SPOKANE, Wash. — If you’re one of the few who have not heard of cryptocurrency or NFT’s, don’t feel left out.
Many are just now hearing about this new-fangled stock market and how it’s made some people rich. It’s nearly impossible to browse social media now without seeing someone promoting a new cryptocurrency or NFT collection.
So, what is it? Cryptocurrency is basically a digital currency that fluctuates in a virtual stock market. People can convert their real money into a virtual form and use it to buy things or invest it in different online markets.
It’s called cryptocurrency because all of its funds are encrypted, meaning it’s more secure. Since crypto is in its own private market, all of its trading is disconnected from banks and governments, making it a very unique form of payment.
The most popular form of cryptocurrency is Bitcoin. Bitcoin was the first cryptocurrency ever created and made many people into millionaires. Early bitcoin investors saw its market price skyrocket once it started gaining traction. Some bought one bitcoin for one dollar in 2011, whereas one bitcoin is worth about $37,000 now.
Many other cryptocurrencies are trying to mimic that Bitcoin boom. Ethereum is another form of crypto that has been taking off recently, mostly due to their introduction of NFT’s.
If you opened Twitter recently, you probably saw at least one person flexing their new NFT. Short for “non-fungible tokens,” NFT’s are a one-of-a-kind digital asset that people can only buy with Ethereum. The most common form of NFT’s is digital art, which can sell for some ridiculous prices.
Celebrities are jumping on this new, expensive trend too. Jimmy Fallon, Stephen Curry, and many more celebs purchased NFT’s for hundreds of thousands of dollars. Jimmy Fallon’s NFT is valued at over $200,000.
The most popular NFT’s are from Bored Ape Yacht Club, a digital artist that sells many colorful variations of the monkey you see above. You may be asking, why would anyone pay that much for some picture of an ape? Well, the buyers have their reasons.
The hope is that the value of NFT’s will rise over time, meaning those buying these digital photos can re-sell them in the future at a higher price. However, based on how the cryptocurrency market has been acting lately, NFTs could be a disaster waiting to happen.
The crypto market took a hard fall last week, with an estimated $1.4 trillion disappearing into thin air. Most cryptos are slowly climbing back, but it goes to show how unreliable the crypto market can be sometimes.
While some are cashing out now, others are holding in hopes of another spike. People are putting their life savings into crypto, and only time will tell if their investments actually pay off.
While it has made some people millionaires, crypto newcomers could be in for a bitter surprise.
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