NFT Insanity Part 2
You know you're in the Mega-Bubble year when the forward face of crypto is NFT art, completely devoid of any actual utility or network effect. How fitting that millions of people would be exposed to a scam first so they can get absolutely burned during the inevitable crash.
Don't get me wrong, some very valuable lessons will come out of this craze, even if they are just life-lessons on getting tricked. But beyond that, NFT art certainly has its place in the entertainment and gaming industry.
Imagine a new blockchain video game launches, but there's way too much work to do for such a small core development team. They need help. They need workers. They need NFTs.
Frontend video game graphics are the most work out of all the work to be done. By tokenizing graphics and/or art via NFTs, small development teams will be able to pull resources from the cryptosphere itself, paying users for their work by offering them provable in-game ownership.
We see that it's possible to monetize development in a decentralized way without having to actually pay workers in USD. They'll simply be paid with in-game currency (crypto) or ownership of NFTs that can be sold on the market. This creates a low-friction low-overhead system that develops itself without needing a corporation to throw down millions of dollars in collateral up front.
And what do we have now?
This... garbage.
What's to stop someone from plagiarizing the art? It's not hard to change one pixel of a painting and resell it on the market. Just like in the real art world: it all comes down to the artists themselves. Users are willing to pay millions of dollars from a famous artist, while an unknown artist's work of equal skill would sell for pennies on the dollar.
So it's 'impossible' to plagiarize an artists work when we assume their keys have not been compromised, but what are you really buying?
4af82314b511ec10b15b2cd7088c39e7197ee28ebee5f001a9873fff3fc48e47
Do you want to buy my art?
When you buy art on the blockchain, that's what you're actually buying. A SHA-256 hash of the picture signed by the artist. Pictures are too big and expensive to put on the blockchain. Even Hive wouldn't be able to do it at any kind of meaningful scale.
What is the value of this? Maybe I'm being a bit harsh here due to the fact that I would never buy physical art either. But I just feel like when this bull run is over it will be the NFT people that get wrecked first. Like art itself, NFTs have very thin liquidity due to limited buyers.
But parsing these concepts even further, when you buy NFT art you have to trust the frontend that displays the picture. There are multiple centralized points of failure. The picture itself could be stored on a centralized server. The website that displays the picture is centralized. There will be multiple opportunities for scammers to capitalize on these weaknesses, right down to the core protocol itself.
And that's the main reason why I'm so averse to NFT art right now: it seems like it being purposefully pushed onto unsuspecting victims who will just end up throwing their money away when they could have just bought Bitcoin.
Remember 2018?
Retention rates in crypto are abysmal when the market crashes. Otherwise valuable users get wrecked and swear off crypto like someone who drank way too much alcohol the day before.
I will never drink again.
And I want higher retention rates. I want lower highs and higher lows so that people who enter the cryptosphere don't ragequit. NFTs are not going to help in that regard.
Conclusion
NFTs are an extremely mixed bag. This whole NFT art thing is going to backfire hard in 2022 but I'm sure some good stuff will come out of it eventually. When it really comes down to it, anyone can make an NFT and say it has value. Do you believe them? This is trust issue.
If you want to buy NFT art... buy NFT art. Supporting artists is important. However, if you want to buy NFT art to turn a profit or store value, you better be a damn pro at market speculation.
The future of NFTs is very clear to me: entertainment and gaming is where its at. NFTs need to have utility in order to hold value, and gaming fits that bill perfectly. In the future NFTs will be a huge part of decentralized development that lets users/gamers outside of the core development team help with the project and claim provable ownership over it. Until then it seems like people are just going crazy and making a mad dash for more cash. The greedy market always gets burned eventually. It's easy to fool people when the technology is so complicated and nonsensical to the average person.
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I just sold my first NFT for .33 ETH on Makers Place. I also set the next edition at .40 ETH so there is a spread so the buyer can flip it possible and make a profit. It's a great time to be Creative and artist and long over due.
https://makersplace.com/nspart/black-white-pinup-2-of-10-58390/
You seem to miss the point of art. It is just as valuable as collectors' cards. And do video items really have "Real World" Utility?
The world is changing. Soon we'll be living in a "Ready Player One" kind of world where people will make money just from playing games or owning virtual taxis and gas stations in games.
I will open a tech_pub
Probably true but you can't stop me from going full grandpa on this one.
YOU DAMN KIDS!!
LOUD MUSIC AND SKATEBOARDIN ON THE SIDEWALKS!!
Also no digital asset has real world utility.
I have an NFT sword.
Sword kill dragon.
The sword has digital utility.
So in a way you're saying when one purchases a painting for thousands of dollars, they're an idiot because all it is is a blank canvas. That's interesting. And it's just so easy to make a knockoff and rip someone off? That's interesting.
When the art turns into speculation ends being crap. We can see that in many modern art museums.
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I bought a poster. It's the Mona Lisa. The guy out back told me it's legit. Said his name was Leo.
lol you were trying to make that comparison for LEO? I wouldn't have known unless you gave it away. LEO brings value to Hive. Creating a counterfeit NFT doesn't really do anything except scam one person. Assuming the original NFT wasn't a scam in the first place.
LEO is a very niche network with a totally unique distribution of coins. It's very nice having all these Hive whales and orcas who are developers and whatnot in combination with the LEO whales who ended up being a very random subset of the Hive ecosystem. I feel like both systems keep each other more honest, and I've made lots of profits from both sides.
At the end of the day LEO is turning the focus to bringing money into this ecosystem from the outside. We don't have to worry about money being leeched from Hive into LEO or vice versa. This is an everybody wins scenario.
Leonardo da Vinci painted the Mona Lisa.
Could have fooled me.
Because I don't know any artist that painted anything.
Because I don't care.
Perhaps that makes me a biased.
Nah!
I think what happened just now was: A joke flew over your head, came around, and bit you in the ass. ;)
There are many damn good reasons why I chose to keep this entity exclusive to one space. People know it's me is one of them.
Yeah, this skit is legendarily hilarious. Now we just need them to do a LEO/CUB skit and its mars time! Who has the hookup at SNL?!?!?!
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Yeah did you notice how there were a bunch of parts where people were supposed to laugh but they didn't? The audience was just kinda like: "WTF is going on right now?"
lol
NFTs will get wrecked first.
The future is in the NFT
Not the NFTs that Edicted is talking about, which are currently in hyper mania mode.
You might want to rethink that never eventually. Blank walls lose their charm over time.
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I really like NBATOPSHOT but the prices of some of the moments are ridiculous. I just got into a new project called Ecomi that came out in Feb. with a working app to purchase and trade NFT’s called Veve. They have licensing with DC Comics and more already. Going to be added to Uniswap in less than 48hrs. Just made a post about the project.
I agree a lot of people will lose with the NFT’s but there is potential for some nice gains in the short to medium term with all this hype.
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Yeah, I agree, a lot of people will loose money, because they sit on assets that are good for nothing and will never find a buyer that is willing to pay as much as they did. At the same time I see a huge potential for all the markets, where holding a certain NFT can be used to generate revenue, because it is limited and has a use-case. Like you said, gaming is a HUGE section of that and I believe that the gaming industry will be disrupted like never before due to cryptos and NFTs. It is a genius combination and becoming a professional gamer will be much easier and accessible to millions of people because of this technology. Owning a 50x50 pixel image on the other hand is pretty weird and might very well become the next Dot.Com bubble.
I would like to read your thoughts on all the gaming and entertainment aspects in part 3 of your series.
I agree. What we're looking at something that has near-zero value. The gaming development thing is where the real value of NFTs will be.
The HBD stabilization proposal is woefully underfunded. It needs at least ten times more money. Stabilizing HBD can help mitigate the insane swings in the price of HIVE.
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I dont like art NFTs.
They look to me useless.
But all other forms on NFTs, Ingame items, Tickets and so on looks to me super bullish. And you know what?
For that using only a free transaction chain is available to support them hive.
TO THE MOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOON
NFT’s that have zero utility like some of the chains will end up going to zero. There will be a purge of all these over hyped projects. NFT’s that have purpose, coin flow, and gamification mechanics will survive.
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I've yet to see any strong community get wiped off the map but certainly there are many weak communities and networks that hinge on the development team.
An excellent work exposing the truth behind the NFT (people just want a money machine withput offer any value most of NFT project looks like this), I share your idea that it is currently a bubble getting ready to explode.
I find so incredible (at least to me) the prices that several of these NFT manage to reach and as you say it is only a line of code in a blockchain.
I believe the future of this technology will be gaming, currently when We buy a game or an accessory within these we are not really getting anything, if one day the supplier company goes bankrupt and the game disappears all the information (skins, accessories, etc.) would simply be lost.
By applying the blockchain technology at least we can say that we own what we have bought and store it for us, obviously this does not mean that if the game disappears probably its price itself will also be reduced (or maybe no, who knows).
A very interesting article thanks for share
Have you seen any NFT project that catches your attention?
Pp.
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Splinterlands :D
I also have my own project I need to complete.
Love it
sell that shit in Q4 :D
I Know Value When I See It....... Cost ZERO, Upside Priceless...... @edicted
Completely agree with you.
That's why I'm always amazed when I read that an NFT is being sold for thousands of dollars.
The only NFTs I care about are the ones that have utility like the Splinterlands cards that allow me to win battles and earn DEC.
Thanks and !BEER
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Yeah I need to mention Splinterlands more.
Super legit project.
Sad I never got into it.
@slowsundaygames are doing this with Unsung Hero.
Crowdsourcing monster concepts, paying with starter packs to the game. Their in-house artist does an incredible job of turning fairly rudimentary home-drawn stuff into professional looking art. Looking forward to launch.
Yeah I'm looking forward to it as well.
The use of NFTs represents a generational shift that now gives value to a digital asset, just as we have given value to any physical asset that we consider to be unique or distinct, such as gold or silver.
Many people believe that NFTs may be the next digital revolution, while other more sensationalist people believe that it is just the bubble of the moment, a situation that will never happen, because on the basis of buying and selling NFTs can be done with Ethereum, and even with credit cards, as applied by the NBA.
I'm not necessarily disagreeing with the core message presented here, but it's pretty hard to compare non-fungible assets to fungible assets like gold and silver.
My main point is not that NFTs are useless, but that they are going to undergo a great evolution.
I find it extremely likely that the first NFTs will end up being worthless compared to their upgraded counterparts.
You are right, NFTs are going to undergo a great evolution, because they have already been massified in a surprising way.
I think you are right when everything goes into crazy mode then crash it drives more people away. I'm all for steady growth that's not boom and bust. I'll be here even when prices fall as thats the best time to accumulate.
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That’s a lot to unfold...
Bagus sekali
Video very nice
Memes and Crypto are the new Renaissance.
Nice
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BEER.Hey @edicted, here is a little bit of
BEERfrom @libertycrypto27 for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.You know what would be a good use-case for NFTs? Softwware licenses. Imagine if you download a game where you need to purshase a license to unlock advanced features (or to use the software all together).
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That says it all :)
But I am totally on your side that people will get burnt on this market.
NFTs have their purpose in art as in many other ways they wont go anywhere, but the ceaze around it is just crazy :)
btw you can invest 2 hive in my art and what you get is #bullshit I transfer you 1 BST when buying this https://nftshowroom.com/solymi/gallery/solymi_bullshit-token-the-cheapest-collection_bst-a-shitcoin-white-paper-no-financial-advice
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Interesting, I think platforms that curate and showcase art through NFTs and don't necessarily allow selling/marketing may be viable and less scammy. For example, I'm an indie developer creating a platform to allow users to find NFTs tied to an Ethereum address at https://nfton.me and looking to help stop common issues such as content plagiarism and foster a space where artists and curators can share NFTs. Thanks
I don't get it either. NFTs for games like Splinterlands? Yes! Tokenizing houses, cards etc? Yes, if it's well made! But creating art NFTs just for the sake of creating art NFTs? Why? I also don't get the hype for those NFTs that are like the Capcom Street Fighter or those football player NFTs. Like, why would I want to own something like that, I can't do anything with.
The most annoying of this for me is that people talk about NFTs like it's some abstract concept. They buy project tokens just because they say that they're working with NFTs without even specifiying what exactly they are going to do.
What I mean is, it's just that - a non fungible token - it has no intrinsic value. It's just a token, why are you hyping it like it's something revolutionary (I mean not the idea of NFTs, but specific NFTs or NFT projects)?
I hate this space so much sometimes...
Whilst all the glamour of NFTs is on Ethereum, the WAX blockchain is really gaining momentum, with NFTs starting to have some use in games like you say. Also collector cards are taking off. I see it as similar to the real world of collecting cards, why does a rare basketball card have value, I never understood it, but there is some prestige in owning something that only exists in limited supply, that same effect is playing out online digitally too. the real market for collectables is still vibrant healthy and hasn't collapsed in price, so there is no reason that WAX collectibles can't maintain price (or for the rare ones appreciate in price) in the future.
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Some NFTs will have no value ... probably 90 %.... but 10% will earn you 1 Million in one day
I think what you are saying is true for 97% of all the NFTs that exist right now. There are tons of weird and low quality (or just pointless) NFTs being thrown around. Lots of people patting themselves on the back for getting in early on stuff that may not have value later on.
With that said some NFTs are great. I think Hive's own Splinterlands game, as well as NFTshowroom for art sales, are two great examples of what NFTs can be used for. If you think that rarity will matter in the digital space (like items in MMORPG video games), and if you think that people will want to have rarity within decentralized systems, then NFTs have to matter at some level.
Change NFT to CUB.
Why do people keep trying to compare non-fungible non-networks to networks/communities/tech?
Do they just not understand the technology... like at all?
The Leo community is a bunch of greedy scammers?
Try again.
"How fitting that millions of people would be exposed to a scam first so they can get absolutely burned during the inevitable crash."
A fool and their money...
Whatcha gonna do?
I've been very clear: bubble doesn't pop till Q4 (at least).
A lot of money is still left to be made with NFT.