That face you pull when you find out that a meme is selling for thousands. Yep, that’s right, viral sensation ‘side-eying Chloe’ is selling the original image of the meme for thousands of dollars at auction.
You may be wondering how that even works. The rise of the non-fungible token (NFT) market means that digital images can now be sold as if they were physical pieces of art.
Let’s get the lowdown on all things NFT.
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How can a meme be sold for thousands?
The world is changing rapidly. The rise of digital has affected how we communicate with each other, how we go about our daily lives, and even how we invest.
The definition of what is deemed valuable is changing day by day. So it’s no surprise that the original versions of popular online content, like memes, are becoming a new form of modern art.
You can sell things like a viral meme or Tweet as an NFT. This is a digital certificate of ownership for the content. It basically allows it to be sold as if it was a piece of physical art.
In lots of cases, the ‘artist’ retains the copyright of their work. They can then continue to produce and sell copies of it. But the buyer owns ‘the original’.
The NFT market has boomed recently, with some items selling for millions of dollars. NFTs are being hailed as the digital answer to collectables.
Is it worth buying an NFT?
Any type of investment carries risk. But when you buy a collectable, its value is based on its uniqueness.
When you think about buying a traditional work of art, such as a painting, it is usually valuable because it is one of a kind. An NFT ‘tokenises’ the artwork, giving it a digital certificate that can be bought and sold.
As with cryptocurrency, there is then a record of who owns it. It is all stored on a ledger that is maintained by thousands of computers around the world.
NFTs are a new type of ‘valuable’. While people are enthusiastic right now about this new world of digital ownership, we could be looking at a bubble. So it may not be the best idea to run out and try to purchase the original of your favourite meme just yet!
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Take home
It is interesting to see how markets develop to integrate digital innovations. The rise of cryptocurrency and things like NFTs provide new ways for people to invest in the things that interest them.
But it’s all untested. While it may be the new flavour of the month, it comes with huge risks.
While no type of investment is risk free, there are better ways to make your money grow. Historically, investing in shares has led to higher long-term returns. Although past performance is not an indication of future results.
So, if you are interested in investing in something, maybe start small with a Stocks and Shares ISA. This will give you an opportunity to invest along with all the tax advantages of an ISA.
The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
