What is NFT? Why People Want to Buy Expensive NFT?

What is NFT? Why People Want to Buy Expensive NFT? Who is Ghozali?

Why is he viral?

Why does the price for selfies make you shake your head?

That must be a question for all of you, Ghozali is a young man with a simple dream, consistent with his ways & suddenly the universe answered his prayer.

How come? The answer is NFT

What is NFT?

0. What is NFT?

simple explanation,

NFTs are Non-fungible tokens: unique tokens associated with digital (sometimes physical) benefits that show proof of ownership.

Sir, isn’t it non-fungible? tokens? What is it?

OK, let’s go through one by one.

1. Definition

Fungible: means if you replace something with something, you will get the exact same result.

What is NFT?  Why People Want to Buy Expensive NFT?

For example: You have a tattered 50k note, then see that your father has a new 50k note, you want to exchange your money, the value is still the same 50k.

I realize that the explanation I made in this thread is still too difficult for friends who are really new to NFT to understand.

This is because there is a sequence that you need to know before getting to know NFT. At least we have to know first what web3, blockchain, etc

Non-fungible: it means that it is unique and cannot be exchanged for something else, because it has its own characteristics

For example: You can’t copy the Mona Lisa painting with the KW, because there’s only one authentic Mona Lisa painting in the world.

Now, talk about tokens.

Tokens are a kind of contract that provides benefits to the owner. What does that mean?

For example: you have a John Mayer concert ticket, the ticket is like a token that gives you an advantage so that you have access to enter the concert.

What’s the reason for being an NFT?

2. Definition of NFT

So, NFTs are digital assets that contain unique characteristics that are encoded and stored on the blockchain in the form of smart contracts, and provide benefits to their owners. We usually call it NFT Collector.

Why do these collectors need a contract/certificate?

Yes, to prove its authenticity dong,

Who can guarantee that the monalisa painting is genuine?

We can trust it because there is a certificate, and we trust the one who made the certificate.

Because the certificate depends on who makes it, it can be an institution or a state.

Like buying shares or buying a house, we need a certificate to mediate an agreement between the parties. Only if it’s conventional, we need notaries, banks, lawyers, etc.

Meanwhile, NFT contracts are digital, in the form of lines of code that run automatically on the Blockchain.

So what else is Blockchain, bro?

Why am I getting dizzy?

Now, regarding this NFT, the explanation should be in order, we have to start with web3, blockchain, etc.

But so as not to get out of context from this thread, let’s just finish what is NFT,

do you agree? Gas!

3. Why do we need NFT?

So over the years, many people have developed many ways to prove a work is authentic or not.

Back to the simplest example,

The monalisa painting is very valuable, isn’t it because there is only one original copy in the world, right?

4. The problem

How can we authenticate a work that exists in the digital world? Is it in the form of images, videos, audio, etc.?

How? Can not

People just download, yes or yes?

Because there is no way to prove its authenticity & most people don’t care about its value.

5. Value

Why is it important for someone to know the value of something?

Yes, like an economics lesson, the more (demand) people want to buy a certain product (supply), the more valuable that product–the price will definitely go up.

The point is, the rarer the value, the higher the value.

For example, there is a special edition Rolex watch that costs exorbitantly, but it turns out that a lot of people want to buy it just because there are only 100 in the world.

But on the other hand, there are watches from other brands that are cheaper even though they are produced in large quantities.

6. Framing the problem

Sek, what’s the benefit for them?

Let’s just say, how many public figures do you know they like Rolex watches?

Ex: Raditya Dika, he understands the value of his Rolex Watch, apart from the fact that he likes it, he also invests in the watch.

7. Understanding the problem

So the problem now is that we can’t:

– authenticate digital products

– validate that someone is the owner of the product

– find out how valuable a product is because of its rarity

So does NFT solve this problem?

8. Solution

As we know, NFT is stored on the blockchain with contracts containing certain codes.

So we can:

– prove authentication by tracing NFT to the original creator

– buy according to the value

– have access to its digital & physical benefits

9. NFT Marketplaces

Several international NFT marketplaces

– Rarible –

@rarible

– OpenSea –

@opensea

– SuperRare –

@SuperRare

Some local NFT marketplaces:

– TokoMall –

@TokoMall

– Paras.(id) –

@ParasHQ

– Enevti –

@enevtihq

10. Ghozali Case

how come the price of Ghozali’s selfies can be exorbitant?

So, he launched his first NFT on a whim

@opensea

with the name Ghozali Everyday.

Contains selfies every day for the last 5 years, and it’s a LAKU.

How come? Yes, maybe his work has value for buyers

11. Conclusion

First, congrats for

@Ghozali_Ghozalu

good luck sustenance.

Cases like Ghozali have a 1 : 100000 chance

You could say he was lucky, preparation (Consistency for 5 years) which was initially just a fad, met with opportunity (Good Momentum & NFT Community).

Kudos to Mas Arnold Poernomo too

who created a chat room this afternoon and invited Ghozali to talk about his NFT project.

The NFT community is very good because they support each other.

Overall, nothing is impossible in this world as long as we want to try.

12. Another NFT example

More and more NFT products are also increasingly developing into various fields:

– music and games

– events or ticketing

– fashion

– social media and influence

– NFT Club and NFT Community

– etc.

Then how to dive into the world of NFT?

Suggestion :

We all know that NFT is still very early, especially in Indonesia, meaning it is a high-risk-high-return investment.

So, my advice for beginners, it’s better to learn before jumping in, understand everything until you really understand, after that just work on it.

Disclaimer :

What I write in this thread is purely my personal opinion and limited to what I know about NFT.

So if there are friends who understand more, have other opinions & want to add what you know. Please can reply in reply.

Summary :

0. What is NFT

1. Definition

2. Definition of NFT

3. Why do we need NFT

4. The problem

5. Value

6. Framing the Problem

7. Understanding the Problem

8. Solution

9. NFT Marketplace

10. Ghozali Case

11. Conclusion

12. Another NFT example

last. Suggestions & Disclaimer

Question session:

1. Why do people buy NFT at an expensive price? The answer can be for social needs, he is considered, and also investment goods because more and more people want to buy but only 1 item, so the price is getting more expensive.

After all, other people would care if A had the ownership rights to the NFT?

Now like this, does everyone care about the owner of the original Monalisa painting? I don’t.

However, in the art lover circles they care about who owns the original painting.

It’s the same with NFT. The NFT activists will also care about the owner of the expensive NFT. So, the owner will still have his own “social level” in the eyes of the NFT activists.

And are there many activists? Many.

NFT is a complete medium for selling unique ownership.

The point here is the media (container), where Ghozali’s NFT is one of its forms

So, not to say this is a scam, it’s a pity

2. It’s quite understandable, those who still don’t understand why the value can be that expensive, and apart from being a collection, what can we do with the nft we have to make more money apart from resale

In economics, there is such a thing as the law of supply and demand

In the previous thread, the example of a Rolex watch is exemplified. Those who are interested in a lot of watches (demand) but only a few hours in stock (offers). If it’s like that, the price will automatically go up. That’s what the law says

3. Still haven’t found the VALUE, where is the picture? Maybe I’m still ambiguous about this nft because digital products can’t be replaced by real products such as gold, land, property?

So nft is just the medium. In fact, the existence of NFT is very helpful for artists. Those who design their own work without being copied and paste will be rewarded there (for example: home design, fashion, digital art, or ingame avatars). But for this case, it’s just hype.

Other Thoughts:

I think the value of nft will increase with the development of the metaverse, because in the metaverse nft will be very valuable, limited, just imagine that your friends play at your metaverse house and see your nft collection, or you make an exhibition of your nft collection in the metaverse, maybe now there may not be any value

But we also don’t know what the future will be like, people who buy nft up to tens of thousands of dollars are clearly crazy in my opinion for now with the uncertainty of nft, but maybe in the future these people can be said to be the smartest people I’ve ever known

What is NFT? Why People Want to Buy Expensive NFT?

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