Introduction to NFTs for Kids and Teens
This video explains the concept of Non Fungible Tokens in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about NFTs, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is an NFT
- Possibility of copying the underlying digital asset
- Price / cost of NFTs
- How are NFTs created
- How are NFTs traded
- Investing in NFTs
What are NFTs?
NFTs (or non-fungible tokens) are unique digital tokens that serve as proof of ownership of an asset, and cannot be replicated.
NFTs use blockchain technology, which acts as a digital record of all transactions related to the NFT on a vast network of computers.
While NFTs can be used to represent physical assets, like property or artwork, the majority of NFTs represent collectible digital assets like digital artwork, music, photos, videos, or even virtual plots of land in video games!
Can’t the underlying digital assets be copied?
Yes, they certainly can be. In fact, a lot of times the artist retains the copyright of the original asset, which allows them to legally reproduce it.
NFTs represent ownership of the “original ” asset, even if copies are made in the future.
How much do NFTs cost?
Each NFT is unique, so they all have different values. Like with any asset, its price is determined by demand and supply.
Since there is only one of each NFT, the scarcity, combined with the trend towards digital collectibles, is resulting in some of them being sold for a lot of money.
For example, an NFT for a picture of a cat was sold by Paris Hilton for around $17,000. The most expensive NFT so far is a piece of digital art sold for over sixty nine million dollars.
How are NFTs created?
If you want to create an NFT, you have to first choose a specific blockchain technology, and upload your content to that blockchain.
Then, you select the NFT marketplace to list your NFT on, since NFTs can only be bought and sold on specialized NFT marketplaces.
You can even add a royalty or commission to your NFT, which would result in a payment to you every time your NFT changes hands.
How are NFTs bought & sold?
You need to keep in mind that many marketplaces charge exorbitant fees for trading NFTs, like currency conversion fee, closing fee, and gas fee, which is the charge for the energy needed to complete the NFT transaction.
Are NFTs a good investment?
One big downside of NFTs is the huge environmental impact they have due to the amount of energy consumed for every single transaction.
But there are many more reasons why NFTs are not a good investment.
Check out “7 Reasons Why You Should Absolutely Avoid Investing in NFTs” for more.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What are NFTs or Non Fungible Tokens
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about Non Fungible Tokens: What is an NFT or Non-Fungible Token, Can the underlying digital assets be copied, How much do NFTs cost, How are NFTs created, How to buy or sell an NFT, Are NFTs a good investment, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/nfts-non-fungible-tokens-for-kids/