In this week’s edition of The Bull & The Bear, I dive into the world of NFTs (non-fungible tokens) and tell you if they are worth investing in.
Today, you can buy just about anything.
I remember interviewing the owner of a 1965 Corvette Stingray that had been in his family since it rolled off the Chevrolet assembly line.
After hearing the engine purr (which sounded awesome, by the way), staring at its cherry red exterior and listening to the owner walk me through every detail of its beauty, I asked one question:
Would you sell it?
His response resonated with me: Anything is for sale … for a price.
That statement is truer now than it was during that interview 10 years ago.
A lesser-known asset has garnered a lot of market hype lately: non-fungible tokens, or NFTs.
NFTs are unique digital “assets” that use blockchain technology to set one asset apart from any other. Once an NFT is created, it cannot be replicated.
Consequently, each NFT is one-of-a-kind.
You might liken an NFT to an autographed Cal Ripken Jr. rookie card — or a classic Corvette Stingray with a unique paint job.
NFTs: Everything Can Be Sold
In 2006, Twitter Inc. CEO Jack Dorsey created his first tweet on the platform.
Fifteen years later, Dorsey‘s NFT of that tweet sold for $2.9 million to Oracle Corp. CEO Sina Estavi.
He donated the proceeds to charity.
That sale brought the NFT world to light and started a craze where even artists are creating digital NFTs of their art and selling those pieces via blockchain.
Dorsey’s tweet is proof positive that anything can be sold … if there’s a buyer.
I’m going to examine what an NFT is, what makes them so valuable and whether they are worth looking at as potential investments.
Pro tip: Chief investment strategist Adam O’Dell is bullish on biotech. I urge you to check out Adam’s presentation on what he calls “Imperium.” He’s confident this DNA trend has the potential to be bigger than internet stocks in the ’90s. Click here to find out more, including the details on how to access Adam’s top four DNA stocks to buy today.
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.