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NFTs: How Crypto “Scams” Are Destroying the Environment
You’ve probably heard a lot about NFTs by now but you’re forgiven if you don’t know what they are. Just like with cryptocurrencies like Bitcoin, Dogecoin, and Ethereum — digital versions of money — there’s a bit more to NFTs than just being “digital versions of art.”
With that, they’ve also drawn a lot of criticism from people who think NFTs are silly, since folks are paying top dollar for what’s basically a jpeg. So there’s the criticism that it’s a scam… but even worse, it might also be taking a heavy toll on the environment.
An NFT is a “non-fungible token.” In other words, it’s unique and can’t be replaced with something else. With cryptocurrency, a bitcoin is fungible, meaning you can trade one for another bitcoin, and you’ll have exactly the same thing. You know, money?
If you go to a cashier and ask them to break the 20 into two 10s, you have fungible tokens, in a way. Now, with NFTs, you can’t exchange a Picasso with a Dali? I mean, you could trade them, like you would trade a Pokemon card or a baseball card, but it won’t be of equal value. You’re getting something completely different.
That’s because works of art (or “tokens”) are unique and once you buy them, it’s yours. Kind of.