NFT’s, or non-fungible tokens are data assets digital in nature which serve as more technical safe zones for digital assets including logos, images, doodles, even video and audio files online can be protected. There can be various types of digital tokens.
WHERE IS THE VALUE?
In an age of interruption marketing, with everything from clothing items and houses selling for anything from 10-100 times their manufacturing price, people have determined that value exists where they say it does. End of the question.
It doesn’t matter that you cannot touch this asset, hold it in your hand, warm your house, feed your family, or even use it really… consumers (i.e. pretty much everyone) will buy something for the sole fact that they hear others want it. Whether or not it has any use to them.
This is called manufacturing consent.
It is the art of making you pay for something you 10 minutes ago didn’t even know existed, let alone wanted!
No one else could want this NFT in particular but if you make a blog post or pay some reporters to build up the craze about it you will sell it for 10X or 1000X it’s original worth, which is still of course $0…
The fact that whoever created this system designed it so that there can only be one digital asset of each kind makes them worth a lot more.
The reason the scarcity seems fake to advertisers and marketers is because anyone can recreate a digital asset. And have it serve the same purpose as the one that’s NFT protected.
I’m sure you’ve all seen those internet marketers selling you courses with limited spots even though it’s an online event. (I didn’t know zoom meetings had a covid capacity…)
So why are people paying millions for these things?!
The answer is they’re not.
Only people with millions to throw around are messing with NFT’s at this time in 2021.
And even then they are doing it for fun not for any serious work projects.
Its biggest appeal is its artificial scarcity in people seeing you own it. In other words, it’s basically everything that’s wrong with capitalism. And I don’t say that lightly, as a history and classics teacher whose seen the direct alternatives. (Communism)
The Nyan Cat NFT (one of the first on the market) sold for 300ETH or 460k (roughly 900k USD in today’s prices.)
Similar to how cryptocurrencies were made as an alternative payment system safe from central bank manipulation, NFT’s were made as a way to protect artist’s digital works.
But that’s not what people are using it for.
HOW IT RESEMBLES PYRAMID SCHEMES
Let’s say you own an NFT of this video.. Instead of owning the video itself, you own a certificate that says you own the video. And that gets recorded on a big public list.
Now you might ask, who cares? And you would be correct. That certificate only has value if you can convince thousands or millions of other people that it does. It’s no different than when companies used to let you “name” stars after people, and they’d send you a piece of paper with the star’s coordinates and the person’s name. Except with NFT’s, you’re trying to turn around and sell that piece of paper to someone else.
Just like getting permission to sell the stars is a little far-fetched and out-there no matter who your lawyer is, NFT’s are too regulated by the people who said it was illegal to ride share without a cab license.. and then started Uber.
So invest at your own risk.
Or should I say, spend at your own risk.
Individuals who support free banking believe that fiat money should not exist, but that currencies should be freely traded in the economy. And its value determined by indexing those currencies to precious commodities.
Just so, individuals who support free markets, ethical advertising and business practices are loathe to participate in an economy which incentivizes the manipulation of prices and instability of interest rates.
COPYRIGHTS VS. NFT’s
To makes matters worse, owning an NFT does not mean you own the copyright to the digital asset, but rather a signed receipt of sorts from the original owner. This means the person who made the Nyan Cat NFT still owns the copyright, but sold the NFT (which has no usage as of October 2021) for almost half a million dollars. If that makes sense?
As if artists didn’t already cry themselves to sleep most nights, (joking), now they can have their work ripped off by someone making an NFT of it and selling it. They’d then have to hire a copyright lawyer.
Disclaimer: Some sites say the original creator of Nyan Cat made all the money from it, stating that the money went into an unknown crypto portfolio, however there’s little to no evidence for this, and the way the system treats artists historically would have me believe they are not compensated at all. And all the money instead goes to the hosts of these sites and platforms.
WHAT IS IT GOOD FOR?
People have always attached value to fine art and other things of such scarcity, but digital assets have never had this same value, since they can too easily be copied, reproduced, or stolen.
Blockchain technology is attempting to change that.
If someone wants to copy my blog and post it on their website… My only defense now would be to hire a lawyer and sue them which would cost me a lot of money.
Unlike with copyrights of which there’s no official documents, with NFT’s you can simply look at the Blockchain Ledger to see who holds ownership (Don’t ask me how…)
Just like how Bitcoin (the world’s first decentralized currency) sees its efficacy favouring currency trading and exchanges rather than it’s original purpose; to replace cash. So too do NFT’s act more like an amalgam of gambling and sports card trading than they do digital asset protection.
Thanks for reading!
THE BLOCK BARD
Founder | Head of Copy
~ Hi there!
If you see anything wrong with this post, be it typos, to offensive material, you can DM us at the email below and we’ll try to make it right 🙂
We love finding new, excellent sales professionals to feature in our blog. If you hold a sales, marketing, revenue-oriented title, or even business & growth, you are welcome to submit a pitch — or get the conversation going on topic ideas.
But before you submit, please make sure you read our B&G Content Guidelines We know they look long, but they actually take only a few minutes to read. If you’d like us to spend our time working with you, please invest a little of yours in reading those guidelines.
Once you’ve read the guidelines, send your pitch to firstname.lastname@example.org.
We often find great ideas in unexpected places. The next article published on THE BLOCK BARD ‘Business & Growth’ could be yours!
We Love Your Support!
If you enjoyed this post, you can support us by following our social media & sharing below!
The Ads That Pay You Back! ©