@LucoaMilkers @kev
Value of the NFT is supposed to come from its utility, scarcity and past owners.
Economics 101
Value comes either from utility or value as precieved by others. So, let's start from the simple part. Past owners.
If you saw a guitar, that at one point belonged to Elvis, it will gain value in your mind. fair enough. But would you honestly buy an NFT only couse at one point it belonged to someone? I would not, but there is "some" value there.
Scarcity... of what? Scarcity is made by more people wanting to buy shit then there are people willing to sell shit. That means, that if there comea a crysis or another shiny toy, the moment people loose interest, you IMMEDIATELLY loose the ability to sell your NFTs.
And utility... I might be dumb, but outside some serious dependency on legal framework, I see no utility in a single string being placed on some random site. As far as I'm consterned, it has same value as your name on a speedrunning board. It's neat I guess, but there is no reason to buy it, unless you realy care for tbe sake of seing your name.
> some serious dependency on legal framework
I think so as well.
Tradeables in mmos come to mind, which have a "de facto legal" quality.
Which means someone from the outside voluntarily binds utility he controls to this ledger.
@mute_city @kev @LucoaMilkers
The thing is, you don't need an NFT to trade in an MMO, since all of it is centralized. That is why I used patents as an example. You can sell a patent, and it is not tied to any particular physical or digital item. BUT when you see someone using it, you can point to NFT and let the legal framework do the rest.
@LukeAlmighty @kev Yeah there’s no utility and no reason to touch NFTs the way things are now. Utility will only come if games and social media platforms decide to integrate them. Now imagine this: Twitter decides to fully embrace the blockchain, users now can display their verified NFTs in tweets/galleries and trade them on the marketplace, e-celebs have more ways to engage their communities (NFTs that send percentage of each re-sale to charity. Participation trophies. Consumable NFTs that entitle the holder to a shoutout.) And lastly a gamified way to raise funds for projects, animation studios could sell memorable shots from their works as verified NFTs which doubles as an advertisement if the NFT skyrockets in value and people talk about it
@LucoaMilkers @kev
It all sounds nice, but even if celebrities were selling nudes with an NFT lock of some kind, It will always become a .jpg or .avi the moment aomeone has an ability to display it once.
There are many from air ecomomies, don't get me wrong, but all I am saying is, that these economies do not survive a slight shaking, since they are not based in utility, but only on a desire difference between owners.
@LukeAlmighty @kev People will buy game items, they won’t buy screenshots of the game items. Both are jpgs but one is verified and utilized the other is not. If someone buys the screenshot they are just stupid
@LucoaMilkers @kev
So, let me ask again.
Why do you need an NFT for an in-game item, that can be saved in a company owned database instead?
@LukeAlmighty @kev That was just an example against the “it’s just a jpg” schtick. Game devs who profit from transactions won’t do it, but a re-sale cut of in-game items could work as an alternative revenue stream for crypto-minded developers
@LukeAlmighty @kev I understand that NFTs are meant to be a tool for true ownership of digital items, and a way to handle and trade these items outside the frames of centralized apps/platforms. Value of the NFT is supposed to come from its utility, scarcity and past owners while the value of the NFT market as a whole should follow the integration of the NFT blockchain into games and apps like Twitter.