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What are non-fungible tokens, or NFTs?

Published: Mar. 16, 2021 at 8:38 AM EDT
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LEXINGTON, Ky. (WKYT) - We keep hearing about NFTs, which is short for non-fungible tokens. But it can be difficult to fully understand what they are. Are they something we can expect to stick around going forward? Independent wealth management advisor Josh Smith of Strategic Wealth Designers joined us on the newscast to discuss.

“Non-fungible means it cannot be replaced with something else,” Smith says. “They are parts of digital content that are linked to the blockchain, which is a ledger for cryptocurrencies. We have seen NFTs been used to buy and sell virtual trading cards, tweets, and most popular, digital artwork.”

NFTs have existed for more than two decades but have become popular as of late. The popularity of cryptocurrency lends to NFTs becoming more common. Additionally, there have been transactions of NFTs of seven and eight figures in recent weeks.

“NFTs are very relevant right now,” Smith says. “If we see cryptocurrency continue to evolve and grow, so will NFTs. In order for them to become a staple, they have to become more user friendly because right now the process of using them is very complicated.”

NFTs allow digital creators to sell their content in a way like never before. Their complexity and general “newness” have led to increasing popularity recently. To see additional stories surrounding business and economic news for the Lexington area, visit https://www.WKYT.com/MoneyMatters/ and if you have a question for Josh send an email to info@swdgroup.com.

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