If you do not work in (or adjacent to) art and auctioning, you could be forgiven for never having heard of nonfungible tokens (NFTs) … at least until the past few weeks. However, a recent boom in their sale means NFTs have shattered auction records and amassed some major headlines. But what the Fabergé are they? 

First, some definitions: economists should be au fait with the notion of fungibility. Money is fundamentally fungible in that it can be swapped out and chopped up in a bunch of ways while retaining value. Two R10 notes are interchangeable. Two R5 coins are interchangeable for a R10 note. And an ounce of gold in nugget or necklace is still, largely, an ounce of gold...

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