Those who know of me and have followed me for a while, usually know me for a couple of things. They know me for my sales training platform, Cardone University, or they know me for my multifamily real estate investments that ultimately made me a billionaire. People ask my advice on a lot of types of investments, but I get asked about NFTs more and more lately.
Want to know a billionaire’s opinion on NFTs? We’ll get to that in this article. But first, let’s talk about what NFTs are and some of the pros and cons.
What on Earth is an NFT?
Definitions are super important to me. So the first thing I did when I heard the term NFT was to find out what exactly that meant.
NFT stands for “non-fungible token,” which means that it is a digital representation of something that cannot be replaced. It is one of a kind and cannot be counterfeited. It is because of those two aspects that they are valuable.
A simple way to explain how NFTs are unable to be recreated is that they are housed on servers that run 24 hours a day, seven days a week that watch one another. Changes in ownership in the NFT will be saved in these servers as new data and data cannot be altered once entered. That process is called the “blockchain” and is the thing that makes crypto so unique.
Pros and Cons
NFTs are like any other asset. You have to look at the risks involved. You don’t become a billionaire without knowing how to do due diligence on your investments. Let’s look at the pros and cons now.
As of this moment in time, NFTs can’t be stolen or faked. Definitely a point in the plus column. It’s yours and its value cannot be decreased by a counterfeit market. Terms, royalties and contracts can also be transferred from owner to owner.
There is a downside to these assets. And that is that they aren’t ACTUALLY there. What I mean is they are digital representations of things. I like hard assets such as real estate, so something like crypto and NFTs give me pause.
At the end of the day, what is this billionaire’s opinion of NFTs? I’m for them. Original paintings from our 10X Art Show were sold with accompanying NFTs because I’m so interested in that space. I plan on creating and investing in them in the future as long as the market has an interest in them. I encourage you to research NFTs out and see if they are a good fit for you.