Earlier quoted context omitted.
What is the primary point for which you believe NFTs to be rubbish?
In what way do you think they have any intrinsic value?
In what way do you think that you think about intrinsic value?
NFTs Are a Pyramid Scheme and People Are Already Losing Money
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Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#72It's stupid at face value. No pyramid required. You cannot intrinsically link real world items to tokens. The source of truth is the real world, not the token. Add an unlimited supply of unique things, and how could anyone expect to make money from this?
A house is linked to a title. The title is a paper token.
I can take the title to a court and say “this proves that house is mine, give it back”.
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#73I wrote my first Fortran program in 1969. I have been active in the field of computing since then, both as an academic and as a programmer in industry. During this time, there have been several times when I first heard about something new, something potentially game changing. I remember some of them very clearly: 1. Around 1971: a Wang desktop computer. Imagine: a computer that fit on a desk! 2. Visicalc (spreadsheet…
What is the primary point for which you believe NFTs to be rubbish?
What legal force does an NFT bring to what it claims to authenticate?
Even a certificate of authenticity for a painting is still notionally a legal contract between the authenticator and buyers: after all, there will be consequences if they cannot show they could reasonably support the identity they establish for something.
What does an NFT do? Nothing. There are no consequences in the real world. You can make another blockchain with more NFTs. It doesn't even establish an interesting digital history for an item: they're tied to hashes, not data.
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#74Earlier quoted context omitted.
> You cannot intrinsically link real world items to tokens. The source of truth is the real world, not the token. This is also why every project do to X but with blockchain (like solving counterfeiting/authenticity, copyright, etc) is either stupid or a con using a buzzword to try and solicit investment or media attention. The reason blockchains work for cryptocurrencies is because the source of truth is the blockcha…
Blockchain doesn’t need to make it impossible to counterfeit real-world items to be useful, it just needs to reduce counterfeiting levels by reducing the profitability. It’s more than capable of doing that. If you can only sell at most one counterfeit item per authentic item, that’s already a multi-trillion dollar innovation.
I still can't see how a blockchain here would do something that a database wouldn't. A DB of authentic serial numbers with a way to mark them as claimed is all you need. If your new widget's serial is already marked as claimed on the manufacturer's website then you most likely have a counterfeit, no blockchain necessary.
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#75Don’t forget the wash trading aspect: Since this occurs on the blockchain, it’s trivially easy for someone to create two wallets and then “sell” an NFT to themself for whatever amount of money they have. If you have $10K in ETH, you can buy a $1 NFT and then trade it among your own wallets for increasing amounts of ETH up to $10K. Now your $1 NFT is “worth” $10K and you only spent as much money as the gas costs at th…
Sure you can do this. But keep in mind that "wash trading" is illegal, and you still need to declare where the money comes from when you want to cash out. Yeah, any asset that can artificially propped up. Cryptocurrencies doesn't make this harder nor easier, they simply make it possible to do without a central authority. We still have laws people need to follow in their countries, and up to government to act against…
Illegal or not, it seems to be happening: https://news.ycombinator.com/item?id=26530373
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#76It's stupid at face value. No pyramid required. You cannot intrinsically link real world items to tokens. The source of truth is the real world, not the token. Add an unlimited supply of unique things, and how could anyone expect to make money from this?
I'm sure all the new marketplaces facilitating it are making tons of it right now.
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#77Earlier quoted context omitted.
Is it not possible to put the "owned" data itself on the NFT blockchain? If so, that does seem like a serious flaw.
Data on blockchain is too expensive. Or to be more exact blockchains people actually use or care about.
Are there blockchains that people actually use or care about?
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#78Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#79It's stupid at face value. No pyramid required. You cannot intrinsically link real world items to tokens. The source of truth is the real world, not the token. Add an unlimited supply of unique things, and how could anyone expect to make money from this?
NFTs are not meant for physical items, they’re digital certificates. People literally burnt a Banksy painting before auctioning its NFT.
Excuse my ignorance, because I haven't looked into NFTs too carefully, but how do you decide which blockchain (or even block) is authoritative for a given item? Seems like something like a painting could be sold on an unlimited number of chains? If it's time priority (oldest wins), what's preventing miners from copying artwork from slower chains before they're included in a block?
Re: NFTs Are a Pyramid Scheme and People Are Already Losing Money
#80Earlier quoted context omitted.
Sure you can do this. But keep in mind that "wash trading" is illegal, and you still need to declare where the money comes from when you want to cash out. Yeah, any asset that can artificially propped up. Cryptocurrencies doesn't make this harder nor easier, they simply make it possible to do without a central authority. We still have laws people need to follow in their countries, and up to government to act against…
Illegal or not, it seems to be happening: https://news.ycombinator.com/item?id=26530373
What seems to be happening is that people (including you) are guessing that it is happening. Where is the evidence at?
Rest assure, the arm of the law is long and slow working, but eventually people breaking the law (especially in blockchain-land) will feel the effects of it, sooner or later.
As I said before, blockchains makes it easier for law enforcement, not harder, unless you're using cryptocurrencies like zcash, but they are not widely used currently.
Disclaimer: I'm myself not into NFTs because it mostly seems like hype at this point, I own zero NFTs myself and have no interest in buying. But I also care about accuracy.