Irrevocable tokens, non-Fungible Token-is NFT real or Balloon?

Irrevocable tokens, non-Fungible Token-is NFT real or Balloon?

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While Hedge funds are more likely to copy MicroStrategy's playbook and buy Bitcoin, many everyday investors and curious Digitalists are looking forward to a demonstrably scarce digital asset class.

In just two years, the non-fungible token (NFT) market has seen near 10-fold growth, reaching $ 340 million in 2020.

It is the first tweet by Jack Dorsey, Twitter's co-founder and CEO, in March 2021, as an NFT worth over $ 2.9 million . The value of an NFT comes from its uniqueness because, unlike cryptocurrency, it is a digital asset that cannot be replaced by an identical item.

In the past six months, non-interchangeable tokens (NFTS) have outperformed nearly all other cryptocurrency segments.

The world has observed that digital art is sold for dazzling sums. For example, Mike Winkelmann, a digital artist under the pseudonym Beeple, sold his work “every day: the first 5,000 days” at Christie's for $ 69 million.

CryptoPunks, another digital art collection created by Larva Labs, is very expensive, with an NFT (an alien smoking a pipe) selling for $ 7.5 million.

If these numbers tell us anything, they say that tokens that cannot be replaced have reached unprecedented levels.

It is easier to sell a work of art by swindling it, unless there is a way to verify the identity of the image.

But until then, we live in a not-so-refined NFT space.

While NFTs are a new technology, their long-term value is controversial. We think it's a hoax and a sign of the 2021 market bubble:

Debatable scarcity

NFTS confirm a user's ownership of a digital file instance. While this example is unique, other unique examples can be easily created. For example, buying Jack Dorsey's first tweet is similar to buying a copy of his tweet with a unique and unchangeable ID number. So the owner of the NFT is not the owner of the original tweet.

• Historical record of not creating large, liquid markets

Previous NFT examples, such as cryptocurrency, have lost a significant part of their momentum

• Bloomberg

Price drops in the NFT's average price in April, as reported by Bloomberg .

• Carbon effect

A large carbon footprint is generated by cryptocurrencies used to buy and sell NFTS.

These were comments on static NFTS, which make up most of the NFTS traded today. However, dynamic NFTS may have some value in producing real-world applications in the future.

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