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- NFT is nothing but a link to find what digitally exists somewhere on the distributed server, and from there, you hope your connection keeps pointing to your asset.
- The bubble is a complex & tricky yet beneficial concept for understanding stocks and trade.
- The fear of missing out (FOMO) is now an official investing strategy, and the need not be left behind.
- The disarray, inability to understand, and the fear of not recognizing the opportunity when it was knocking on your door, is fuelling this ultimate gold rush.
Lately, the NFT biz has witnessed a volcanic rise in the public interest and their art craze. But only recently have they started realizing the accompanying setbacks. Oh, you haven’t encountered any? No problem, let me enlighten you.
First and foremost, what is your opinion is NFT?
“Non Fungible Tokens (NFT) represent ownership of unique digital items like art, animated GIFs, songs, or items in video games.” yeah yeah, I know that you all have done your research! What my question is, if you are buying an NFT, what do you expect to get? The digital piece that you purchased? That’s what they represent, not what they are. Last week, Jacob Kastrenakes, in his article for The Verge, discussed the precarious existence of NFTs. What happens is NFTs use links to direct you to where the art or its details are stored. And links can very well die. So, in simple words, you just bought a link to find what digitally exists somewhere on the distributed server, and from there, you hope; hope that your connection keeps pointing to your asset, that someone (reasonably the owner you paid) keeps maintaining the infrastructure so that you get to keep accessing your file.
The NFT system is based on the Ethereum blockchain.
This NFT interest burst ignited a significant rise in the coin prices by $ 400. The surge can very well be constituted to the well-calculated NFT market boosting offers. Some platforms offer beginners free surfing, but the actual growth is based on the price of gas, Ethereum. Yet, what justifies this marketing is the strong art market sheathing it. But of course, this sheath is liable to bubble dynamics.
Bubble is a somewhat tricky yet valuable concept.
To make the understanding part a bit easier, I suggest you imagine a bubble; a plain, simple, transparent drop. What do you see? Or, more importantly, NOT see? Hard to detect, this makes the concept tricky; their undetectability pulls many into the illusion that they aren’t even a thing. However, just because you missed it doesn’t mean everyone else won’t detect it either, and so it’s subject to what you find and when.
Now you have detected the bubble, what next? A water bubble will burst at some point. So, here comes the rational bubble theory, where people (like me) acknowledge the drop is natural. But the most common thought process that drives the majority of the bubble dynamics is that people, more often than not, even knowing that it’s a bubble, enter with the confidence that they’ll get in and out before it collapses. There also exists a theory by Goodnight and Green’s network stating they represent two distinct discourses happening simultaneously. That bubbles aren’t irrational, and they surpass the limited set of assumptions consisting of the drive to buy stocks. There are also traditional bubbles, but they are processes, steady, not sudden bursts. But how do bubbles partake in our daily life?
In a new bizarre and scarier sense,
Bubbles can be tricky because they can’t collapse. For example, hedge fund folks think they can stamp the GameStop to ruin. Sorry to burst your bubble, sir (pun intended), not happening. It’s the GME to the moon crew we’re talking about. Even when they take a step back, it’s to get a headstart. A significant part of the market today consists of copy-cats and robots, and reflective bubbles shine, if not brighter.
The fear of missing out (FOMO) is now an official investing strategy. From NFTs to meme stonks to whatever new is introduced to the world, we want an in on the loop and be updated by default. James K. Glassman and Kevin Hassett’s Dow 36,000 accounts the stock market to human beliefs, stating if people decided that stocks are risk-free, the economy would flourish in stocks, and warned, if you don’t dig in now, you’ll be left out in the market’s final rise. Ok! Firstly, the market might fail low, but it can also forget high. And secondly, stocks that do not have significant movement, since their prices are external force-dependent, say, for example, on a community of meme makers, cannot incorporate anything new.
The Ultimate Gold Rush of Gold Rushes:
What we are witnessing today is the gold rush of gold rushes. Everything can be owned, and even a tweet can be sold. This is a clear point of over-capitalization, causing a disarray in public, not grasping what is happening. Yet that disconnection, nothing making sense, the fear of not recognizing the opportunity when it was knocking on your door, is what’s fuelling this need, this ultimate gold rush.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
