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: