Why shouldn’t you buy NFT?
A lot of people are defending NFT’s saying they are key to the metaverse and here’s why that makes pretty much no sense.
First up, fast explanations of both.
NFT’s
Gimmick where images, software, video clips, and music can be put on a blockchain and somehow a claim of ownership happens.
No actual legal ownership.
Nothing to stop people from putting them on other blockchains.
Everything can be copied and pasted.
It offers zero actual protection, but they claim the vanity will one day be worth money has led to 7 billion dollars in sales on NFT’s.
Metaverse
The internet, but virtual reality.
A term is really kind of ignored until recently when Facebook changed their name to Meta and made the goal to sell 25 million Oculus sets by 2024.
Where people think the metaverse and NFT’s may meet.
The metaverse will mainly be used for gaming and people believe certain items might be desired to have scarcity on them.
An NFT could ideally promise that a person buys a ray gun in a game and that could be the only one, due to some sort of digital contract.
Here’s why the entire thing is pretty stupid.
1. This has nothing to do with NFT’s sold.
A lot of people are trying to justify NFT investments with the metaverse.
Most NFT’s being sold are quite literally just images people claiming to be artists made in 45 seconds and copied them into a dozen colors to sell.
An NFT being sold is only on one blockchain and can only have ownership claimed there.
The trick to that is there are thousands of blockchains and can be put on all of them.
Meaning someone owning an NFT on an image doesn’t promise them that image in a certain game.
Also, it’s very unlikely competitors like Sony, Nintendo & Microsoft would use the same ones.
2. Valuation
At 7 billion dollars, it’s speculated that NFT’s have tens of billions in stored values. Some actually believe they are worth more than the entire global art market, which has a value at about 50 billion.
The issue here is the global video game market did 155 billion in revenue last year, which the majority was just selling the games.
This claim NFT’s will go up in value is pretty insane, seeing how for a real return to hit, they’d be worth more over the actual gaming industry.
I’m pretty sure 90%+ of Candy Crush, Pokémon & Fortnite players just want to play the game and not own some digital art on it.
3. Games can already do this.
Games pre NFT’s have already had in-game rules on ownership and proof there.
The game Second Life did this in the 2000s and claimed people were making money off of selling digital fashion items and more.
The entire thing was a fluke, where a very boring game flopped and the claims people were living full time off of it turned out to be mostly false.
That said, this has been done before and there’s no actual value an NFT adds.
Final thoughts
The reason I posted this was I just watched an interview with Keanu Reeves & Carrie Anne Moss talking about Matrix 4.
Keanu was asked what he thought of the matrix NFT’s being sold and started laughing going “the easy to duplicate security”.
Found it funny and am glad at least one famous person isn’t hyping this junk.
