Non-Fungible Tokens (NFT) are a quickly growing way to trade and collect unique digital assets, and many modern industries are getting involved with their sales, including the coffee industry. If you are a coffee fanatic like we are and are thinking about getting into NFTs but would like to know more about how they work and how coffee is entering the market, keep reading while we answer all of your questions so you can make an informed decision about these new digital assets.
What is an NFT?
Before we get to the coffee, let’s quickly discuss NFTs, since they are still pretty new to most people. As we mentioned earlier, NFT stands for non-fungible tokens. It’s a one-of-a-kind, collectible, digital asset related to cryptocurrencies like Bitcoin or Ethereum.
An NFT is a digital item like a digital photograph, video, email, tweet, screenshot, etc. It has a complex digital signature that proves that it’s one of a kind, unlike most digital items you can copy into infinity. Limiting supply creates value, and many people are willing to pay a large fee for a digital item that once belonged to a popular public figure or one that has a link to an important event. Higher demand for an item will increase the value of the NFT.
What Does Fungible Mean?
Fungible essentially means that one item is equal to another and is interchangeable. For instance, a dollar bill is fungible because trading it for another dollar bill results in no value change. The $5, $10, $20, $50, $100, and other denominations are fungible with other bills of the same denomination, and the same is true for coins. Cryptocurrency like bitcoin is also fungible, and you can trade one bitcoin for another without any change in value.
Since NFTs are unique and represent different items, like a video or a text message, they cannot be exchanged for each other and are non-fungible.
How is Coffee Entering into NFTs?
Coffee Bros have begun entering the NFT market to help raise funds for the Cup of Excellence and World Coffee Research projects, and a portion of the profits also goes back to the farmers helping to increase their wages.
Cup of Excellence
Cup of Excellence is an organization that holds an annual coffee competition that helps improve transparency in the coffee world. Judges closely scrutinize each brand, and the competition between brands results in better coffee across the board for consumers. It helps educate farmers about their coffee and improves their skills while helping to discover new regional flavors. It also helps bring attention to the environment, helps solve quality control problems, and reduces coffee blending. Winners of the competition get plenty of marketing, a financial reward, and other incentives to continue working hard to improve coffee.
World Coffee Research
The World Coffee Research Organization works with the genetics and science of coffee. They are currently exploring more than 50 varieties of coffee beans and are the first organization to facilitate the worldwide exchange of beans which helps to improve everyone’s cup of coffee. You can become a member of this organization directly through their website, but with Coffee Bros, you help finance this organization while acquiring a one-of-a-kind NFT that can increase in value over time like any other collectible.
The Coffee Bros NFT
Each month Coffee Bros releases a limited set of 50 NFTs consisting of a digital image of one of their top-ranked coffee producers. The digital artwork features the name and face of the farmer, as well as the coffee’s rank, variety, and competition score. Interested people can bid between the first and last day of the month, and the highest bidders will receive the NFT to keep in their digital wallets. Future NFTs will feature coffee farmers from Brazil, Costa Rica, Ecuador, El Salvadore, Guatemala, Honduras, Indonesia, and Peru to help bring awareness to these amazing farmers and increase their income.
Coffee companies like Coffee Bros are entering the 21st Century by using NFTs to create additional wealth, boost research, and spread awareness about their brand and farmers. Buyers get to increase their digital assets and diversify their investments for less risk of losing funds.
We hope you have enjoyed reading over this short guide and found it helpful for answering your questions. If we have convinced you to make a coffee-related investment, please share our look into how coffee NFTs are entering the 21st Century on Facebook and Twitter.
Featured Image Credit: Mike Kenneally, Unsplash