What are Non-fungible tokens or NFTs?

Probably already heard bits and pieces about Non Fungible Tokens or NFTs. Even though the history of NFTs can be arguably dated back to 2014, this piece of crypto started to gain much popularity in recent years. In this article, I hope to make it simple for you to understand Non-fungible tokens, a.k.a, NFT.The word fungible means — easy to exchange/trade for something else of the same type and value. For example, money is a fungible asset. If you lend a $10000 bill to your friend, it doesn’t matter if your friend repays you with two $5000 bills or ten $1000 bills. As long as the total value of the repaid bills is $10000, you have received the value you lend out.In another scenario, let’s imagine that you have lent your car to your friend. In this case, you expect your friend to return your car. It will not be acceptable for you if your friend wants to return a different car of the same make and model. That means a car is a non-fungible asset.Non-fungible assets are unique. For example, a baseball bat usually costs around $200. But, the bat Babe Ruth used to hit his 500th career home run was sold for more than 1 Million USD. There could be thousands of bats that were manufactured in the same batch as this bat, yet, the value of the bat used by babe Ruth is over 1 Million. Because it has a qualitative value attached to it. non-fungible assets hard to trade or exchange with assets of the same type due to their attached qualitative factors like emotions, uniqueness, etc.Is bitcoin an NFT?No, Bitcoin and other cryptocurrencies like Ethereum, ripple, etc are not non-fungible tokens. Because, for example, if you and your friend trade 1 bitcoin with each other,…