Originally Posted By: etcjoe
NFTs are supposed to gain value due the limited availability of whatever it is you are selling. It is the proof of ownership that is the limited part. I think it is a scheme and probably will be hugely popular.

This is 100% accurate. It's already hugely popular.

But it's not sustainable.

The value of NFTs is entirely based on the expectation that the future value of the NFT will rise, because people are expecting someone in the future will pay more than they did.

But the price of something can't continue to rise forever, as people don't have an infinite amount of disposable income.

At some point, an NFT will reach an equilibrium price, where the perceived future price is lower that the selling price.

Since the only value of an NFT is that it will have a higher price in the future, the last person to purchase the NFT will be stuck holding something of negative value - they can only sell at a loss.

The tipping point for NFTs happens when collective value of negative valued NFTs outweights the sum speculative value of new NFTs.

At that point, it's game over for that NFT market.

-- David Cuny
My virtual singer development blog

Vocal control, you say. Never heard of it. Is that some kind of ProTools thing?