Week 09 Response -- NFT Value, Fad or Not

in #response3 years ago


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This is a response to the question, "Will NFT's maintain their value over the next 20 years, or will be they be a fad like tulips, beanie babies, or baseball cards?" posed by @generalfritz14.

My opinion is that NFT's will eventually fad out of popularity. I think this may happen within 20 years, but I do not think that it will fad away like tulips. Due to recent popularity, NFT's have begun the process of integration into some platforms. Metaverse is a new addition to Facebook's content that may implement 3D virtual galleries for NFT's and maybe NFT market places. I imagine that implementing NFT's into products like the Metaverse and into real world exchange will extend the value of NFT's over time. The reason I say that NFT's will fad out of popularity rather than value is because I think NFT's will maintain their value over a longer time than 20 years. Having NFT's integrated more of our daily interactions will maintain the value of NFT's, but I think NFT's will be more like Bitcoin. By that, I mean NFT's will be valuable, but only commonly used in some communities.
I could be convinced that NFT's would maintain a prominence if there is a more common place evidence of growth. For example, if Metaverse becomes widely used and NFT's are incorporated into the experience. Another example could be a nationwide growth in NFT galleries or exhibits. The evidence I would want to see are growths in online interactions and physical interactions. With more public use, I could understand how a value could be appropriately applied to a NFT. There would be a general "need" for the "product" and the "supply" would be limited to the creative output of a content creator. The trouble with NFT's is that, by definition, they cannot be copied to increase the supply, which would put more load on the content creators to continually produce NFT's. Otherwise, the price of the NFT's would grow due to the limited supply. With high prices, NFT's would become more exclusive to individuals with high disposable incomes. This isn't necessarily a bad thing, the content creators should still get their fair share, but it would mean that NFT's would not be as widespread among individuals with low disposable incomes. I do not foresee that NFT's will be a widespread commodity, but I would be pleasantly surprised.