CNBC had an interview with Gary about the Cryptostuff… I have rarely heard more nonsense and combination of BS bingo in one talk.
Value of sneakers, sports cards, handbags is not universal. It only works within a community that accepts the value.
If we stay at a monetary value, because on one hand the magic “market will decide” but at the end he mentions brand and communication aka bling bling.
We had so many examples of hypes like the tulip mania where tulips are still beautiful but had no intrinsic value and a bubble was created. We see same with cryptocurrencies and now the holy NFTs.
The advocates of these hypes try to put themselves into the same row as established things to shine more and better. Wirecard wanted to be one of these shiny things as well and we know how it ended.
Here the NFTs are set in relation with artists and brands. Completely ignoring that physical objects have a real life value. I can sit and enjoy a Warhol or Pollock. CHANEL, Mercedes-Benz AG or Nike work without connectivity and compute power. Well I am not sure about the Merc, maybe an old one.
But comparing a product or a brand with NFT is, simply said: naive at best and manipulative and dishonest at worst.
NFT is NOT an asset, it’s NOT a virtual piece of art and it’s NOT a value. It’s just a protected reference to a digital resource. It’s a symlink in a blockchain.
NFTs and its advocates are pretending to deal with uniqueness. What exactly constitutes trading of the protected link and alleged ownership therein is btw not universally defined. In particular, it lacks the meaningfulness of the validity and integrity of the digital resource. It’s a dishonest discussion pretending a digital asset. The traded objects or files are not in the blockchain itself, nor in the exclusive possession of the buyer, but usually on a server operated by a third party. Problems arise when servers go offline and the files cannot be accessed, the files are manipulated or re-linked with NFTs in other blockchains and sold multiple times.
So in best case an NFT can be just a certificate.
The original Questions and Answers from the CNBC interview are in the comment section.