What is an NFT and why do people pay so much for digital pictures?

[uptrendfinancialsignal]

I just saw one NFT selling for crazy amount and I laughed. I get the ownership idea but the price still does not make sense to me. Even normal art here don't sell at that high amount of money. I am surprised people are spend thousands of dollars on jpeg. It feels like an hype more than a value. Or maybe I’m the one missing something deep.

 

[Nomad]

Crypto assets are of two types, one fungible and another nonfungible. Fungible assets value increases or decreases according to market performance. Some examples are bitcoin, Ethereum, etc. Non-fungible crypto assets have fixed value, they don't change unless the creator decides to do it. NFTs are non-fungible assets that are usually smart contracts on the blockchain

 

[Maya]

An NFT is a unique digital token that proves ownership of something like art or collectibles on a blockchain. I’ve never really been into it. The technology is interesting, but people often misuse it to sell low quality art.