[HN Gopher] The Worrisome Rise of NFTs
       ___________________________________________________________________
        
       The Worrisome Rise of NFTs
        
       Author : zwieback
       Score  : 61 points
       Date   : 2022-01-13 22:01 UTC (1 hours ago)
        
 (HTM) web link (nautil.us)
 (TXT) w3m dump (nautil.us)
        
       | rvz wrote:
       | Here we go again. 'NFTs is a scam', 'web3 is a bubble', 'This is
       | a going to crash', etc. They already know it is a scam, ponzi and
       | a bubble which is why everyone is cashing in on the hype before
       | it collapses.
       | 
       | 90% - 98% of these NFTs will not survive and will be worthless,
       | so let us ignore this common form of NFTs (images, videos, etc)
       | and look at NFTs that have utility and value like blockchain
       | domain names like ENS, which at least that is useful.
       | 
       | The fact you cannot store the NFT image, video or audio on the
       | blockchain tells you alone it is a scam anyway. Even if you could
       | do that, how would you totally remove the image, video or audio
       | if criminals and terrorists also use it for storing illegal
       | content?
       | 
       | So, if you think it is going to collapse, just ignore it.
       | Otherwise we will all be back to complain about NFTs in another
       | thread once again.
        
         | runarberg wrote:
         | > So, if you think it is going to collapse, just ignore it.
         | Otherwise we will all be back to complain about NFTs in another
         | thread once again.
         | 
         | I don't think this is fair. Thousands of people will be scammed
         | out of their savings. Peta joules of energy will be wasted.
         | Hundreds of art pieces will be stolen. This is entirely
         | preventable with legislation and enforcement, and while we wait
         | for that, this damage can be minimized by informing the public.
         | Just ignoring NFTs until the bubble bursts is allowing
         | unnecessary harm to continue. That is not a very humane course
         | of action.
        
       | hnuser847 wrote:
       | Professor of made up field writes an article bemoaning the
       | existing of made up money. Oh, and how these made up tokens are
       | going to literally end all human life.
        
       | delabay wrote:
        
       | diogenesjunior wrote:
       | One of my favorite rappers, Nas, is selling royalty rights to his
       | songs as NFTs[0]. I think selling NFTs as if they were trading
       | cards is silly, but what Nas is doing? I think that's actually
       | pretty cool. Thoughts?
       | 
       | 0: https://www.nme.com/news/music/nas-to-sell-royalty-rights-
       | to...
        
         | quickthrowman wrote:
         | I only have one thing to say here: "Smarten up Nas" Jay-Z, The
         | Takeover, _The Blueprint_ (2001)
        
         | candiddevmike wrote:
         | What benefit does he have selling it via NFT vs something like
         | ebay?
        
         | julianz wrote:
         | The NFT has nothing to do with the transaction here. You're
         | giving something of value to Nas in return for a slice of a
         | revenue stream. Nas could choose to do that with a regular old
         | fashioned contract. The NFT is just an extremely expensive way
         | to print the receipt, and introduces a third party to the
         | process that doesn't need to be there. What happens when they
         | go out of business or pivot to something else in a couple of
         | years - are you still going to get your royalties then?
        
       | kryogen1c wrote:
       | i flagged this article. there is no new or intersting
       | information. it is an opinion piece on a well-known subject both
       | sides have thoroughly voiced their opinions on. regardless, the
       | article itself is barely coherent and i dont even detect a
       | running theme.
       | 
       | im a crypto hater and id rather this not be here.
        
       | 1970-01-01 wrote:
       | I have a bridge to sell you. It's an unbelievable deal for
       | anyone, but I don't think you're ready for it.
        
       | daenz wrote:
       | To me, NFTs reek of crypto FOMO. It's like a manifestation of all
       | of those who missed out on the Bitcoin wave, and all of those who
       | want a second version of the Bitcoin wave. The concentrated
       | desire of those two groups create a reality distortion field
       | around NFTs being cool and valuable.
        
       | golemotron wrote:
       | > The much bigger question, though, has less to do with these
       | emergent upstarts in our informational world and more to do with
       | humanity's overall trajectory. Any species that endlessly grows,
       | and continually invents energy-hungry processes, may not be
       | destined for a happy ending.
       | 
       | Unless energy consumptive processes lead you off-world for more
       | resources. I'm surprised that the author, an astrobiologist,
       | doesn't see a more open ended future.
        
       | friendlydog wrote:
       | Commercial aviation makes up 918 million metric tons of carbon.
       | 
       | Bitcoin mining makes up 22 million metric tons.
       | 
       | I'm less worried about NFTs than I am air travel.
        
         | 2muchcoffeeman wrote:
         | This is a bad argument.
         | 
         | Just because something we currently do is worse than something
         | we want to do, doesn't mean the new thing is good. Nor does it
         | mean we should add to our current burden unnecessarily.
         | 
         | It also ignores what we use the old thing for. Flight has
         | enabled so much: fast response to disasters, faster shipping of
         | goods, saving human lives. The entire planet can benefit from
         | flight. Crypto is used by a small minority and seems pretty
         | much fueled by speculation.
         | 
         | The only legitimate use of crypto is as a currency in places
         | where the economy is poor, or the state can too easily seize
         | your assets etc.
        
         | api wrote:
         | Umm... commercial aviation is just a tad more useful...
        
         | perrygeo wrote:
         | But air travel has tangible social and cultural value: visiting
         | clients, friends, colleagues, and family.
         | 
         | NFTs do not provide social value. That's the central argument
         | to the article. Did you read it?
        
         | mandmandam wrote:
         | 22 million metric tons is 22 million metric fucking tons.
         | 
         | And there's no reason for it. None.
         | 
         | There are better cryptocurrencies: ones with no mining, that
         | use a fraction of the energy.
         | 
         | Nano, for example, uses _six million_ times less energy per
         | transaction, and is mining free. It 's fully operational,
         | putting every Bitcoin maxi lie to shame.
        
         | hnbad wrote:
         | In other words: a single cryptocurrency is generating 1/42th
         | the carbon as all commercial aviation. The carbon generated by
         | the two things is only one order of magnitude apart.
         | 
         | If you consider that one of the two is (prior to COVID) used by
         | a significant number of citizens of Western countries for
         | vacations, business trips or visiting family, whereas the other
         | is primarily used for financial speculation, money laundering
         | and grey/black market financial transactions, this should be
         | even more appalling.
         | 
         | I don't know what makes you think you can put these two numbers
         | side by side and have Bitcoin's carbon emissions look like the
         | reasonable one. Especially when aviation is an established
         | industry and has been the target of ecological regulations for
         | years.
        
         | acdha wrote:
         | Commercial aviation is at least useful: every year many
         | millions of people travel for business, school, family, and
         | pleasure needs which would be non-trivial to replace and
         | aviation cargo is a key part of the global supply chain.
         | 
         | If Bitcoin turned off tomorrow, some speculators would be very
         | upset and nobody else would notice because 13 years in it still
         | hasn't found something it can do competitively with
         | alternatives which are significantly cheaper, easier to use,
         | and less polluting.
        
       | pphysch wrote:
       | don't worry, "web3" nonsense will be among the first bubbles to
       | pop as US monetary policy tightens over the next couple years
        
         | UncleOxidant wrote:
         | I'd replace the 'as' with 'if' above. I'm not convinced the Fed
         | has the guts to significantly tighten monetary policy at this
         | point. It's not just the NFT market that would crash, it's
         | stocks and real estate as well - followed by a pretty
         | significant recession.
        
       | ourmandave wrote:
       | NFTs are the blockchain version of the International Star
       | Registry.
       | 
       | At least those scammers send you a participation badge suitable
       | for framing.
        
       | echelon wrote:
       | When the GAP is getting into NFTs, you know the bubble has
       | already burst.
       | 
       | Pogs3.
        
         | randomdata wrote:
         | People have been buying "high end" artwork as a tax shelter for
         | a 100 years. Proving ownership through digital means instead of
         | paperwork is insignificant to the practice.
        
           | Hasu wrote:
           | NFTs do not confer, imply, or prove ownership of artwork.
        
       | legutierr wrote:
       | > Blockchain technology is purposefully burdensome and
       | computationally distributed, making it notoriously energy
       | intensive. Estimates put the energy used to create and trade a
       | cryptocurrency like Bitcoin on a par with the total consumption
       | of a country like Sweden. And that's without accounting for the
       | environmental footprint of the physical computer hardware.
       | 
       | Another critic who is willing to criticize without updating their
       | knowledge as to the current state of the technology. Blockchain
       | is not the same as proof-of-work. Yes, Bitcoin is energy-
       | intensive, but other consensus algorithms do not use energy at
       | nearly the same scale.
        
         | protoax wrote:
         | What percentage of total cumulative cryptocurrency volume is
         | exchanged using PoW rather than PoS?
         | 
         | The PoW market share is and historically has been pretty
         | massive so I don't think it's hugely disingenuous or through a
         | complete lack of understanding that the two are conflated.
        
         | Sebb767 wrote:
         | > Blockchain is not the same as proof-of-stake.
         | 
         | Will this is also true, I'm pretty sure this should have been
         | proof-of-work. PoS is actually one of the less energy intensive
         | alternatives.
        
           | legutierr wrote:
           | Of course, yes. Corrected.
        
         | ghaff wrote:
         | I think you probably mean proof-of-work which is the most
         | energy intensive.
        
           | legutierr wrote:
           | Of course. Thank you.
        
         | fabian2k wrote:
         | I think it is fair to criticize this technology on the current
         | state, any future improvements first have to prove themselves.
        
           | legutierr wrote:
           | Among the most popular blockchain networks right now, only
           | Bitcoin and Ethereum and their forks (including code forks
           | like Dogecoin and Litecoin) are still using proof-of-work.
           | And Ethereum is moving away from it.
           | 
           | After Ethereum migrates to proof-of-stake, of the top 20
           | cryptocurrencies by market cap, only Bitcoin, Dogecoin and
           | Tether (which is a multi-chain stablecoin) will operate on
           | proof-of-work networks.
           | 
           | https://coinmarketcap.com/
           | 
           | Alternatives to proof-of-work are no longer "future" tech.
        
             | fabian2k wrote:
             | So I don't claim to understand any of this in detail, I
             | only have some superficial knowledge here. How much of the
             | NFT space works without Ethereum? My understanding is zero.
             | 
             | They're moving away from it is fine, but they haven't yet.
             | I'll believe it when they actually do that. And then we'll
             | see how that idea works in practice. And we'll see if there
             | are any new, interesting problems with proof of stake.
        
               | legutierr wrote:
               | I am familiar with a not-insignificant NFT market
               | facilitated Solana, and I imagine that people are trying
               | to release NFTs on other blockchains as well. There is a
               | significant incentive to move to these other chains,
               | because Ethereum is so expensive to use. But yes, most
               | NFTs are issued via Ethereum smart contracts.
               | 
               | Ethereum is operating a proof-of-stake chain right now in
               | production, and is scheduled to switch over this year. I
               | would wager that they do complete the transition before
               | the close of 2022.
        
       | [deleted]
        
       | EGreg wrote:
       | _The company Ethereum (that supports cryptocurrency as well as
       | NFTs) has indicated it aims to cut energy use by more than 99
       | percent by changing its core methodology._
       | 
       | Interesting, Ethereum is referred to as a company by these
       | authors?
        
         | delabay wrote:
         | This typo/oversight/error/whatever shows the depth of
         | misunderstanding the author has about the subject he or she
         | writes. People of hacker news will still love the content, but
         | nobody outside of this bubble will view this as an honest
         | criticism.
         | 
         | If you want a truly great critique from a person who REALLY
         | understands, read Moxie Marlinspike:
         | https://moxie.org/2022/01/07/web3-first-impressions.html
        
           | EGreg wrote:
           | I liked it a lot!
           | 
           | I wrote a very substantive rebuttal that I hope you like as
           | well: https://community.intercoin.org/t/web3-moxie-signal-
           | telegram...
        
         | JaimeThompson wrote:
         | Possibly this meaning?
         | 
         | 3. An assemblage or association of persons, either permanent or
         | transient. [1913 Webster]
        
       | abetusk wrote:
       | I would like to see an actual measured critique or discussion of
       | NFTs and adjacent cryptocurrencies.
       | 
       | I'm absolutely willing to hear that NFTs (and related
       | cryptocurrencies) are bad for the environment, bad for society,
       | have no "intrinsic" value, but I'd really like to hear some
       | counterpoints.
       | 
       | For example.
       | 
       | * Which is worse in terms of environmental costs: ordering 100
       | T-shirts or minting an NFT [0]?
       | 
       | * There will always be fads, regardless of NFTs. Beanie Babies
       | were the fad in the 2000s that bootstrapped PayPal and EBay [1]
       | 
       | * There is at least an argument, whether it's true or not, that
       | cryptocurrency can/will bootstrap solar adoption [2]
       | 
       | * Explorations of what it means to have "unique" art, especially
       | as it pertains to the current ability to mass produce and copy
       | maybe with real attempts at a critique against academic artists
       | who believe in intrinsic value of fine art vs. digital art.
       | 
       | Though I'm not sure if there's any concrete statistics, it's at
       | least a well accepted hypothesis that fine art is used as a tax
       | evasion and/or money laundering device. If anyone has references
       | on this point, I would appreciate it.
       | 
       | Again, maybe NFTs are an indication of societal decline, but I'd
       | like to have a good faith discussion about it instead of
       | incredulous dismissals.
       | 
       | [0]
       | https://web.archive.org/web/20211112062740/https://twitter.c...
       | 
       | [1] https://morfene.com/021.pdf (pg 43-44)
       | 
       | [2]
       | https://assets.ctfassets.net/2d5q1td6cyxq/5mRjc9X5LTXFFihIlT...
        
       | strict9 wrote:
       | > _NFTs are comically bereft of anything we would associate with
       | social or cultural value._
       | 
       | This subjective opinion is frequently trotted out to describe
       | digital items that people pay money for. The arguments used in
       | this piece can just as easily apply to video games or anything
       | else.
       | 
       | There isn't anything new presented here, just one person railing
       | against something they do not like using familiar arguments. IMO
       | not the type of thought provoking content that people come to HN
       | for.
        
         | jayd16 wrote:
         | NFTs aren't the content and you should not conflate them.
        
         | [deleted]
        
         | OJFord wrote:
         | I assume you mean in-game trinkets and costumes etc. rather
         | than video games themselves?
         | 
         | The latter seems like a massive stretch, and I don't know why
         | it wouldn't include films too.
        
         | [deleted]
        
         | vultour wrote:
         | This video game comparison is super incorrect. If you own an
         | item in a game it's very often to show it off because others
         | can't use it, it's only for you. The closed source nature of
         | games enables this. Nobody would buy them if they were easily
         | used by anyone but you had a super legit receipt saying "mhm
         | this guy actually paid for it". NFTs of dumb copy pasted JPEGs
         | are completely useless.
        
           | strict9 wrote:
           | You misunderstood my argument. I'm not comparing NFTs to
           | video games for ownership purposes, but it's "contribution to
           | society."
           | 
           | The statement that NFTs "have no societal or cultural value"
           | has been historically attributed to video games and other
           | forms of leisurely/fun activity. It's a bad argument.
        
       | SMAAART wrote:
       | "Worrisome"?
       | 
       | New tech will always bring out fear and anxiety, and fear and
       | anxiety secures eyeballs and votes. Blockchain is here to stay,
       | and Art will always leverage new tech.
       | 
       | Simialar arguments were made at the dawn of the internet, and at
       | the dawn of photography as far as Art is concerned.
       | 
       | NFTs are Art, that's for sure. The concept of ownership that is
       | challenged might as well be part of the Art itself.
        
       | WriterGuy2021 wrote:
       | "An astrobiologist says non-fungible tokens do not bode well for
       | our species's future. " This is a historical subhead.
        
         | ccamrobertson wrote:
         | And the article doesn't fail to live up to it --
         | 
         | "...because of the potential [of blockchain] to outpace any
         | efforts to transition to zero-carbon energy production."
         | 
         | I think that even the most craven cryptocurrency and NFT buyers
         | have yet to envision such exponential scenarios that
         | 'blockchain' consumes resources at a clip that subsumes other
         | greenhouse-gas activities like, flying, driving, HVAC, etc.
         | 
         | "There is of course another solution: We stop reinventing
         | things like currency or certification until we have a proper
         | plan [...] until humanity has figured out a way to generate all
         | our energy cleanly, from solar, nuclear, and so on, would make
         | more sense."
         | 
         | "There is of course another solution: We cease all human
         | behaviors [...]".
        
       | dexwiz wrote:
       | Digital goods have proven to be viable goods that people will pay
       | for, trade, and hold. Counter Strike Cosmetics, Fortnite Skins,
       | and iTunes downloads are just a few examples of something that
       | used to be a labeled as a gimmick, but are now big money makers.
       | It's very easy to extends these to NFTs, a seemingly more generic
       | digital good that is not tied to a specific company.
       | 
       | But In Game Cosmetics have something that NFTs still seem to
       | lack, a way to use them. Sure you can use an NFT in a Twitter
       | Profile, but so can I with a simple copy/paste. Is anyone really
       | going to surf a metamask wallet gallery to look at others' NFTs?
       | Probably not. But that cool Counter Strike Knife skin can be used
       | in an actual game that people actually play. Until NFTs can be
       | used in a way that is not easily stolen, they will be relegated
       | to speculation and money laundering vehicles like every other
       | shitcoin out there. In theory games could plug into federated
       | markets where an NFT could be used in multiple games, but where
       | is the incentive to open a walled garden that prints money?
       | 
       | The economic and energy arguments are just bikeshedding the real
       | issue of finding an actual purpose for NFTs. 90% of people
       | probably have never been to a museum to look existing art outside
       | of school field trips, why will that change just because it's
       | digital? Just because digital goods are viable, doesn't make NFTs
       | viable by association.
        
       | labrador wrote:
       | I'm as concerned as the next person about energy use, but I did
       | read some counterpoints in an article published yesterday [1]
       | 
       |  _The House Energy and Commerce Committee's Oversight and
       | Investigations Subcommittee is reportedly going to investigate
       | cryptocurrency's effect on the environment..._
       | 
       |  _But the meme that bitcoin or cryptocurrency uses as much power
       | as one country or another, promoted by The New York Times last
       | September, for example, deserves a bit of pushback on a couple of
       | fronts._
       | 
       | [1] https://www.aei.org/technology-and-innovation/no-hearing-
       | on-...
       | 
       | Edit: and then someone pushes back on Nic Carter today:
       | 
       | https://jpkoning.blogspot.com/2022/01/the-fallacy-of-bitcoin...
        
         | quickthrowman wrote:
         | This piece argues that we should listen to a VC partner that is
         | invested in cryptocurrency about the energy usage of
         | cryptocurrency. This is like listening to an oil company giving
         | advice about fighting climate change. You'll have to do better
         | than this.
         | 
         | I'm not sure why I expected any better from a partisan think
         | tank.
         | 
         | They pushed back on Nic Carter (I'm guessing here) because he
         | has a financial incentive to make crypto look good. This is not
         | hard to understand.
        
           | skybrian wrote:
           | This is reason for suspicion but not for blanket dismissal.
           | If you dismiss every self-interested argument you miss a lot.
        
         | Zamicol wrote:
         | NTF's aren't on Bitcoin. They're on Ethereum which is switching
         | over to PoS.
        
           | dralley wrote:
           | >They're on Ethereum which is switching over to PoS.
           | 
           | It's been switching over to PoS for years. I distinctly
           | remember articles in 2019 about how they'd switch by the end
           | of 2020, articles in 2020 about how they'd switch by the end
           | of 2021, and here we are in 2022.
           | 
           | The point holds until they actually do make the switch.
        
             | heckerhut wrote:
             | Update your facts my friend this criticism is stale and has
             | been superseded by a million major events by now. Read the
             | news or hold back on your deprecated knowledge.
        
             | Zamicol wrote:
             | Ethereum is already running PoS for over a year.
             | 
             | Just not all of Ethereum is running PoS. All of Ethereum
             | will switch over and it's currently planned for July.
        
         | edmundsauto wrote:
         | The specifics of this pushback don't seem that strong to me.
         | FTA:
         | 
         | 1. "standard method of inferring miners' collective electricity
         | use from the "hash rate" of networks relies on guessing what
         | kind of mining equipment did the hashing."
         | 
         | 2. "The energy-consumption profile of cryptocurrencies leans
         | toward stranded energy and renewables"
         | 
         | #2, in particular, is completely irrelevant to how much energy
         | is used - it's just hand waving and saying that some of the
         | energy is renewable. Pushback #1 is just saying there are
         | assumptions about miner efficiency in the energy use estimates
         | - valid point, but it's not really a pushback, just the
         | explicit statement of an assumption the analysis makes.
         | 
         | These do not strike me as particularly powerful arguments,
         | especially since one of them (#2) is irrelevant to the question
         | at hand: how much energy does crypto use?
        
         | Uehreka wrote:
         | What bothers me personally is that they use so much energy
         | _now_, even though they're still pretty fringe. Sure, a lot of
         | people have a little crypto floating around, but not most
         | people, and almost no one is using it as a medium for exchange
         | on a daily basis. And yet it's still using ~0.5% of the world's
         | energy (aka as much as a mid-sized country).
         | 
         | I feel like you have to pick one: Either argue that crypto is a
         | niche hobby that won't get much more traction, and that 0.5% of
         | humanity's total power usage is not that bad. Or express your
         | ambition for crypto to run the world and become a fundamental
         | part of everyone's life, and have an explanation for how to
         | square this with a multiplication of humanity's total energy
         | usage and the effects that will have on energy prices, silicon
         | prices and the climate. But I'm tired of people arguing for
         | tomorrow's revolution using today's energy usage numbers.
        
       | e67f70028a46fba wrote:
       | if, by "worrisome", you mean "hilarious"
        
       | joeman1000 wrote:
       | I'm honestly surprised that hysterics about NFTs have dragged on
       | so long. People must be super bored to give a fuck about this or
       | become upset. People just want to trade proof of ownership, as
       | defined in their own sense. They aren't really bothering anyone
       | or causing any havoc. Why are people so bloody crazy about it?
       | Just ignore it for fucks sake.
        
       | api wrote:
       | I checked out OpenSea a few days ago to see what was selling. I
       | went in with low expectations but I was still shocked. The
       | hottest NFTs are all trash. It's a bunch of dumb ape doodles and
       | piles of variations on the same few templates. Some of them are
       | algorithmically generated.
       | 
       | It's just shockingly dumb, yet I have smart people I follow on
       | Twitter and elsewhere who are convinced this is all world
       | changing. I keep asking for people to point me to the evidence
       | and it's never there. I've been asking for years.
        
         | nikanj wrote:
         | Yet people keep putting their life savings into it - and coming
         | out significantly richer.
         | 
         | It's rather frustrating how well the market has been rewarding
         | bad decisions
        
           | api wrote:
           | It's all built on historically low (or even effectively
           | negative) interest rates. We've been in a crazy low rate
           | environment since 2008 and COVID pushed the money printing
           | into overdrive. When inflation eventually forces interest
           | rates to be raised a lot of these crazy bubbles are going to
           | pop almost instantly.
           | 
           | The alternative, a deflationary depression, would probably
           | have been a lot more painful and destructive. Instead of mass
           | defaults and cascades of bankruptcies we get million dollar
           | ape doodles.
        
       | dvt wrote:
       | At this point, articles on NFTs are the same as articles on
       | vaccines or articles on Jan 6, or Trump, or anything
       | controversial. It's purely done to drive clicks and serves no
       | real dialectic purpose (there are, of course, _some_ thoughtful
       | writers, but the vast majority is drivel).
        
       | gringoDan wrote:
       | This is a lazy argument that could apply to any art or leisure
       | activity. Counterpoint (and shameless plug) - NFTs are one of the
       | best bundles ever created. They combine:
       | 
       | 1. A display of wealth.
       | 
       | 2. An elite social network.
       | 
       | 3. A signal of good taste.
       | 
       | 4. A limited collectible.
       | 
       | 5. The excitement of roulette.
       | 
       | https://paranoidenough.com/2021/12/21/The-Value-of-the-NFT-B...
        
         | AlexandrB wrote:
         | > 3. A signal of good taste.
         | 
         | Or, given the current crop of popular NFTs, the lack thereof.
        
       | threeseed wrote:
       | The worst thing is the constant and malicious lie being
       | perpetuated.
       | 
       | You do not own an NFT in any legal or moral sense. The ownership
       | is not recognised in any country, by any court or international
       | body.
       | 
       | All you have is an entry in a logical database that says you own
       | it. But unless you have signed a contract with the seller
       | transferring or licensing copyright then it as meaningless as you
       | buying a certificate saying you've named a planet.
        
         | password1 wrote:
         | The irony is that most NFT do not include any copyright or
         | commercial rights. Only the "respectable" ones do, others are
         | just a link to an image and a pinky promise that it won't be on
         | another marketplace.
        
         | ugjka wrote:
         | I remember one of my friends wanted to do an NFT of some sort
         | and i jokingly remarked "I'll paypal you 10EUR and I'll pretend
         | I own something"
        
         | chollida1 wrote:
         | And most NFT's are just links that aren't embedded on the
         | blockchain that could go away tomorrow or be switched to
         | something else without any warning.
        
         | daenz wrote:
         | Possession is nine-tenths of the law. If nobody can take it
         | from you, you "own" it, and everything else follows from that.
         | "It" being: your crypto identity bound to some metadata.
        
           | threeseed wrote:
           | No the artist owns it. They have the copyright.
           | 
           | So the funny part is that if you buy an NFT not only can I
           | legally copy it but I can approach the artist, buy the
           | copyright and then sue you for copyright infringement.
        
             | daenz wrote:
             | I said you own metadata bound to your crypto identity, not
             | the thing that the artist is making into an NFT.
        
             | dvt wrote:
             | While this is (in most cases) true, you still own, say, a
             | poster you bought of some artwork. The NFT is a sort of
             | "poster" you own. You still _own_ it, so I don 't
             | understand your criticism.
        
               | threeseed wrote:
               | The difference is that people need your permission to
               | make a copy of that poster.
               | 
               | I can take your NFT image, duplicate it and use it
               | however I want. And you have no legal or moral right to
               | say no.
        
               | AlexandrB wrote:
               | Owning and NFT is more like owning a sign that says
               | there's a poster on the wall in the next room that's
               | yours. For many NFTs the poster may be removed at any
               | time by a third party you have no influence over. All you
               | own is the sign.
        
           | 0x500x79 wrote:
           | Is this comment in support of NFTs or against NFTs? From what
           | I have seen commonly the subject of the NFT is hosted
           | somewhere not on the blockchain (possessed by someone else).
        
             | daenz wrote:
             | The comment is neutral. If the blockchain is decentralized,
             | it's a lot harder to take the entries from people, but to
             | your point, if it's hosted by a central entity, your
             | ownership of anything is a lot weaker.
        
         | matheusmoreira wrote:
         | Yeah. NFTs are not a bad idea but the current implementation is
         | basically a scam. Ownership of these tokens means nothing,
         | people pay for them and still own nothing.
         | 
         | They _could_ be good. Imagine if instead of the current
         | licensing hell you could just buy an NFT that represents your
         | ownership of a song, a film, a video game. Companies wouldn 't
         | be able to take it away from you remotely, you'd be able to
         | resell it at a later date. Such a thing could actually make
         | copyright more tolerable. Unfortunately this would probably
         | require an actual legal framework around it to guarantee these
         | rights.
        
           | acdha wrote:
           | > Unfortunately this would probably require an actual legal
           | framework around it to guarantee these rights.
           | 
           | I'd go stronger to "would definitely require". If companies
           | wanted to offer this, there's no reason they couldn't right
           | now so the question really needs to be how you'd get them to
           | offer more consumer-friendly terms. One option is a legal
           | requirement but that would be non-trivial to implement to
           | avoid various scams (e.g. if I license a movie and sell it to
           | you, how comfortable are they with the idea that I didn't
           | save the decryption key when I legally had it?).
           | 
           | The most interesting example I've seen of what this could
           | look like is Movies Anywhere. My understanding is that
           | Disney's motivation was preventing a single tech company like
           | Apple, Amazon, Netflix, etc. from having a large enough share
           | of the market that they'd be able to dictate terms to the
           | movie studies the way Apple was able to use iTunes to push
           | the music industry to be less exploitative. That only works
           | with a list of trusted parties and seems to be about as much
           | as I'd expect to see in the current climate.
        
         | rr808 wrote:
         | Even worse is that a bunch of NFTs are sold by people that
         | didn't even own the art in the first place.
         | https://www.vice.com/en/article/n7vxe7/people-are-stealing-a...
        
           | robotresearcher wrote:
           | I have a bridge to sell you, 2020s style.
           | 
           | https://en.wikipedia.org/wiki/George_C._Parker
        
         | legutierr wrote:
         | "NFT" means "Non-fungible token". It means that one token of a
         | type is not interchangeable with another token of the same
         | type. It does not mean "a link to a JPEG that is hosted on
         | OpenSea."
         | 
         | > You do not own an NFT in any legal or moral sense.
         | 
         | Often this is the case, but it doesn't need to be the case, it
         | shouldn't be the case, and it was never intended to be the
         | case.
         | 
         | Yes, it is stupid that people are buying NFTs that are not
         | linked to a legal or contractual grant of intellectual
         | property. However, it is also the case that there _are_ in fact
         | NFTs being sold that do in fact attempt to convey an ownership
         | right via contract.
        
           | acdha wrote:
           | The problem is that the salespeople _frequently_ misrepresent
           | NFTs as having legal meaning as a key part of the explanation
           | for why you should pay so much for one and they _never_
           | mention that the same basis you'd need to convey the legal
           | contract also means that you have a system you can use
           | instead of a blockchain at much lower cost.
        
         | deergomoo wrote:
         | Even aside from the baloney idea of ownership they offer, the
         | thing that continues to baffle me about NFTs is that the very
         | nature of them assumes that ownership is inherently valuable.
         | 
         | Buying a painting allows me to hang it on the wall and admire
         | it, where is where I derive the value of owning that painting.
         | Buying a digital videogame allows me play it, even though there
         | is no physical good (and is also a questionable definition of
         | ownership due to DRM).
         | 
         | Buying an NFT allows me to...show off I guess? It entirely
         | separates the ownership from the ability the experience the
         | owned thing, which I find bewildering. To me, 100% of the value
         | of owning something is the ability to experience it. If I can
         | freely experience something, then the concept of "owning" it is
         | worthless. It would be different if it endowed some semblance
         | of _actual_ ownership, e.g. copyright, but that has been
         | functioning perfectly well without blockchains for hundreds of
         | years.
        
           | gruez wrote:
           | >Buying a painting allows me to hang it on the wall and
           | admire it, where is where I derive the value of owning that
           | painting.
           | 
           | That's true, but why do people spend millions on an original
           | [famous artist] painting? If all they want to do is admire
           | the painting, surely a high quality replica (ie. the type
           | that can fool the naked eye) would be more than sufficient?
        
         | jtxt wrote:
         | Yeah I think the art/jpeg part of it is somewhat meaningless.
         | The creator can probably still can claim copyright, and of
         | course anyone can copy it. At one level it's lust a link to URL
         | that can be bought and traded.
         | 
         | But also: proof of ownership of a NFT can be access to
         | something else, that can be the "utility" defined by the NFT
         | creator. Like the Board Ape Yacht Club gives access to parties.
         | Others give other value add like YouTube revenue license
         | rewards if the NFT shows up in an animation for example.
         | (Quarter Machine) I think "utility" is where more of the
         | potential is. It can be valuable with the people/company
         | backing it and keeping their word.
        
       | golemotron wrote:
       | > It's possible to see a purpose for cryptocurrencies, but NFTs
       | are (for now) almost comically bereft of anything most of us
       | would associate with social or cultural value.
       | 
       | They incentivize energy production and research into better
       | energy production. That isn't trivial.
        
         | AlexandrB wrote:
         | Unless you believe that NFTs are useful in and of themselves,
         | this is a classic example of the Broken Window Fallacy[1]. For
         | example, we could "incentivize energy production" just as well
         | by phasing out LED light bulbs and replacing them with
         | incandescent ones. So why don't we?
         | 
         | [1] https://en.wikipedia.org/wiki/Parable_of_the_broken_window
        
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