Controversy over the NFT bubble has been a hot topic these days.
There are a lot of pessimistic articles coming out day after day after day.
Bloomberg in the U.S. also reported that the NFT market has entered a cooling period in earnest.
The value of cryptocurrency continues to plummet.
There are growing concerns about the bubble theory of the NFT market and the cryptocurrency market.
And to get back to what NFT is, it's an encryption asset that records ownership of digital files, such as images and text.
It was in 2012 that the color coin, called the early version of NFT, was created.
It was in 2017 that NFT began to draw attention.
However, it was actually last year that the enthusiasm for investment in NFT began in earnest.
In the case of Open, which I introduced in the last post,
I saw the news that sales in January 2022 were close to $5 billion.
With the news that it's now less than $100 million, the debate over the NFT bubble has reignited.
So why did the price of NFT go down so much?
There are many stories, but there are many stories where the value is being adjusted due to excessive speculation.
In addition, the current war, deepening inflation, and rising U.S. interest rates are also reasons.
But I think the biggest problem is that the value of NFT is actually falling.
What this means is that more than 80% of NFTs are plagiarized works or spam.
One of the problems is that the core value is a monopoly. It's a market dominated by so-called big hands.
So let's take a look at the four criteria
that the chairman of the Korea NFT Contents Association said determine the value of NFT.
The first is scarcity. The number of digital assets is a minority or a unique number.
Secondly, symbolism. There is historical value or an interesting story.
Third, is the desire to own. It's a level of possessiveness.
Fourth, its immutability. Damage is possible.
What does this mean? Except for hacking, NFT is a digital file that is not physically compromised
The chairman once said that it is immutable.
However, as NFTs replicate, scarcity is reduced, and symbolism is undermined when auctions for profit-making begin.
Just issuing NFTs doesn't improve its value.
In fact, in places like Super Rare, they checked the artist's value first and then hung the device for sale.
However, I think the current NFT market is replicated too much,
and there are many people who only think about speculation regardless of value.
But as an advocate for the NFT market, I think these issues are a growing pain.
The NFT market is now an early market, and it has only been 1-2 years since the market was activated.
This is because I think NFT is an innovation point in the virtual world at a time when metaverse is commercialized.
The Internet also had a bubble in the early days of Web 1.0, but it didn't disappear
There are definitely people who work for the healthy culture of NFT,
and it will be a bigger market if they overcome the growing pain.
The NFT was initially used in the art trade, based on the fact that it could act as a certificate of authenticity for a work of art. In fact, many artworks were sold, and the growth was steep, showing the possibility of a new art genre.
The domestic and foreign NFT markets may still seem to be in recession,
I think we will be able to enjoy the stabilized market after the current growth pain.
My personal opinion is that although there may be a temporary bubble collapse, the NFT industry itself will not collapse.
In fact, it is becoming more commercialized and more useful, with NFT acting as an item in many P2E games.
Why don't you step into the NFT market now?
I told you last time that I'm going to upload it once a week.
But... I'm so sorry for the delay in posting because I'm working on work to be introduced to the NFT market.
I think I'll be able to visit you once every two to three weeks rather than once every week.
I hope to meet you through a posting that I can introduce after minting between June and July.
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