Talking about trends: today’s guest is NFT

NFT is a non-fungible token. A unique asset - only one of a kind exists on the blockchain, it’s authentic. Think CryptoKitty.

So people started jerking off to NFTs a few months ago. Which always seemed confusing to me. If I just make something scarce, but it has no utility - it will still not appreciate in value. If I make IvanCoin, and burn 90% of the supply - it won’t go x10, because there is still no utility for it. Not even an imaginary perceived value (emotional value people attribute to coins quite often called HODL). For an NFT to really shine, it first needs to represent or acquire that ‘collectible’ value. Again, the blockchain does not solve cancer. There is no default value in NFT.

Think of MTG. One can think that only the physical cards have collectible value since you can touch and feel them. But no, MTGO (online cards) have that too. So do PokemonGo avatars. But that was about transposing the existing user base into the digital world - and making the value travel there. There were already people collecting those things, and then they started attributing value to it. That happens quite rarely, it’s not easy to replicate such a phenomenon. It was not just a no-use-case NFT created from nothing.

So here you go, two nice tech/conceptual rants about NFTs.

ONE & TWO