The essence of NFT’s is that they’re non-fungible blockchain assets. I know it’s hard to not think of mushrooms or mouldy feet when the word ‘fungible’ pops up, but trust me, it’s got nothing to do with that.

When you exchange one Bitcoin for another, you’re essentially retaining the same asset just as you would if you exchanged one dollar bill for another dollar bill. Since these assets are fungible, they can be traded one to one without losing any value or changing the nature of the asset. NFTs are a different story. They are unique works that are codified on a blockchain and, therefore, cannot be modified or replicated. Since no two NFTs are the same, they cannot be traded on a one-to-one basis like fungible tokens or bank notes.