The Latest Investment Craze: Non-Fungible Tokens

Over the past month nonfungible tokens, or NFTs, have been all over the news. Saturday Night Live even got involved.

 What are they?

NFTs are cryptographic assets that are on the blockchain with unique identification codes and metadata that distinguish them from each other. Since they are unique, they cannot be traded or exchanged at equivalency, which differs from cryptocurrencies such as Bitcoin, which are identical to each other and therefore can be used in transactions (i.e. you can now buy a Tesla with Bitcoin).

 Why buy an NFT?

People are spending millions of dollars on NFT collectibles including artwork, digital images, sports cards, GIFs, music, video games, and other forms of creative art. By purchasing an NFT, you have a secure certificate of ownership over a digital object. As a collector, you are hoping that the value of the purchased item increases in value. For those that still remember the non-blockchain days, think of NFTs as a modern form of purchasing and collecting baseball cards. You buy them for your personal enjoyment and they may/may not appreciate in value.

 How to buy:

NFT’s can be bought on a variety of platforms, such as Nifty Gateway, Rarible, Open Sea, and The Sandbox. Each platform has an online gallery where you can browse, purchase, or bid on items in a similar fashion as an auction house. A purchase or winning bid is paid for with cryptocurrency. A digital wallet is necessary to store your purchase.

 Final thoughts:

NFT’s are relatively new. The current market is largely speculative and as with all markets, prices will fluctuate. In the modern and digital world we live in, NFTs will be another option for artists, creatives, and others to monetize their work, for collectors to purchase direct with fewer intermediaries, and for brands to establish their presence in the growing metaverse. Some further reading:

Minimalism: Financially prudent, environmentally responsible… the shortest route to happiness?

What could eschewing the non-essential mean for your life? A quicker path to financial freedom? A reduced environmental footprint? More joy while living and less regrets on your deathbed? Yes, yes, and (hopefully) yes.

In the most basic sense, minimalism is about intentionality: promoting the things that matter most while discarding the distractions. It’s a way to help us identify and actually prioritize what we deem to be of utmost importance.

Finances: A minimalist lifestyle is less expensive and creates room to either earn less or increase savings – both paths that speed up the journey to financial independence. A less expensive lifestyle means it’s also easier to create, and alter, an intentional/purposeful budget and to payoff bad debts (i.e. credit card debt).

Environment: Financial minimalism and environmental stewardship are often (but not always) intertwined. When you need less, you buy less. By buying less, you consume less.

A minimalist lifestyle should naturally lessen your environmental footprint, however completely abstaining from new purchases is not realistic for most. So, when buying, consider prioritizing quality over quantity and purchases that are energy efficient. While not always the case, these buying strategies can also be f inancially prudent ones over the long haul.

Happiness: You can’t buy your way to happiness. Minimalism is simply a tool that can assist you in finding freedom. Freedom from avoidable stresses, burdens, and fears. Freedom to prioritize your health and relationships. Freedom to reclaim your time, or to live in the moment. Freedom to create more, to grow as an individual. Real freedom.

Final Thoughts:

Minimalism is not about searching for happiness through things, but through life itself. Thus, it’s up to you to determine what is necessary and what is superfluous in your life.

Additional Reading:

5 Things People Regret Most on their Deathbed