Billionaire Mark Cuban is speaking out on the new $1.9 trillion American Rescue Plan (ARP) Act which just passed into law in the United States. He is also selling one of his motivational quotes as a non fungible token (NFT) for $1,700 worth of cryptocurrency. So what is NFT and what is a motivational quote and why should anyone buy one anyway?
Well here’s the deal. A Non-Fungible Token (NFT) is a kind of cryptocurrency like Bitcoin. Only in this case it is a specific digital file whose unique identity and ownership are verified on a blockchain. NFTs can be bought with cryptocurrency and resold. NFTs have different values and so they are not interchangeable.
Confused? The key word here is fungible. This means something that has a set value. So Bitcoin has a set value for each coin at whatever the going rate is. So all Bitcoins are equal in value at all times. Nut each NFT is unique. And the NFT itself is not used as a currency. It is more like buying a Picasso and hoping that the price goes up.
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So what is so special about the NFT that Mark Cuban is selling? Well his is of his own quote: “No one every changed the world by doing what everyone else was doing.” Apparently buying this is like buying an autographed picture of a famous actor like Brad Pitt or an autographed Tom Seaver rookie baseball card.
So will this be worth the investment? Will the quote go up in value? Well like with cryptocurrencies, works of art, or any commodity only time will tell.
As for those stimulus checks which American will soon be getting, Mark Cuban has some advice on how to spend the money. Under the plan, every American with an adjusted gross income below $75,000 is eligible for $1,400, and married couples filing jointly below $150,000 will get $2,800. And Cuban told CNBC that people should use the money to pay off their debts, especially credit card debt. If there is any money left over after that then he says to put it in the bank.
This would seem like a no brainer, especially if you have been out of work due to the Coronavirus crisis. Then you probably saw an increase in your credit card debt. Why use the money on anything frivolous. Credit card interest rates are high. If you keep on owing then you just keep on throwing money out the window covering the interest payments alone. So pay off as much of what you owe as possible.