Geek Culture
Published in

Geek Culture

If you Googled “Fungible,” Read this Article.

link to Photo, credit frieze

What are NFTs?

The best way to view an NFT is a stamp on an individual blockchain. These stamps are used to show ownership of specific digital files: pictures, gifs, youtube videos. Each stamp is unique and there exists only 1/1 of that stamp on the respective blockchain it is minted on. As Frieze writes

Value of NFTs

The value of NFTs to me can be summarized with these five arguments.

  1. Legacy-You will be able to exert ownership on a singular nonperishable (like art), non-fungible (like money or gold), distinctly unique item for perpetuity. Like forever, forever. An NFT will in theory last longer than dynasties, like the 3000-year-old Egyptian Empire. In theory, an NFT stamp on the blockchain will last thousands of years in the future, beyond even humans living on earth. When you buy an NFT, it will forever be attached to your identity. Generations of your family will be able to tell what your interests were and how much of a baller you were at the time.
  2. Prestige- A fundamental aspect of human nature is the desire to have wealth that stems from age. In France, this was known as Nobility of the Sword: the noblemen whose influence derived from their ancestors fighting in the Crusades. They were seen as more important than the then wealthier than the Nobility of the Robe: the aristocrats whose status was obtained from “bourgeoisie” commerce. It is this sentiment, Gatsby’s desire to be “old money” that is fueling serious NFT investments.
The main argument for an NFT now-Show off your status online.

Can’t I just screenshot it?

Battle of the Blockchains

Seminal to the value of an NFT is the “cryptographic protocols of the blockchain it is minted on.” In layman’s terms, this means the blockchain an NFT is stamped on determines a lot of its value. The importance of the blockchain, as Stanford professor Dan Boneh explained on Andreeson Horowitz’s podcast, is that an NFT serves as a certificate of authenticity that will last forever. Thus, the blockchain is minted on matters a great deal. If the Ethereum blockchain is part of our everyday lives like Billionaire Venture Capitalist Tim Draper and Reddit founder Alexis Ohanian say it will, then having your valuable internet file’s certificate of authenticity on Ethereum’s blockchain matters. If Ethereum has no cultural impact and turns out to be a “fad,” then having a mark of ownership on that blockchain makes no difference.

The Case for Cautiousness-

Good NFTs are hard work

While it seems like there are so many people who are just “making millions of dollars selling cheap photos online,” you will see that most people who get into minting NFTs are struggling to sell theirs! While there are a couple of major sales of more recent projects, usually tied to a celebrity like Grimes’, the projects that do well typically are not random. The best projects are usually done by people who have worked hard for years, without recognition for their work. Beeple is perhaps the best example of this. He shot to international fame with the $69 million dollar sale of his artwork. He has been a famous digital creator for more than a decade. The specific artwork he sold, he had worked on literally every single day since May 1st, 2007. He did this work without the expectation that it would result in a multi-million dollar sale. Other major projects, like Larvalabs’ Cryptopunks made back in 2017, mirror such longevity and sincerity during creation.

Everyone’s got a Different Cost of Acquisition

The NFTs that are selling for these big numbers may have inflated prices due to the present bull market. However, not everyone’s skin in the game costs the same! If you have been investing in cryptocurrencies since the early 2010s, then your cost per Ethereum token is DRAMATICALLY lower than someone who is getting into crypto now. For example, Mahbod Moghadam, the “gonzo Rap Genius” founder, now working on, is rumored to have invested $69,420 (a troll amount, 69=sex act, 420=reference to marijuana) dollars into Ethereum at around 1 dollar per coin. Each coin at the time of writing this is now worth ~$4700. Thus, when someone who is like him buys an NFT for however much ETH it costs, he isn’t spending the present market value of that digital asset, rather he is spending an amount that should be seen as tied to his dollar per Eth purchase years ago. Vignesh Sundaresan, who bought the Beeple NFT, has been invested in Ethereum literally since its founding. He outbid another long-term crypto investor, Justin Sun. Vignesh’s true cost of that NFT is more likely in the thousands to tens of thousands rather than 10s of millions.

Whales and Expansion of Markets

Whales Whales Whales

Should I invest?

If you have Cash

To Conclude-

NFTs are the rockstars of the investment world. At the intersection of technology, art, culture, and finance they’re rightfully attracting a lot of attention, both the good and bad kinds. If its premise works out, NFTs will revolutionize how we invest/store wealth, support our favorite creators, and most importantly how we earn our livings.



A new tech publication by Start it up (

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store