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Only 95?
i can only presume the remaining 5% is owned by NFTs Georg, who lives on the blockchain and is an outlier who should not have been counted
I was gonna say! Can’t forget about NFTs Georg!
It’s a lowball estimate.
The news here is that, contrary to popular belief, 5% of NFTs actually still hold some value.
The real question would be: how many of those 5% can be sold for more than the initial asking price.
…but NFTs were never for the buyers, they were for the creators: even if they fall to 1/1000000th the initial value, a 2.5% cut on every sale is still more than 0.
If the values fall low enough relative to transaction fees then there won’t be any transactions at all for creators to collect royalties. Also values can drop to literally $0 if it isn’t even worth a buyer or sellers time to deal with the NFT (i.e. seller can’t find buyer at any price or doesn’t bother trying).
The other 5% are less than worthless
Crypto and NFTs are complete scams, change my mind.
It’s sad, I remember when bitcoin was new and the people interested were actually interested in breaking the state control of money. Now >99% of crypto people are just grifters and people trying to get rich quick.
Most people were grifters back then too. I had a friend who was a libertarian porcfest free-stater and he was against bitcoin because he was afraid everyone would lose all their money and not be able to complete the free state project.
bitcoin skyrocketed and suckered in a lot of people to the gold rush. they didn’t want decentralized currency or anything. They just saw that it was ~16,000 dollars a bitcoin and wanted in.
My hope is the fintech people will be gone by the time someone thinks of an eco-friendly consensus protocol that isn’t Proof of Stake (ie “the people with the most money have the most power”).
Sadly time has proven that bitcoin never had good intents, it was all just marketing hype.
Cryptocurrency has its uses as unregulated currency, though that makes it easy to scam people with it.
The biggest problem is people trying to peddle it as currency.
It isn’t currency, never will be. Much more alike to bonds.
It’s an investment object with a speculative value, and no tangible value. The only value it has is what the next guy is willing to pay for it.
While currency is deflationary by nature, crypto is entirely based on demand and supply, and sure, as long as people think it will be worth more tomorrow - sky’s the limit.
Like any pyramid scheme it pays out to get in early, and get out before it collapses.
Relying on crypto is high stakes gambling, and people being people is the only reason I can find for it not having collapsed totally already.
The problem with using it as either a gamble or an investment is that the person/people holding control over the currency are doing so with the intent to make money. More often than not your money is gone the instant you pay in if they decide to make it hard/impossible to cash out. This is what Logan Paul’s scam crypto ended up doing. Say what you will about the US dollar, their main incentive is to stay in power which backs up the legitimacy of the currency. They’re not just going to rugpull the dollar because it would run counter to that goal.
It’s fundamentally impossible for crypto to fulfil that role because everyone involved is just there to make a quick buck.
The thing about bonds is that presumably the entity that issues them makes computers or tractors or potato chips or insurance. Bitcoin is like the bad guys in Captain Planet: they build a factory that eats the rain forest and spits out pollution.
Yup. Never meant to say bonds didn’t represent tangible value, but definitely see how it could read that way.
That said, I’m sure you can get bonds in companies doing crypto too.
Thats true, but you can still use it as a currency if you want to buy illegal drugs, or donations to organizations that accept it (with monero so its untraceable) and buying mullvad vpn. It’s not stable, but its an accepted way of transferring money that can be as private as cash.
Just 🤦
Where to start…
Like any pyramid scheme it pays out to get in early, and get out before it collapses.
That’s not how pyramid schemes work, the ones at the top never collapse, only the ones at the bottom end up holding the bags. GIF NFTs are pyramid schemes.
Ponzi schemes on the other hand, are the quintessential representation of fractional reserve: creditors get paid with new investors, until there is a bank run; you want to get out before that happens. USD is a Ponzi scheme, just like all currencies, including cryptos.
It’s an investment object with a speculative value, and no tangible value. The only value it has is what the next guy is willing to pay for it.
That’s a currency.
Relying on crypto is high stakes gambling
Let me introduce you to FOREX Futures and intraday HFT. There is also Crypto futures, but who’s counting.
It’s fiat, I won’t argue it was ever going to be a good currency with built-in deflation, but that’s what it was originally meant to be. It’s long since become too volatile to be anything but a speculative asset, though. It does seem curious to me what that says about the actual distinction between legitimate currencies, stock options, and pyramid scheme buy-ins.
High volatility is not a problem for a currency:
- work January, get paid $1000, pay $1000 in due bills
- work February, get paid $25000, pay $25000 in due bills
- work March, get paid $50, pay $50 in due bills
Volatility is irrelevant to a currency, unless you want to treat it as an investment.
- work January, get paid 1000, pay 600 in bills and lay 400 aside for potential emergencies
- work February, medical emergency comes up but medical bills now cost 10000 so you can’t afford them with the 400 you set aside and you also can’t work because of the emergency so you take 20000 debth to repay the medical cost and other bills
- work March to repay your debth, but you only get 50 while still having a debth of 20000
Volatility is irrelevant to a currency, unless you want to treat it as an investment.
can’t afford them with the 400 you set aside
Meaning, you treated currency as an investment. What did I just say?
What you just said was a thing that you can only do in an idealised world where you never get sick and all your bills are always payed in the month you get them. Nice of you to completely ignore the rest of the answer that kind of points to why in the real world you have to set aside money and why in the real world a volatile currency is useless
many are yes, but not all. Bitcoin and Ethereum (among others) are legit, and there are a few NFT projects out there that actually try to do the right thing even if they’re not worth much at all. Many other NFTs are nothing but pictures that have no meaningful value except what you assign it to, but they never pretended to be anything else so that’s still not a scam in my book
NFTs aren’t always a scam… sometimes they are just tax fraud.
Okay I’ll change your mind slightly. It’s not always a scam. Sometimes they are just a silly mistake. Some artist caught up with a new way their digital art can make money. Thus it’s hard to call that a scam but instead just a poor attempt on a misunderstood fad.
Shitcoins and GIF NFTs are complete scams, nothing to argue there.
Also Papal Indulgences, stamp collections, carbon offsets, the USD… we can go on 🤷
If the price of rare stamps craters you can always just use the stamp to mail a letter to your friend. They are onysical items with actual scarcity and legit demand from collectors. Loads of people have collected stamps, coins, and baseball cards for decades and even centuries
Rare stamps collections include stamps from countries that no longer exist, are no longer valid, or are only commemorative and were never valid in the first place. Same thing for coins and banknotes, some you can only use to look at them.
They’re items with scarcity… that is no always all that scarce, and there are a lot of scams going around. Some are fake, some are so good of a fake that are unique and valuable again… 🤷
(but… “use the stamp to mail a letter”? What century is this? 😉)
I send a check to my trash service because they want to charge a fee for me to pay online. That requires a stamp, and my mom sends me card a every few months despite us texting regularly.
“use the stamp to mail a letter”? What century is this?
Hey, I’ve had to use at least two stamps since I bought them around 3 years ago!
I take it you aren’t a fan of capitalism. I’m being facetious. Obviously I see what you’re pulling here.
Not that far off there; I’m not a fan of any “-ism”. All the [word]-isms seem to quickly veer from “let’s defend the right to [word]” off into “[word] is the only thing that matters”.
i assumed it was 100%
For those of us with even an inkling of common sense it might as well be lol
With some more time, the other 5% will follow suit.
BREAKING NEWS Report “95% of water : wet”
Shocked it’s not 100%
5% are worth more than zero due to collector value. Like beanie babies.
Always have been 🌎👨🚀🔫
Along with the rest of crypto, but don’t tell them…
No, you can’t paint that broad of a stroke. It’s true that crypto INVESTING might be no better gambling, but crypto wasn’t invented to be an investment tool, it was invented to be a financial transaction tool, and in that regard it has some real utility.
But that’s not how most people use it anymore. It’s become almost entirely a speculation market. Plus, transaction times for payments on Bitcoin e.g. make it totally infeasible for use in any retail application.
It’s just a bunch of people passing Monopoly money around to each other at this point, trying to pretend they’re making bank.
it was invented to be a financial transaction tool
Which it failed at
No, they made it to be an investment tool from the start. They wanted it to be a new gold standard, where the limited resource increases in value over time. Completely ignoring history on why that is a bad idea. It’s was created to be the ultimate, “I got mine, so fuck you!”
Bitcoin at least is inherently deflationary because there’s a fixed market cap of 21 million bitcoins. Once all of those are mined, all value from then on is some fraction of a fraction of one of those, thus they decrease in value over time. I should also note, I like Bitcoin as a proof of concept but don’t think it’s viable as a currency, and PoW isn’t viable as a consensus protocol (although it demonstrated that such consensus protocols are possible).
Deflationary means the costs of goods and services fall relative to the currency. So holding onto 1BTC or whatever would make you richer in the future just by holding onto it. Also means debts become increasingly more expensive over time.
Hm, yeah I think you’re right. I was wondering why it wasn’t sitting right in my head. Deflation encourages hoarding because the value of each unit keeps increasing so if you spend now instead of later you lose some amount of potential value. I don’t think it was meant to be a scam though. In this case I’d consider it ignorance of the knock-on effects later exploited rather than an explicit conspiracy from the get-go.
Negative utility is still utility, right?
As with everything else, it only holds the value we assign to it
You may not mean it this way, so no offense intended either way, but…
Crypto bros love to say “Oh, the value of any currency is arbitrary, it’s all just based on people believing that it’s worth something!”
But you know why I prefer transacting in USD? Cuz on a yearly basis, the government comes asking for a certain amount from me, and they’ll only take USD. And if they don’t get it, they’ll do all sorts of bad things to me.
So while I may think gold or Dogecoin or limited edition Beanie Babies are a superior medium of exchange, I still have an unavoidable need to acquire USD. It’s not my belief in USD that gives it value – it’s the guy with the sword.
Ironically, there is a similar way in which crypto has value. Cuz ransomware attacks tend to demand payment in crypto.
So they did actually make a legitimate currency, but the value doesn’t come from belief. It comes from blackmail.
Yeah you right, I didn’t mean it in that way. Actually I completely agree with you, except with the caveat that USD does work the exact same way, but the value assigned to it is agreed upon by wayyyyyyy more people, and backed by the government (but again that’s just a group of people with a lot of power). But all currencies work that way, hence exchange rates.
We can only exchange little green papers for actual goods because everybody agrees it’s worth something, hence why they can turn around and exchange it for whatever they want. Crypto doesn’t have the same history or consistency, and in a slightly hilarious way it looks like it never will, opposed to what many people thought. Yeah, I don’t understand people that are intensely dogmatic about things, like change your beliefs with emerging evidence yes? Crypto bros: it’s still the future bro! It’ll happen!
So they did actually make a legitimate currency, but the value doesn’t come from belief. It comes from blackmail.
Kinda sorta, but not really. Cryptocurrency’s real value comes from people willing to trade it in exchange for real items. Unfortunately these items tended to be drugs in the beginning. Once someone was able to buy that first pizza with Bitcoin is when it became legitimized. As long as people are willing to exchange it for real items, it’s a legitimate currency.
Once someone was able to buy that first pizza with Bitcoin is when it became legitimized. As long as people are willing to exchange it for real items, it’s a legitimate currency.
He paid someone else in Bitcoin, but that person bought the pizza in USD. Even today, no major business is accepting direct crypto payments for anything besides publicity stunts. There are, however, plenty of services which automate what happened in the “crypto pizza” case: they’ll convert it to USD for you so that you can say the transaction was kinda sorta done via crypto.
That doesn’t negate all of the real stuff you can buy today with cryptocurrency. It may not be legal stuff, but it’s still physical and still commerce. And the fact that there are people willing to convert cryptocurrency to USD and exchange that for stuff means that cryptocurrency is considered a legitimate currency. As soon as no one is willing to trade real dollars for crypto is when crypto will die. Of course this is cryptocurrency’s strength, and it’s fatal weakness. It’s only worth something as long as someone will willing to accept it, and that can change in a heartbeat.
Buying drugs with Bitcoin is more of a legitimate use than NFTs at least
5% margin of error
To the surprise of absolutely no one with more than three brain cells to rub together.
I’m extremely surprised that the number is only 95%.
100%
Who knew that implementing scarcity where there isn’t any wouldn’t work?
TL;DR: A recent report reveals that the NFT market has collapsed, with 95% of NFTs being practically worthless. The hype around NFTs peaked in 2021, but since then, interest has waned, leaving many artists and investors in a tough spot. While not all NFTs are scams, the majority have lost their value, and the environmental impact of crypto remains a concern.
