For the longest time, NFTs were all about the hype.
So far, NFTs have only been used as ‘veblen’ goods. Conspicuous consumption for the sake of it.
Like “hey I’m so wealthy I can buy a digital JPEG for a million".
Having said that, we should also remember that buyers often fall under one of two categories.
They're either celebrities or influencers that buy them to show off, or they're early crypto adopters who buy them because they bought Ethereum back when one ETH was maybe 1 dollar or 10 dollars.
So now they’re millionaires.
During the NFT craze of 2021, NFTs were the be-all and end-all. Everybody was buying and selling them. Even I created my own collection and made about $100 from it.
Not life-changing money, but it’s $100 I got for taking pictures. $100 I didn’t have before.
But the craze quickly died because there was nothing behind it. Nothing to sustain it. It became boring.
For a few months, anything with NFTs attached to it was gold. After that, it was the opposite.
If you wanted your written content to flop the best way to do it was to use ‘NFT’ in the headline.
Now we’ve plateaued. Chiefly because it got so bad it couldn’t really get any worse.
But the thing is, an NFT is essentially just an immutable line of code, it can’t be deleted and it can’t altered.
It is registered on a blockchain, a permanent public ledger that anybody can observe but nobody can corrupt.
So far, we’ve attached jpeg images to these NFTs and used them as digital art, but you can attach anything to it.
Let’s say you wanna buy a Rolex and you wanna make sure it’s legit, you can create an NFT and use it to authenticate it.
There are companies that are creating fractional shares of famous songs that you can buy in the form of an NFT. And you can get royalties.
Every time, anybody anywhere, plays that song, you get paid.
And we’re talking about famous artists, too. Justin Bieber has done it.
I've actually minted one such NFT as part of a learn-to-learn challenge on Coinbase, I'll talk about it here.
These are all good use cases, and more to the point they make a lot more sense than an 'overpriced JPEG'.