NFT Stuff – Bloomberg

Or take non-fungible tokens. One common approach with NFTs is that there is some sort of physical or electronic object, and you sell an NFT “of” it. The relationship between the NFT and the object is that the NFT is a label referring to the object. That’s it. Often you also destroy the physical object: You make or buy a painting, burn it to ashes, and sell an NFT “of” it; now the NFT is the only … version? … of the artwork. The “object-fire-token-money cycle,” I call it. But this is not essential. We talked once about a Bohemian prince who wanted money to restore his ancestral castle, so he sold NFTs “of” his art collection. If you bought an NFT of one of his artworks, (1) you gave him money, (2) he kept the money and (3) he also kept the artwork. But you got the NFT! Was he kidding? Wrong question!

Source: NFT Stuff – Bloomberg