The Missing Utility of NFTs In The Metaverse

NFTs are absolutely booming, but there’s one thing I don’t actually get

What can you do with them exactly. Not a whole lot it turns out.

Read this cool forbes article and thery bring up the same point:

The answer is that scarcity is necessary, but not sufficient enough on its own, to create value. Therefore, we can look at value as a mix of various other parameters:

Value = Scarcity + Utility + Reputation + Liquidity

Utility represents how easily the NFT can be used and what you can actually do with it; reputation represents value given by the profile — popularity or infamy — of the original creator or source; and liquidity represents how easy it is to buy and sell the NFT.

I can easily see gaming becoming the dominant economic activity in the Metaverse. But until NFTs represent actual real-world, they are just speculative investment (if you could even call it that)

Without utility, NFTs are essentially just digital beanie babies:

Definitely agree on NFTs essentially becoming digital beanie babies

Let me get boring for a second. Worth nothing that the late 90s speculative bubble was due to interest rates being low for a few years.

Same thing happening, except on an insane scale

The key phrases is ‘at some point’

#GetInEarly #BuyTheDip #BeanieBaby


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