NFTs are getting popular especially in the gaming world. Would you consider buying one? Why and why not?
I have done a lot of work with crypto investing, and I think I get it. I think I also get the “layer 1 of Bitcoin” versus the “layer 2 or payload capability” of ETH, ADA, etc". But I cannot get my head around the reason for existence of NFTs, or at least not how and why an image of a very small icon used in 1980s computer games can be worth a million dollars of anyone’s money. I totally get selling the rights to, say, a hotel building, so the owner can subsequently split it up into a number of pieces and allow many smaller investors to own a piece of it but the meaning of “none fungible” to me means you can’t split it up.
So in answer to your question, my own position is no - I would not consider buying one. And why not? Because I do not understand the fundamental value case for many of the NFTs that have gone to auction and been priced at moon and Mars prices.
I am sure one day I will understand on a level necessary for me to make value estimates of the NFT at auction. But until that day, I am staying well clear. Far more alternative opportunities to participate in stuff I think I do understand than to go for something I know nothing about.
Edit - I forgot to say. I do like the idea of unstoppable domains and may decide to buy one. But today I do not see a use case for me or my offspring, so have so far resisted. I bought a private car plate in the UK about 15 years ago. Useful because you don’t have to remember your registration number every time you change cars. But despite it spelling my name pretty well, and there are a lot of Gerrys in the UK, it’s only worth what I paid for it 15 years ago, and when I change cars (thankfully not that often) I have to pay a two way fee to DVLA for the pleasure of choosing my own plate. Great move DVLA. Tax on tax on tax.
It’s a speculative asset. If the price is right, and you are in the right place at the right time with the right “it”, perhaps there’s opportunity to sell for a profit.
It’s art. You like art. You have money. You buy art. You buy art again. Now you have a collection. Something you can share with yourself or others. Something that no one else can have… unless they take a screenshot of it or download a copied of it from the Internet.
Each time your NFT is sold (as an artist), you are paid a percentage. What a great deal for the artist!
Was just writing about Star Atlas and their in-game currency, ATLAS. There’s also a governance token built in called POLIS, along with an NFT marketplace coming down the road. NFTs are here to stay!