NFTs Are a Dangerous Trap

> It doesn't even give you ownership on anything other than a blockchain print.

I’m pretty sure my domain name NFTs give some ownership rights you are overlooking.

> BUYERS of NFTs may be blind to the fact that there’s no limit on the supply. In the case of baseball cards, there are only so many rookies a year. In the case of art, there’s a limited number of famous paintings and a limited amount of shelf space at Sotheby’s. NFTs are going to be more like Kindle books and YouTube videos.

Well, this is just flat out wrong. You can mint limited editions. And there are unlimited worthless paintings in real life which do not affect .

The author got so swept up in the NFT craze, wanting to write a trendy blog post that rides the hype wave while pretending not to, that they didn't actually do their due research before trying to distill a topic and worse, paint a biased, negative portrait.

> Let’s walk away from this one.

Let's not write ill-researched analytical blog posts with a narrative in mind before getting familiar with the subject, and then try and convince others to stay behind so we aren't the only ones missing out.

> What is its potential? What can someone do with NFTs that they couldn't do before?

The novelty comes from the underlying protocols that back the NFT. These protocols create marketplaces that are widely available and accessible and are reliably secure and robust.

Take copyright for example. Copyright laws vary across regions and marketplace. The encoding and repudiation of these copyright laws is based on analog processes. The data related to the assets in question are stored in databases with a widely varying degree of access. Verifiability across assets or even within a single asset class varies and to varying degrees of reliability. And I'm not saying this to point out that copyright laws and the assets relying on them have failed or are not value add in many ways. The fundamental point is that the technological infrastructure underlying the use of copyright laws today has a lot to be desired when it applies to ease of use for digital media.

Networks using blockchain protocols can offer a natively digital infrastructure solution that helps extend or replicate the value offered by something like copyright law. The natively digital aspect enables broader interaction which engenders more general purpose usage which ultimately leads to new consumer models (i.e. direct artist to consumer, peer to peer, etc.).

> Owning the NFT for something does nothing more than copyright already does. You can store the digital asset on your computer with or without the NFT. You can "consume" it either way as well.

The point is not to displace copyright law)(although others may argue this I do not). The value add here is in creating a widely accessible and reliable digital mechanism for creating, expressing, and modifying ownership rights. Different, or maybe even traditional, consumption models are then built on top of this to capture this value.

To your point about gaming creators choosing to do so or not; this question is really a question about what is the value of blockchain protocol networks in the first place and how would someone like a game creator benefit or capture this value? To this point, I can only point out the potential benefits as I'll be the first to agree the nature of blockchain and its value is still being explored. My arguments above are trying to express the value as I see it.

Would be curious to hear more thoughts and criticism.

It seems like it would optimally require the manufacturer to participate in creating a token representing that serial number and assigning it to the person who bought the bike who would have to transfer it to the next owner and so forth.

This is called "Demand Response" and it's an important part of grid management. For example a factory will agree to decrease consumption when asked in exchange for lower rates.

Too much power is usually handled in the generation side by incentivize producers to scale back generation or even paying to have them take a plant offline.

For a bitcoin mining operation, I suspect it would not be profitable to have all that equipment sit idle except when there is an oversupply of electricity.