NFT's

[Handsome Wes]

Hi all,

First, I apologize if this is the wrong forum to post this - and secondly I apologize if this has already been discussed in this current forum.

I have a question that I'm hoping can get answered.

Apparently, NFT's (no, I don't know what it stands for) are the big thing in the collectible-trading market. I think the creator of Twitter is selling the first "tweet" as an NFT, and the NBA is selling NFT cards.

Here's a link in today's WSJ:
https://www.wsj.com/articles/nba-top...66042?mod=e2tw

So my Q... How do you, uh, "own" an NFT? I guess it's just a digital signature in its code, but... so?

Do you also own the rights to that video? Like if there was a LeBron dunking video, could you charge ESPN if they wanted to use that vid in a clip? Will NBA Films have to contact you if they want to use that video?

Like what do you do with it? What prevents someone from copying that video if you own the, uhh, NFT?

At least with baseball cards I can say there is value because this is a physical copy of a scarce item that is also in-demand. With NFT's, I am not seeing the scarcity aspect of it - especially if I can't control the rights to it and anyone can just make a digital copy of it.

If you could explain this to me like I was an idiot, I would greatly appreciate it.

[ThoseBackPages]

NFT = Not For Trade

[MiamiMarlinsFan]

NFT = Non Fungible Token

You own the blockchain code, but that “ownership” might actually be more like licensing the blockchain since most will involve a kickback to the original NFT creator if/when you sell the NFT.

You don’t own the actual clip and will not receive any money when ESPN uses it. You own a created line of code that is attached to the a particular clip.

Anyone can see and copy the clip, but only you have the code in your digital wallet.

It terms of just digital assets, I think there’s come cool potential behind it. But a lot of people are looking to attached NFT to physically assets and I’m not looking forward to that. When attached to physical assets, the NFT just basically tracks what’s done with it, limits how it can be traded/sold, and when you sell, sends a portion of the funds to the NFT creator.

I’m sure there’s people on here who can can into more details than me.

[mikejones]

https://www.blowoutforums.com/showthread.php?t=1452516

[premium1981]

NFT = instant millionaires. Nothing else matters. Make as many as you can and buy as many as you can. Guaranteed millions. It's that easy.

[JRX]

Its a new medium for money laundering.

[pewe]

Originally Posted by MiamiMarlinsFan

NFT = Non Fungible Token

You own the blockchain code, but that “ownership” might actually be more like licensing the blockchain since most will involve a kickback to the original NFT creator if/when you sell the NFT.

You don’t own the actual clip and will not receive any money when ESPN uses it. You own a created line of code that is attached to the a particular clip.

Anyone can see and copy the clip, but only you have the code in your digital wallet.

It terms of just digital assets, I think there’s come cool potential behind it. But a lot of people are looking to attached NFT to physically assets and I’m not looking forward to that. When attached to physical assets, the NFT just basically tracks what’s done with it, limits how it can be traded/sold, and when you sell, sends a portion of the funds to the NFT creator.

I’m sure there’s people on here who can can into more details than me.

What is the economic value of the NFT if you don’t own the royalty rights?


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[JRX]

Economic value is such a boomer concept, just buy it and sell it to the next person for more!

[corockies]

Ever play hot potato? It's nothing new, a few people will get rich from it, everyone else will take it in the shorts.

[MIRRABB]

Originally Posted by pewe

What is the economic value of the NFT if you don’t own the royalty rights?


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you sell it to someone for more than you bought it, because they know they can sell it to someone for me than they bought it, etc.

[pewe]

Originally Posted by JRX

Economic value is such a boomer concept, just buy it and sell it to the next person for more!

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[JRX]

I had fun with that one lol

[Handsome Wes]

Originally Posted by MIRRABB

you sell it to someone for more than you bought it, because they know they can sell it to someone for me than they bought it, etc.

Ah. So like Tulips.

[JRX]

Well the tulip physically exists for at least a period of time. If the power grid goes down the NFT goes with it.

[MiamiMarlinsFan]

Originally Posted by pewe

What is the economic value of the NFT if you don’t own the royalty rights?


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Honestly, it’s the value you and society choose to give it. When you buy a physical Topps card you are not buying the royalty rights to that photo, you are just buying a piece of cardboard with that image on it, and yet we assign value to it. If you take NBA Top Shot for example, anyone can view that clip, they can even view it from other sources, and even copy it and save on their computer. But within the economic bubble of Top Shot, you are the only one who has the block chain code attached to it, and you are the only one who can sell it within the Top Shot app, or any other approved digital wallet app. Every time you sell a clip, Top Shot gets a percentage of that sale, and it’s tracked with the blockchain code.

I’m indifferent towards it in regards to digital assets, but we are going to start seeing this attached to physical assets, and that bums me out. Because then you will be limited to how and where you can trade/sell it, and the originator will always get a cut of the sale... on top of the auction house/website you sell on.

[noaskiecards]

I think nfts on their own are nuts

I saw a YouTube video they need to connect it with experiences

Like owning a lebron limited nft gives you access to an autograph and meet and greet or you can Lakers tickets

Now you just own an intangible item

I'd take fractional ownership of a physical backed asset over nfts but can't deny people are making millions

Just a few weeks ago psa 8 Jordan's were 50 grand, so everything slows down at some point

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[JRX]

Just wait until Goldman and the other big banks securitize NFTs and sell them to pension funds.

[noaskiecards]

The real money is creating derivatives for sports cards backed by the physical asset

I'm talking calls, puts, covered calls and puts, iron condors, along with fractional ownership

Make it liquid and it will double or triple the investing side

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[Boredlawyer]

I think NFT's may be the straw that breaks the camels back in the 2021-2022 economy. It's getting a little silly.

I think that there is so much money that has nowhere to go in the market (priced out of real estate and believe there's easy to be made on non traditional assets, people are springing for things that they don't understand, and have no traditional value, which means that they can have... Any value.

I said it in another post--I'm not a complete "Bitcoin is stupid" crowd. I bought and sold it 6-7 years ago, believing that it had utility in what exists in the "fringes" of economy--whether that be for countries where the fiat currency is unreliable and at risk of extreme inflation (Venezuela) or in the gray and illegal areas (offshore betting, selling drugs). The problem with Bitcoin is once it becomes a consistent alternative to something like a US dollar, it in theory loses its growth potential (because high extreme growth = extreme volatility, and no one wants to tie their alternate currency to something that can move 50% in a month).

NFT = only as valuable as the Blockchain commands. The intrinsic value of an NBA gif is $0.00. You own no royalty rights to the Top Shot replay, you own a line of code that only has value because some blockchain is perceived to have value.

It's the same as the Gamestop pumping to me. Gamestop really doesn't have much intrinsic value, but as long as you don't get caught holding the bag, then you can make money.

I think it comes down to--would you rather invest based on 1. Something with utility and intrinsic value (stock market, real estate) or 2. Something with no utility or intrinsic value, that is assigned value based on public perception and hype.

If I'm a guy like Gary Vee and know that I have the clout to move markets on something with no underlying value... Then I spring for route #2. The problem is that an NFT.. it does nothing. I can't live on it. I can't profit from it because there's no royalty or ownership rights. I might be able to time it right like a Gamestop.. But I'm at the mercy of anticipating the direction of social media.

If I look at a plot of land, I know it's had value since the beginning of time. I can look across the country at comparable plots and ascertain an accurate value. Even baseball cards, which having no utility, have a tradition of holding value based on name and scarcity.

With something like an NFT, there's no history and no intrinsic value. History says that owning something which doesn't have actual scarcity or utility generally holds no value over the long term.

I'm an investor that falls in the #1 category. Can I miss out on some NFT increasing 10000% in a month? Sure. But I sleep better knowing I hold things that have intrinsic value and I'm not beholden to someone like Gary Vee. All else equal, I'll take the time proven value and let the chips fall where they may.

[JRX]

If you want to know where true value lies, just watch what really rich people do. Take Gates for example, he's buying a ton of farm land. Why? because land has actual value.

[monkeymcgee]

It's funny how every NFT post ends up with the same comments.

If you don't believe in them, don't buy them. Just don't cry later about how you missed out.

[JRX]

Originally Posted by monkeymcgee

It's funny how every NFT post ends up with the same comments.

If you don't believe in them, don't buy them. Just don't cry later about how you missed out.

You left out the diamond hand and rocket ship emojis.

[pewe]

Originally Posted by monkeymcgee

It's funny how every NFT post ends up with the same comments.

If you don't believe in them, don't buy them. Just don't cry later about how you missed out.

That’s like saying I don’t believe in the number “0” because how can something represent nothing.

I just want to understand the source of intrinsic value.


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[monkeymcgee]

Originally Posted by JRX

You left out the diamond hand and rocket ship emojis.

Nah, I sell when it makes sense to. That's why I only made $40k on GME. But if you want to buy up land instead, go for it.

[monkeymcgee]

Pewe: Can't quote you, but regarding the intrinsic value I find it so interesting that a forum largely devoted to buying, holding, and selling printed cardboard struggles so much with this concept of value