NFTs' Good, Bad and Ugly Sides | Motilal Oswal
NFTs' Good, Bad and Ugly Sides | Motilal Oswal

The Good The Bad And The Ugly Faces Of NFTs

Since 2017, the NFT ecosystem has slowly grown, and since we were a small group at the time, it was pretty simple to spot suspicious initiatives and we had the opportunity to conduct some study and ask questions. Then, in 2021, a sudden spike in activity caught everyone off guard. Many expected NFTs to usher in a revolution.

 

 

  • The start of a discourse that will go nowhere

There are numerous approaches for resolving disputes, some of which are more peaceful. The consensual way was not the favored option. It is not important to spend energy; what is important is to understand where this energy originates from. The storyline for Bitcoin is fairly obvious. A bit less so for NFTs, and here is where the tension seems to solidify.

  • What precisely is the benefit of "the NFT community"?

The vast majority of people are here to earn money and get wealthy in this ecosystem, and there are only two ways to do so: labor or trade. The first choice is less risky, and revenue is generated on a regular basis in a predictable way. The organization or firm for which you work may be different from normal, but the purpose remains the same: to pool resources in a compensated manner to accomplish a greater goal.

The second choice, on the other hand, will quickly reveal a difficulty: appropriately valuing the item to be acquired, sold, or resold. In such a nascent market, how can you know what an asset's "correct price" is? Is it by examining sales history or by slicing the NFT into several shards' to arrive at an overall estimate? or by enlisting the help of a dependable third party?

  • Morale and ethics

Community ethics and morality have become the regulators in this domain in the absence of legislation. However, in the face of government inactivity, more extreme activities have been organized throughout the globe in a struggle "at all costs" against this centralized and unfair regulatory system so that future generations might live in a more equitable society.

The NFT purchases seems to have been grouped together as part of this campaign against faceless businesses and supposedly weak governments, and the ecosystem's attempts to self-regulate are not adequate in the eyes of these new adversaries. The NFT community has responded to criticism without offering suggestions for change with the self-mockery it is used to, and the hate has grown visceral as a result.

  • Crypto NFTs are here to stay

This is the pro-NFT side's sledgehammer argument. NFTs purchases are here to stay, and they'll be around for a long time. Because some investors consider these little tokens as a long-term investment, they don't want them to vanish. As a result, they will go to great lengths to guarantee that technology endures. NFTs also provide artists a tool to measure what was previously unquantifiable. And to have peer-to-peer access to a worldwide market through a censorship-proof payment method.

Surprisingly, this concept seems to entice the world's largest platforms. These corporations need your personal data, which is worth more than gold, in order to continue to provide a "free" service based on ever more invasive advertising targeting. There has to be a solution somewhere in the center, but no one has discovered it yet. What is clear is that, now more than ever, our online behaviors have real-world implications.

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