What do you really own with an NFT? - Crypto in Plain English - Episode 106 - by cryptohunt.it

What do you really own with an NFT?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let's look at what exactly you get when you purchase digital artwork on the blockchain.

Because it is strange – paying for something you can just have for free. The New York Times turned existing articles into an NFT. Jack Dorsey sold one of his first tweets. And everyone can simply download the digital artwork behind any NFT. So what exactly is the point of buying one?

Besides bragging rights, the point is legal ownership of an asset you want to use – say as a profile photo, or just because you think it’s a good investment. Purchasing an NFT means that you become the owner of it.

Think of it like owning an expensive painting, like the Mona Lisa. You own the original, but anyone can print a copy of it, and you can give it to a museum to display. NFTs are not that different, only that the internet is the museum.

And you may also get other rights, meaning a say in who can reproduce your painting or make money off it. While that differs from legal system to legal system, generally speaking the owner of an NFT has the right to make those decisions, just as you would be able to forbid people to make money with copies of your Mona Lisa. You can download any cryptopunk, but it is likely illegal to use someone else's as your Twitter profile picture, for example.

Lastly, a few special NFTs give you access to perks. The Bored Ape Yacht Club comes with exclusive access to a members-only community and NFT airdrops.

Still find the concept strange? You are not alone, but at least now you know what exactly people get with NFT ownership.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.