To understand cryptocurrencies and digital art you need to know this fundamental distinction
Fungible Tokens Currency
A fungible token is a unit that can be exchanged for another identical unit
Example One Bitcoin is equal to another Bitcoin One dollar is equal to another dollar
Function They are ideal for money investment and transactions because their value is uniform
Uses $BTC $ETH $USDT are all fungible tokens
NFTs Non-Fungible Tokens Unique Pieces
An NFT is a unique and irreplaceable unit
Example A digital art NFT A concert ticket with assigned seating No two are alike
Function They are ideal for demonstrating ownership of unique assets collectible art and digital properties
Uses They represent exclusive ownership and collectible value
In summary Fungibility allows for the exchange of value Non-fungibility allows for proof of ownership
