NFTs are all the rage among aficionados of cryptocurrency and collectors alike, not to mention those who like to try their luck on the cutting edge of tech. However, as with all things new, there’s a risk with NFTs, one that can turn the cutting edge into the bleeding edge.
What Are NFTs?
Non-fungible tokens are a type of asset that exists purely in digital form. Like cryptocurrency—to which it’s pretty closely related, something we go into in our full explainer on NFTs—record of ownership is kept in a blockchain and a digital ledger.
Unlike cryptocurrency, though, NFTs are one of a kind: non-fungible means that they’re not interchangeable with each other. This makes each and every NFT unique, in contrast to cryptocurrencies where each unit or coin can be exchanged for another—much the same goes for real-world currencies, too.
Because an NFT is unique, it makes them a poor mode of exchange: the power in currencies lies in the fact that any one can be exchanged for any other one of the same kind. If you have two one-dollar notes in your pocket and…
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