The best way to think of an NFT is a file on the blockchain. The about price to upload per MB on something like ETH is about $10,000 in ETH for the gas fee. Meaning your picture of a rock if it was truly on the blockchain, it would cost roughly $100k.
Outside of extremes, what you’re actually buying is a a file with a link to a picture, music file, 3D model, etc on a random server. A server that is 100% centralized, and if anything happens to it then what you thought you’re buying goes away. It is basically as if you and everyone else who thought they were buying this 1 picture all paid for your own text file with the same link.
Realistically, buying an NFT as itself is similar to buying software. It can be useful in the right context. But there isn’t any resell value in virtually any software, and if there is any. Then the amount tends to be far lower than what you paid. This is why there is a number of reports showing most of the people who are selling NFT art are buying their own to make the price look more than what it is. And many that do this end up losing money at the end of the day.
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# Anyways, some people are going to look at the following to figure out where to put their money. Look at the companies involved, but don’t look at the NFT itself. Look at what it holds/represents and if someone in the future will realistically want to buy it from you. Even more if the servers as mentioned above goes down.
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Where NFT will be useful now and the future:
**Cars:** There is a few companies working on having reports and the life of the car on an NFT. This making it where log books and so on can’t be faked and much of this logging with be automatic. A major push in this is the insurance companies. Guess why….
**Property title:** This will help stop title theft, and this will help with a few other problems.
**Identification:** This allowing safe voting since the NFT itself can ear mark itself, remote voting, and a few other things.
**Medical:** This allowing the person to not having to fill out paper work over and over, better record keeping, and it protects medical companies for if a person jumps from doctor to doctor to load up on drugs. This also automatically letting the doctors know what insurance will and will not pay for.
**Resume:** This goes along with the ID, but it makes it impossible for someone to fake their work history to get ahead.
**Store credit/coupons/receipt:** This hooking up with the ID system and you can make sure a person really has store credit, the receipt stays on the blockchain, and with things like CBDC or other ways to track payment info (even more if they can buy this info. They can credit you with a coupon. So say if they see you buy a lot of hardware every other Tuesday at this one store down the street. They can give you discounts to get you to swing their way. And the stores next door to where you normally shop on Friday will send you something to get you to swing by while you’re already out in their area. (trust me, I’m not a fan of this. But this is where things seem to be going)
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I can keep going, but the point is virtually none of this anyone will want to buy, and you aren’t buying. Like just like you are buying a deed to a property. People associate the buy with the property and not the deed itself. Same here, yes you’re buying the NFT of the deed or whatever NFT. But you’re more likely to associate your buy with the physical thing or however you use it.
Even if it is straight up software that only opens with the wallet that owns it. It isn’t like you’re thinking you’re buying an .exe file. You’re most likely thinking you’re buying some game or whatever software.
So without that item or association, the entire thing breaks down. The argument about putting pictures up or getting stuff for the metaverse is a bad argument also. Like if you want to get something for here and now, then fine. But the problem is, none of the metaverses actually talk to each other yet (if ever in a true way). Meaning your clothes in 1 metaverse will most likely never work in another metaverse. The picture might transfer because it is a simple picture/video on some random server and that is a common item. But much of the rest most likely won’t transfer over.
So IMO if you are to buy a NFT, buy it for you and simply expect it to never make you a cent. Know that when the server goes down or glitches out, you lost the picture, 3D model, or whatever. And know there is plenty of ways to get free NFT. But also note what is being worked on
It’s not always stored on centralised servers. Some minting platforms use IPFS.
The sad part is that most people know that.
They just buy them so they can sell them at higher price, while screaming how revolutionary NFTs are.
I just can’t see NFTs (keyword: *non-fungible* ) being practical for any use where information is subject to change. This includes IDs (name changes can and do happen for various reasons), titles, registrations, deeds, résumés, transcripts, medical records, service records, etc. Not everything can or should be forced into a format it’s just not suited to.
and still anything of listed _usable_ applications for NFTs – better done without NFTs, will work faster and cheaper
It’s sad how speculation has ruined NFT’s reputation.
It’s a technology that should’ve been implemented quietly behind the scenes, not something that people mindlessly bet on …
Not disagreeing with you per say, but for titles and records why wouldn’t someone use say OriginTrail or The Graph for that type of stuff?
NFT would be great for sport tickets and concerts given scalpers sell fake tickets all the time.
I can’t even imagine how could a jpeg be a good investment over time, still, many people know that too, but it’s the hype that gets them going.
Of course, some have and will make shitloads of money, but true HODLERS might not be so happy
Not a big nft fan but I’m pretty sure a lot of them are stored on a filecoin which is decentralised
I disagree with the assessment. You’re not buying the file (a file that, literally anyone can copy and save to their computer), you’re buying *demonstrable ownership* of the file (or more accurately data within the file—whether that is pixels or text). That may not be very useful for a rock picture, if it could be very useful if that rock picture suddenly appears in a National Geographic cover and they don’t have the rights to it.
Don’t you know there are nfts which are not just jpegs? Nfts can be used to unlock your private chat of your favourite youtuber. It can be used to play games with. You can stake/hold some of them and gain currency of it’s native project. And that is just the begining, there are endless opportunities. (im not talking about ape coins and those kind of degenerated nfts, but you cannot throw everything in the same basket)
Great post
Not everything has to be an investment, buying art is a good enough use case. artists need to eat too.
Found 7 Cardano NFT few days ago
Made 8k Ada / wife is very happy
I guess it depends on the person and what the nft is.
I dont know about long term-but they are ~~good~~ great investments right now. They are like tokens. Do the research-look at the fundamentals. Some will be duds. Some will be ok. Some will be great. Look at the board apes.
The ones actually making money are people who are creating NFTs, precisely because others just want to buy em in hopes they appreciate
My pushback. If you’re looking at nfts in terms of investing to either quick flip, or hold and sell later, don’t look at investing in random “art” nfts. Look at projects that have utility as a collectible, with massive fan bases. The collectibles market is huge, and the nft space is almost perfectly suited for it. Why people are saying these “art nfts” are going to be trash very soon, is because they don’t have the cult following that IP in the collectibles market does. Brands like marvel, DC, Disney. Collectors are willing to spend bands on their favorite characters and brands. On literal pieces of cardboard and plastic. Find a project with licenced brands you can be sure has the fan base to progress the market, and you won’t be sorry.