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Defining a New Craze<\/p>\n
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Would you pay $10 for a virtual kitty?\u00a0 Maybe, right?\u00a0 If you could pay ten dollars and gain access to an online game where participants buy, breed and trade virtual cats, it might be a fun diversion like a game of Candy Crush.\u00a0 Now, would you pay $390,000 for a virtual kitty?<\/p>\n
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CryptoKitties is an Ethereum blockchain-based game.\u00a0 Kitties, which are literally graphic images of cartoonish cats, are bred with other virtual cats in the game.\u00a0 Each kitty is an NFT with unique DNA.\u00a0 No two are alike.\u00a0 When the game was released in December 2017 by Canadian company Axiom Zen, more than 60,000 people signed up to play, purchasing $5 million in CryptoKitties.<\/a>\u00a0 Since then, there have been some high-priced virtual cats purchased using Ether (ETH), the digital currency exchanged on the Ethereum blockchain.\u00a0 The approximate US dollar purchase prices for these NFTs were $107,000 for CryptoKitty #4, about $164,000 for Founder Cat #18, and yes, 600 ETH or about $390,000 for CryptoKitty #896775, otherwise known as Dragon.<\/p>\n <\/p>\n <\/p>\n To understand non-fungible tokens (NFTs), it helps to explain a few terms that are frequently used with them: fungible, non-fungible and blockchain.<\/p>\n <\/p>\n If something were fungible<\/em><\/strong> it could be exchanged for equal value without losing value.\u00a0 For instance, if you gave someone a $10 bill, and they gave you a five-dollar bill and five singles in return, or two fives, or a different ten-dollar bill, you are not holding the same original bill, but the value you have has not changed either.\u00a0 These are fungible.\u00a0<\/p>\n <\/p>\n Non-fungible <\/em><\/strong>is not exchangeable.\u00a0 You cannot trade an original Picasso painting for a replica, even if it looks exactly the same.\u00a0 The original Picasso holds the value.\u00a0 The replica does not.\u00a0 Every non-fungible asset is unique and irreplaceable. \u00a0\u00a0<\/p>\n <\/p>\n A blockchain<\/em><\/strong> is essentially a digital ledger of transactions.\u00a0 When cryptocurrency such as Bitcoin or Ether is used, and the transaction is recorded on the blockchain, it cannot be altered or duplicated.\u00a0 Creators such as artists and musicians can access sites like Rarible and OpenSea where they can turn their original work into an NFT by adding it to the blockchain. <\/em>This technology (blockchain) allows verification of ownership, of something that is digital.<\/p>\n <\/p>\n <\/p>\n NFTs are being built on Ethereum\u2019s blockchain by a wide variety of creators.\u00a0 What might have been considered fringe a few years ago has begun attracting interest from some unexpected places.\u00a0<\/p>\n <\/p>\n <\/p>\n <\/p>\n It\u2019s hard to comprehend the big money transactions that are taking place over digital art or things like video clips, especially when they are still easily accessible for free viewing with a simple Google search.\u00a0 The purchaser can claim bragging rights to owning the NFT, but, as in the case of the NBA clips, they do not own the clip. The purchasers are investing serious money, presumably with the hopes that what they have acquired will increase in value.\u00a0<\/p>\n <\/p>\n <\/p>\n Video games have come a long, long way from the early days of Donkey Kong and Sonic the Hedgehog.\u00a0 As people spend more time at home and online, games have grown in popularity and appeal to a wide age range.\u00a0 As people are willing to spend money on hobbies from fishing to quilting to playing a team sport, gamers spend money, too.\u00a0 When viewing NFTs through the lens of specialty items built up in a game, as pointed out by Esports.net, \u201cThe prospect of actually accumulating game assets with real-world value can only be enticing for gamers. Imagine if your Fortnite skin and equipment collection you have just spent two years building is actually worth a few thousand bucks.\u201d\u00a0 Someone\u2019s hobby might now make them a little extra cash.<\/p>\n <\/p>\n Or say a favorite band offers an NFT.\u00a0 In March 2021, the American rock band Kings of Leon released an album package containing a vinyl record and digital download as an NFT priced at $50.\u00a0 As NFTs offer value by being part of a limited quantity, sales were open for a two-week period and then closed, with no further copies being made.\u00a0 A fan might appreciate the opportunity to buy a unique collectible for fifty bucks.\u00a0<\/p>\n <\/p>\n <\/p>\n A valuable aspect of NFTs is the smart contract that is attached.\u00a0 This allows a creator to continue to benefit financially anytime their original product transfers to a new owner.\u00a0 For instance, an artist can build in a 4% fee (or whatever rate deemed appropriate by the artist) that will be paid to them anytime their work is resold.\u00a0 Consider an artist who has a respectable number of fans and then suddenly has a breakthrough piece of work that creates a demand for their other pieces.\u00a0 If an original collector is able to sell an earlier work for a significant profit, the artist will benefit from that sale as well. \u00a0Whether you are applying this concept to digital art, a video clip, or even concert tickets generated as NFTs, it helps the creator to also get paid whenever anyone benefits from the sale of their work. There is also the concept that token-holders could be granted a higher level of access to artists or receive special opportunities, similar to a membership club.\u00a0 \u00a0\u00a0<\/p>\n <\/p>\n <\/p>\n While NFTs have been around for several years, and are suddenly gaining in popularity, the fact is there is still a great deal to learn about how they will be effectively used, and which applications might not work out as well.\u00a0 Will expensive digital art appreciate in value? Will investments made in virtual kitties pay off?\u00a0 \u00a0It\u2019s clear that our world is changing, and the future will involve digital technologies, cryptocurrencies and blockchains, however, for now we prefer to tread cautiously as the risk\/return payoff is very uncertain.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.26″ custom_padding=”4px||4px|||” saved_tabs=”all”][et_pb_row column_structure=”1_4,1_2,1_4″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”3.26″ background_color=”rgba(117,117,117,0.3)”][et_pb_column type=”1_4″ _builder_version=”3.26″][et_pb_image src=”https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/12\/bottombrand.png” align=”center” _builder_version=”3.26″ transform_scale=”164%|164%” width=”67%” width_tablet=”35%” width_phone=”” width_last_edited=”on|tablet” module_alignment=”center” custom_margin=”|||0px|false|false” custom_margin_tablet=”|||32px|false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”9px|73px|||false|false” mix_blend_mode=”hard-light” module_alignment_tablet=”center” module_alignment_phone=”” module_alignment_last_edited=”on|phone”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”3.26″][et_pb_text _builder_version=”3.27.4″ text_text_color=”#000000″ custom_margin=”|||-102px|false|false” custom_padding=”|27px||0px||”]<\/p>\n Our mission is to help our clients protect, preserve, and enhance their wealth. We achieve this by combining our investment management expertise with our financial planning services. Our co-management approach offers customization of portfolios and client involvement. As a fee only advisor, we do not sell any products and therefore, provide unbiased advice. Our clients always come first.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”3.26″][et_pb_text _builder_version=”3.27.4″ text_text_color=”#000000″]<\/p>\nWhat are NFTs?<\/strong><\/h2>\n
How are NFTs currently being used?<\/strong><\/h2>\n
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The big question is \u2013 Why?<\/strong><\/h2>\n
While the big transactions get headlines, on a smaller scale NFTs appeal to gamers and collectors.<\/strong><\/h2>\n
How might they be used in the future?<\/strong><\/h2>\n
Proceed with Caution<\/strong><\/h2>\n
About Us<\/strong><\/h3>\n
Reach Us<\/strong><\/h3>\n