Where's the value in NFTs
You first saw the acronym ft show up in your tweets you got as far as not at four. And then you realize you're quickly going down the wrong path and trying to decipher it. Nfc stanford non fungible tokens now from there. If you're like me you thought it had to do with mushrooms. Maybe mario brothers. I don't know so then you read a paragraph of an article got bored or confused and moved on with the knowledge that all of your assumptions were wrong. But then you didn't actually replace it with any real knowledge okay. And so that was fine until you started seeing f. T. everywhere and you realize that maybe you should learn what it means and also you have a podcast taping coming up so here we are. And it's not that ludicrous bro. Stay with me all right. Mitchell mitchell clarke wrote a delightful article on the verge explaining t so i'm largely relying on that also wired new york times and a few other places. Let's go all right. Non fungible tokens are essentially a way that you can claim ownership of a digital thing. So think music art tweets yes. These are all reproducible. But so is a postcard of the mona lisa. So non fungible tokens exists on a blockchain at this point. Mostly a theory but others are getting on board and there are online marketplaces like open sea bull and fifty gateway where you can buy and sell the official ownership of the digital thing again. We're talking music video. Art animated gifts for artists provides a new way to sell your work and you can also set it up. So that you get a little kickback. Every time the nfc changes hands with a new owner. Lots nice so right now. You're like bro. Why would someone pay millions of dollars for an animated gif when you can just download it for free again. Why would someone bhai a monet painting for millions when you can get it on a mug from the gift shop for fifteen dollars so it all comes down to the basic tautology that some things have value just because someone decides it has value now for some people the value might be bragging rights to that end. You get to buy an nf t fred digital drawing of a cat because you are looking for a new way to show people. You are wealthy for others. Value might be about your phantom or support of an artist or musician. Kings of leon grimes dead mouse and many others have released. And fte's for music and art and for others. The value might be purely speculative. You're buying the nf t for digital drawing up a cat because you think it will rise in value as many other people agree. They want that authentic digital drawing a cat. And you're like seriously digital yes. Ten years ago. A guy named chris torres created the animated. Meam niane cat. You know it as the flying cat with a pop tart for a body and it's leaving a rainbow trail behind as soon as you google. It you're going to be like. Oh cat i totally know what you're talking about. So in february torres created an nf t version and put it up for auction and it sold for nearly six hundred thousand dollars following a last minute bidding frenzy other f- tease out there. William shatner is dental x ray digital baseball cards photos of lindsay lohan. And the first tweet. By jack dorsey just sold for two point. Nine million. don't feel too bad because the proceeds argos support a charity. So there's that and if t. Are definitely booming right now with probably more speculators than collectors and fans driving up prices but experts looking beyond the boom. See a great opportunity for a new way to guarantee authenticity. So for example nike already has a patent to create. Nfc's attached to shoes to guarantee their authenticity. Called crypto. kicks so when you consider that. A pair of air jordan twelve flu games are worth more than one hundred thousand dollars. Yeah i think. I want an fte with that purchase. Please and maybe you're still skeptical like a bunch of people in the comments of the articles. I read but seriously. How is this all that new and different. It's not like people buy sneakers art or baseball cards for the value of the materials themselves. They buy them for the aesthetics. The design the rarity as the new york times quoted. Marc andreessen. ben. Horowitz a two hundred dollar pair of sneakers is like five dollars in plastic. You're buying a feeling and right now the feeling that. Fte's is similar to one a stamp collector or baseball card collector or art collector or fashion. Or even a speculator might feel. It's that feeling that you are special because you own something someone else wants.