Uncomfortable

2022-01-25 17:28

NFTs are not unlike the fine art market - it's not about what something is worth (because there is no intrinsic financial value to fine art), it's about what one is willing to pay for it. NFTs are honestly a pretty messed up area - it's hype piled onto hype piled onto hype, with people hoping that their investments will bear fruit. This leads to all kinds of messed up behaviour. It's rife with the potential for artists themselves to buy their own NFTs at inflated prices in order to create the illusion of demand.

Some people compare NFTs with stocks (where prices fluctuate wildly at times), but even that's not really an accurate representation. While company valuations can become swollen well beyond any basis, companies themselves can be assessed based on their capacity to generate revenue. Their fundamentals, so to speak. For NFTs, there is no such baseline.

I would not recommend that anyone dive into the NFT market. No one can really know where it's going to go, but it really does look like a game of hot potato where no one wants to be the last one holding the spud before the bubble bursts and people move on.

All that said, this subreddit is reserved for those working through the lessons on drawabox.com as explained here, so this question is well outside of its scope. Hopefully my answer has helped clarify some things for you (although to be fair, the way NFTs are going, you could just be posting across multiple subreddits to drum up more attention - not that I mean to accuse you, just that it's that crazy out there).

I should clarify one thing though - when I say that there's no intrinsic financial value to fine art, I'm referring to the kind of art that is sold at gallery or auction. There are other kinds of art - or rather, other cases - where art is able to hold a more concrete value, or at least the time put into creating a piece does. That is commercial/contract work where artists are commissioned to produce a piece as directed, and paid for partial or full licensing of that piece so it can then go on to be used as part of a larger product. Video games, comic books, books, anything that requires advertisement - these are all areas where the production of a piece is ascribed more concrete value, based on the estimates of how it would influence the capacity for that final product to generate revenue. But of course, that's a whole different barrel of monkeys.