The mania attached to non-fungible tokens (NFTs) shows no signs of abating. There are many in the space who claim the sector is just getting started.
While the exuberance leading people to pay (what I consider to be) crazy prices for pixelated art needs is one aspect of it, the big picture needs to be considered in the context of ‘frame’.
These NFTs are priced in terms of cryptocurrency (usually Ethereum [ETH]) and my report merely translated the crypto price into something we can all understand — dollars.
However, dollars or trash tokens, as many crypto enthusiasts refer to them, have little interest to the crypto rich. They may own tens of thousands of Ethereum (current value AU$4,779 each) which cost them next to nothing.
Hence spending 10, 20, or 50 of them to buy some digital art is of no real consequence.
That’s the reality of the brave new digital world we are entering.
But there is also a much broader perspective to consider.
As the global asset register becomes digitised, tokens will represent indisputable proof of ownership.
Eventually, you’ll have a token that represents your house. When you want to sell your home, you’ll simply transfer the token to the purchaser who will remit an acceptable form of payment through the blockchain.
This could be a government authorised currency or Bitcoin [BTC], Ethereum, or anything else you are choosing to accept as payment.
This will all be managed through a smart contract with no middleman involved.
To the uninitiated it all sounds terribly complicated, but it actually opens up incredible opportunities.
Consider, for example, education records. Loads of people gild the lily on their resume to claim training, degrees, or certificates that they haven’t actually got. They know that few employers can be bothered doing the extensive checks while physical ‘proof’ can be cooked up on any home PC with some Photoshop skills.
In the future, a candidate will simply provide a link to their blockchain ‘wallet’ where every achievement will be stored. These will be NFTs too and the records will be immutable.
My point being that the crazy tulip pic and cartoon prices aren’t what NFT technology is all about. The ultimate utility is in the contracts and it is coming our way much faster than many people think.
This leads me to a reader question about why I am trying to educate readers about bitcoin, Ethereum, and other cryptocurrencies. He wrote:
‘I find your constant promotion of Bitcoin a bit strange.’
It may be strange if you don’t accept or understand the seismic shift that is coming our way on the back of crypto and blockchain technology.
It is the future and every single one of us needs to prepare for that future.
Those that do will be in control of their own lives while the rest will be rendered government serfs.
Confidential readers who embraced the ideas we discussed 12 months ago have made multiples of their initial capital since then.
I think we are just getting started.
We are only at the very early stages of massive societal change. One of the subscription newsletters I subscribe to in this space used this image to convey how we are currently situated in respect to other contemporary matters:
If he’s correct, there’s a heck of a lot more upside in the crypto-technology space with a 10-fold move (or more) possible.
Of course, I don’t know if that’s what will happen or not.
However, given my understanding of what is going on right now, I know I want to be part of whatever is to come.
For The Rum Rebellion
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