NFT's are all the rage. In the crypto world and the Metaverse, you can not avoid mentions of meta land, meta verse, Web3.0 and mentions of the new, new ,and new stuff.
I know we need words to describe the actions and thoughts of our existence, and the ideas we want to share; We often use pictures to express these thoughts. My question, is how does a digital file that takes seconds to create ( on an app that throws out millions of variations of pixels); how does this computer creation gain or hold value?
We assign value via our system of accounting called money. An ago old concept of value and trading.
This money may be fiat, gold, silver, commodities, or digital files. There are many forms of value. Crypto is just one of them. I am not convinced of the stability nor longevity of this new craze we call NFT's. These digital files seem to come from nothing and skyrocket in value minutes after an app has created the file. Is there real value here?
Can someone explain to me where is the value? As this market is saturated with jillions and trillions of new digital files that are being created as we speak, how can this new art form hold it's value.
It almost seems like the US Dollar. If I print 10 trillion dollars, the value of my exisiting dollar is devalued. I see it like the Kings new clothes. Only worse. When the 1st winter wind blows, someone will realize " I'm NAKED"! And like a thrown baseball;
I saw this baseball. It kept getting bigger and bigger until it finally hit me.
The cost of NFT,s changing hands (currently equivalent to Billions of dollars) is like a gold rush. I have no doubt that the early adopters will profit handsomely as they buy and sell the newest hot token. But, when do you bail on this new craze and convert your digital currency to the old standby of fiat or commodities, or BTC and altcoins?
I welcome your comments and opposing views. If your experience and historical views can justify this new experience , please help us mere mortals to understand the long term value of digital files and NFT's. I would also hold this new craze up to the quantum computing that is evolving every minute. New quantum computors can duplicate and surpass all the existing NFT's in a matter of minutes with the right programing. Will this flood of files lower the value and wipe out the scarcity of our newfound art? Will community enthusiasm keep the value at All Time highs?
The blockchain revolution is totally awesome for unlocking value and making the act of commerce more economical, with less friction in transactions, and better security. We have not begun to see the great things that will come from Blockchain Technology . Still, I cannot get with the plan on these NFT's.
There are many people much smarter than I that disagree with these thoughts, but I'm writing this to learn, as much as I write to warn. Don't put all your eggs in one basket. As least don't count your chickens until they hatch. " It's hard to cook if all you have left are feathers."
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