The Gold Rush Gold Rush
An NFT is worth the ownership stake of the server that it points at. This is a huge problem. Jacob Kastrenakes writing for the Verge details the problems, the solutions, and the problems with those solutions. Basically, as long as an NFT is corrected backed off a distributed server infrastructure, and the people running that infrastructure do a good job, and someone keeps paying for all of this, your link will keep pointing to your asset. That is really what an NFT is: a promise that someone will maintain the infrastructure for you to keep accessing your file on a distributed network.
Underlying NFT are Etherium coins. Since the beginning of this particular burst of NFT interest, the price of each coin has risen by roughly $400. While some platforms offer free to begin options for NFTs, the key is the price of gas, Etherium. The argument for the entire NFT enterprise not being a churn operation for Etherium is that a strong art market seems to exist around the product. Of course art too is very much subject to bubble dynamics.
Bubbles, while a very useful concept, are tricky. In the old sense, the are tricky because they are hard to detect and that undetectablity for folks like Eugene Fama would indicate that they may not even be a thing, conversely there are clearly speculative feedbacks that reach escape velocity from all other market dynamics. I tend to subscribe to the…
