Are NFTs Hyped Up Bullsh*t?
Let’s break it down so we can move past the glorification.
NFTs are falling from the sky.
They’re literally everywhere. You may have noticed on platforms like Twitter that everybody’s profile picture is changing into badly drawn cartoons, inspired by pixelated Minecraft-style graphics.
This is no accident. Cryptocurrencies created blockchain. Blockchain enabled Ethereum. Ethereum led to the NFTs revolution. An NFT is simply a digital representation of creative work. Soon an NFT will be a digital representation of items in the physical world like concert tickets.
The popular website YCombinator posed the question: Are NFTs bullsh*t?
Signs of NFT hyperbole
You know NFTs are hyped up when you see headlines from CNBC like “This 12-year-old coder is set to earn over $400,000 after about 2 months selling NFTs.”
Headlines like this make me run in the opposite direction. We’re still early with NFTs. Right now they’re being peddled as an investment and a way to make huge amounts of money.
I don’t buy it.
When a technology is so new it’s best not to get caught in the hype. The hottest NFTs are CryptoPunks. Credit card company Visa paid $150,000 for one (idiots). When these mediocre illustrations were released they cost between $1 and $34. Now they can easily cost millions of dollars. Why?
CryptoPunk NFTs have become a status symbol just like a Lambo has become a wanker status symbol. Don’t buy status symbols as they’re a waste of money.
The huge risk is this: You could end up buying an NFT jpeg for $5 million and have it be worth $1 in the future. Fail.
I’m still going to experiment with NFTs, I just worry people are falling for ads disguised as content on Twitter, telling them they’ll get rich.
NFTs do a lot of good
A few years ago a friend of mine came up with a technology to fix copyright issues for content creators. This was before NFTs. The technology never quite took off but I knew he was on to something.