Revolution or doomed to failure?

What do digital cats, Twitter CEO Jack Dorsey’s first tweet and a dunk by basketball legend Lebron James have in common? The common denominator here is so-called non-fungible tokens (NFTs), one of the hottest topics in the crypto world right now. But what exactly are NFTs? And what do NFTs have to do with digital cats, tweets and basketball? That’s what today’s episode of Bitcoin, Fiat & Rock ‘n’ Roll is all about.

An NFT is a digital certificate of ownership for a specific (digital) asset, e.g. a digital collectible, such as art, music or even memories. NFTs are characterised by their uniqueness or scarcity, i.e. the supply of NFTs is always limited (“limited edition”). Blockchain technology now makes it possible for the first time to unambiguously prove ownership of a digital item, as the technology prevents these digital certificates of ownership, or NFTs, from being duplicated. Consequently, the possession of a digital good can be proven beyond doubt.

An entirely new asset class is emerging here with numerous innovative new business models, for example in the areas of digital art. But despite all the euphoria, NFTs also come with risks. These include risks relating to the rights of use of the digitally imaged goods or price change risks of the NFTs. Are NFTs a forward-looking innovation that will revolutionize industries, or are NFTs hype that is doomed to fail? More on that in today’s episode.

Bitcoin, digital euro or cryptocurrencies: The future of money is being rewritten right now. With the Crypto Corner, we provide a point of orientation for crypto enthusiasts without falling into a hype. Alexander Bechtel from Bitcoin, Fiat & Rock’n’Roll regularly brings useful and interesting content about digital currencies and especially the digital euro.