to “Casablanca” and kept it to this day. You could sell those rights for a lot more than you paid for. Also, those dollars could go much further depending on currency inflation.

Helping artists avoid starvation

Ultimately, NFTs are a great benefit to the art community because:

• They have created new platforms for artists to sell their work to allow for maximum exposure.
• It’s an investment trend with a lot of hype and motivates people to spend money on art.
• Transactions are simple and secured by the blockchain.

• It makes it easy to authenticate an item and add value to it. This is important as it expands the scope of what can be sold.
• NFTs offer artists more ways to get paid without risking creative rights.

Here’s an example of what that might look like: Johnny makes music and has created a YouTube channel to showcase his work. He posts links to free downloads to get his vibes mainstream. Johnny can turn any song into an NFT and sell the copyrights for cash. Once sold, Johnny will no longer own this piece of music, but he still retains his creative rights; Because of this, Johnny doesn’t have to change anything about his channel and can continue to post links to free downloads.

Added ownership perks

Why do people spend millions of dollars on NFTs? The answer is the benefits of ownership. Many NFTs have real benefits, and sometimes they’re so good they drive the price into millions of dollars.

The Bored Ape Yacht Club creates digital cartoons that sell for outrageous prices, but not for the artwork. Owning one of their NFTs grants you access to additional free collectibles and invitations to exclusive in-person events. Last Halloween, the Bored Ape Yacht Club threw an “Ape’s only” fancy dress party in New York City. It was held aboard a 1000-person luxury yacht and only NFT owners were allowed into the party.

NFTs are currently considered a high-risk investment with high growth potential. Over time, it is possible that they will be adopted into mainstream use, but only time will tell. We hope this stoner’s guide to NFTs can help our stoner friends with their investment decisions. Let us know if the topic was insightful in the comments below and don’t forget to follow us @cannalifenet.