Non fungible tokens, or simply said NFTs, have dragged a lot of hype around them lately and there have been talks about NFTs on this chain for as long as I can remember. In my opinion, at least at this point NFTs are nothing more than a form of crappy art sold for millions, although NFTs go beyond tokenized art, at the same time they're true road openers.
The way I see it, and according to my quite limited understanding, NFTs are the future of tokenization of everything, a concept I have been mentioning on my blog for quite a while. We're gradually migrating towards a digital era and almost all we see in the physical, palpable world, will at some point have its digital value and identity.
One problem that I see for digitization of everything, at least from my rebellious point of view, is digitizing identities, but that's a talk for another post. Lets stick to the topic now and look more into what NFTs are, how valuable have become, why are they so hyped and what could be the future of such a trend.
Non-fungible tokens (NFTs) are crypto assets that are indivisible and unique, creating digital scarcity. They have many use cases, including digital collectibles, artwork and in-game assets. Non-fungible tokens contain identifying information recorded in their smart contracts. It’s this information that makes each NFT different and as such, they cannot be directly replaced by another token. They cannot be swapped like for like, as no two are alike. Non-fungible tokens are not divisible, in the same way as you cannot send someone part of a concert ticket.
OK, now that we took away the burden of understanding what NFTs are, from a blockchain technology perspective and what gives them value, lets look at a few examples of NFTs and why I consider them to be crap at this point in time.
Digital artist Beeple, who's personal website name hints towards the current value of NFTs, has offered for auction his collection of digital art which is called “EVERYDAYS: THE FIRST 5000 DAYS” and is described as an accumulative piece highlighting the artist’s journey creating artwork for the past 13 years. 13 years of work that are seeing currently $2,6 million in biddings, with 12 days left till the auction ends and the above mentioned crypto artist has already pocketed $20 million in such art selling.
Considering the pace at which this tech is evolving, Picasso will roll in his grave when his paintings will reach toilet paper prices. Just kidding...
Why I do consider NFTs crap at this point is the fact that the prices offered for this so called digital art are simply exaggerated, and to be honest, these paintings/digital drawings can't be called art. A Michael Jackson with tits drawing being worth $millions is total crap. Have I wrote crap too many times? That's not art... let it be clear. At least not for me. I've seen art and I can feel art... Maybe some of you have way different opinions in this regard and I respect them, but I stand by mine.
For the Chinese, for example, such digital artwork is becoming a form of art, probably one depicted from an emotionless future driven by the abstract, and proof that saying is the Chinese exhibition set for next month. I've always said that there's a potential buyer for every good and in the case of this so called digital art consumers are on the way.
I do see a grain of value in this concept because it opens up the world of digitizing everything, a world that will fight counterfeits and will give much more exposure to artists, collections, ideas and whatever will be tokenized in such way. Will gradually take some out of the anonymity's veil and at the same time takes monetization to another level. I have already covered the topic of monetizing almost everything in a previous post and am inviting you to read that to, if having a spare minutes this beautiful Saturday.
Long story short, NFTs at this point imo are ___, and the ones paying that much money for such so called works of art are doing that out of pure speculation. At some point these will probably be sold for much more than that, just for wearing the stigma of being the first ones. Otherwise I don't see the point in buying crypto kitties or anything of this sort. They'll gradually become similar to the American baseball cards.
None the less, such assets are pushing towards new potential of digitizing and monetizing real life value. Some future NFTs would probably have no chance of getting recognition in real life, among with their creators, but reaching out through NFTs will pay them the deserved value, and their creators will be paid to.
The 21st century will be a digital one, or it won't be at all. Whether we like it or not, everything seems to be moving to the digital world, smart contracts solving a lot of real life issues in here and decentralized blockchains at some point will probably bring people's back the long time lost trust in each other and first and foremost in our our governance systems. Till that becomes a reality though, welcome to NFTs, crypto kitties and crappy cartoons sold for millions.
Enjoy your Saturday!
Thanks for attention,