It's a jpeg (or .png or .gif etc) with a unique code attached to it that cannot be duplicated.
Basically, a bunch of nerds found a way to add scarcity to something that can be duplicated infinitely. Said nerds buy crypto art to store their money in. Much like with fine art auctions, it's used for money laundering.
One of my friends in liberal mountain sold a piece they made in 15 minutes while tripping and it sold for a ridiculous amount because DRUG ART.
So yes, it's that stupid.
So, so stupid.
Yep!