NFT: The Word of the Year That Changed Everything

The Rise of NFTs

In 2021, Collins Dictionary made a splash by announcing that “NFT”—or nonfungible token for those who prefer not to sound like they’re speaking in code—was its word of the year. Who would’ve thought that a quirky digital asset would take the crown over buzzwords like “crypto” and “metaverse”? But here we are, living in the age where owning a digital cat could potentially be more valuable than a real one!

What Exactly is an NFT?

If you’re scratching your head, wondering what an NFT really is, you’re not alone. Collins Dictionary defines it as “a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible.” Think of it as your digital receipt for that priceless tweet or your favorite cat meme, proving that you really own what you say you own—at least in the digital realm!

Art Meets Technology

NFTs have effectively revolutionized the way we view and value art. Artists can sell their work directly to buyers without needing gallerists or auction houses to split the profits. The highlight? Beeple, an infamous artist in the NFT space, sold his piece “Everydays: The First 5000 Days” for a jaw-dropping $69 million! Move over traditional painters; the digital artists are here to stay!

The Financial Perspective

In case you thought NFTs were just digital doodles, think again. The total sales of collectible and art NFTs hit a staggering $7.4 billion by the end of 2021. That’s not pocket change, my friends. It’s more than some movie budgets! In comparison, traditional art sales clocked in at a mere $55.5 million. Talk about a paradigm shift!

WOTY vs. Vax

It’s worth noting that around the same time, the Oxford Dictionary also awarded its word of the year to “vax,” a term that became crucial due to the global pandemic and vaccination discussions. This shows we’re living in truly historic times, merging health terminology with the world of nonphysical assets.

Final Thoughts on the Digital Frontier

The inclusion of “NFT” as the Collins Dictionary’s word of the year underscores how our digital existence continues to evolve every minute. We’re not just trading stocks and bonds anymore; we’re trading what could only be deemed as pixels! So buckle up; if you thought you were going to simply live through the digital revolution, you may want to take a seat, because it’s going to be a wild ride!