OVERVIEW
A speech given by Drs. Quinn & Jonathon Button at Oklahoma State University explain the case for NFT's and why they are more than just digital art. The Drs. themselves have a very impressive educational and professional background that started in Nicaragua and landed them in NFT/ cryptocurrency universe today.
Drs. Quinn & Jonathon Button began their journey into this economic sector after noticing a big return on their Ethereum and BitCoin investments. During this time in 2020, Beeple sold his first NFT for 69 million dollars, which acted as the launch pad for the Drs. to research and eventually start their careers in this market.
WHAT IS A NFT?
Before discussing NFTs, the Drs. break down the aspects of NFTs and what makes them so unique. An NFT, non-fungible token, at its simplest is a "unique digital identifier that cannot be copied, substituted or divided" (Dr. Button & Dr. Button). These NFTs are recorded on "the" blockchain to record prove ownership and catalog creator. Dr. J. Button explains that what makes an NFT valuable is that it reflects the value of the thing it represents, like a "sports ticket or deed to a building".
WHAT CAN THEY PROVIDE TO THE MARKET?
The Drs. also explain the waves of change that NFTs have had on the art community, expanding digital art and how it can change based on data, or art created by A.I. Going beyond just art, certain platforms can even provide royalties to owners of art or music. Music can be published on the blockchain and from this has arisen the company, Royal.io, which allows people to invest in artists and earn royalties as their music is streamed. They also give examples of companies in the fashion industries using NFT's as marketing strategies while providing payouts to NFT owners at later dates, wither through resell value, or by proving actual material items if a person can prove ownership to the advertised NFT. They also explain that that it may begin to trend for some luxury items to begin to be tagged with RFIDs that upload to the blockchain to prove ownership and other action items. Then, years down the road, proving ownership and authenticity is made simple and can help someone with re-selling their luxury item if they choose to. The Drs. also take a dive into digital universes and ways of interacting and socializing through these universes. They also showcase some of the ways creators make NFTs into memberships and that these memberships can be re-sold for a higher value or held on to, as creators reward members in the longterm. The potential that NFTs have for actions such as this, can prove to be of tremendous value to society.
THOUGHTS
Overall, I thought the Drs. provided some very interesting information about NFTs that I had not known before hand. I have read about NFTs and how they are attached to art, as well as their hand in things such as the Metaverse, but I had not heard of the other uses previously. My thoughts towards some of these things differ. I would say that in my case, NFTs not dealing with material items are practically useless and not something I would ever buy. I like art and looking at art, however I would never pay an obscene amount to claim that I am the sole owner of the art. I am perfectly happy to buy a print of the original work and hang it in my home because I like how it looks. I understand that not everyone is the same and that others may value art highly, perhaps for its actual beauty or for the return on their investment.
WHO CAN PLAY THE NFT GAME (AND MAKE CONSIDERABLE PROFIT)?
Which brings me to my next point, (most) NFTs are useless to me and bring no value because I do not have the luxury of having that much money. Both Drs. say that the market is highly volatile and one must do their own research beforehand, which is true, I just do not think this market will ever appeal to me or a majority of people like me. If I had enough money to buy an NFT, I think I would rather invest it into something safer in the stock market. High-risk/ high reward investments to not appeal to me. The high buy in for a NFT with considerable promise to make money in the future is likely to be a considerable amount of money. Many people who have the extra couple grand on them, would rather invest in a safer market.
THE METAVERSE?
As for investing in the Metaverse, this would be a very lengthy investment. The technology is far from done and still has a long way to go to attract a large market. I do not think I would ever be interested in a virtual concert or virtual property or even playing a game in the Metaverse (I do like videogames). However, as technology progresses I can see how it would become a digital hub for those who seek digital lifestyles. Places like the Metaverse have the opportunity to blend social media, gaming, lifestyle, and even work into one immersive experience.
WHAT CAN A POAP BRING TO THE TABLE?
The POAP's (proof of attendance protocols) is interesting in theory, but I am not a sentimental person who needs to collect tokens of where I have been and what I have collected. Maybe I will take a picture, but highly unlikely that I ever post it. A POAP would not motivate me to attend something, it would most likely be a "bonus". Or gaming to earn money is something that brought a lot of value to people in the Philippines, but is not applicable to my case. I think that one of the main selling points for NFTs that came from the Drs. is the fact that you have the opportunity to make money. I would just like to have hobbies and my job. The "hustle" culture is something I think will become outdated as GenZ heads towards the trend of life - work balance and fight for better paying jobs ( I say life - work, because life comes first).
FINAL THOUGHTS
The main value factor of an NFT is the sole ownership aspect, to which is highly valuable to some. However, I question how ownership can be discerned if people are making money off of "art" created by an A.I. One of the examples given in the speech, was an NFT created by an A.I., after Google and an artist fed it pictures of countless national park landscapes to create "new" landscapes.
Using the NFTs to add material items to a block chain is something that is ingenious and would not be surprised if it became the norm. It gets rid of the nuisance that the owner has to go through for authenticity. It would also be interesting if things such as scheduled cleaning or check-ups could show up on the block chain for the item.
Overall, I did learn more about the NFT market and why it will be useful for somethings in the future, but likely not be apart of my future. I don't ever see myself investing an NFT or buying a "membership" from a creator for perks, but I can see how the Metaverse market is something that will likely grow in size and value as technology progresses. However, for those who do their research and have the funding and motive, NFTs and the cryptocurrency market can be an opportunity for success.
