Not convinced by NFTs

Not convinced by NFTs

Around one year ago I heard of NFTs for the first time. NFT stands for Non-Fungible Tokens and is a major trend in the world of selling art. However the term non-fungible token isn't self-explaining. It stands for a unique digital identifier that cannot be copied and is recorded in a blockchain that is used to certify authenticity and ownership.


In other words

An NFT is a unique token on a cryptocurrency blockchain. NFTs are designed to give you something that can't be copied: ownership of the work. An NFT therefore is a proof of ownership of a token — not an artwork.

Whenever something is so difficult, you don't understand it right away and when people around you make buzz that this is the next big thing, this rings alarm bells for me.

Cryptocurrency markets work in a way which reminds of pyramid schemes. For existing NFT collectors to profit, new buyers have to be drawn into the market.

Secretly, many people hope for big money. Get rich quick just by doing something at the right time. You hear stories of people who bought a bitcoin years ago and are now millionaires. It would be great if you could just be there. Tempting, isn't it?

I've thought a lot about NFTs and took a whole year to evaluate the topic. And then decided to go with my gut feeling.

I'm not participating!

In my view, this is all a hoax — not really tangible. And I don't want to fool my customers. Period.

I can't deny what image the word fungible creates in my brain

Messy markets

What makes NFTs messy is that it's being treated like they are the future of art collecting. It is the NFT ecosystem that makes this a complete disaster. Unmanageable and extremely fast-growing marketplaces without clearly understandable structures, e.g. suddenly suspended trading.

There are large amounts of image theft and money laundering as well as market manipulation and tax evasion. Is this really something we strive for as a society?

To be honest, I fear, NFTs are a speculative bubble inflated by crypto mania.


Regarding cryptocurrencies there's also the ecological aspect and environmentalist ask Do you want to destroy the planet?

Apparently 1 NFT uses as much power as a whole continent playing Nintendo Switch for a 1,000 years.

I read this on a forum while doing research for this article and would consider it a doubtful source. Yet it sounded so absurd and a bit funny that I wanted to quote it.

Yet the technical dependency of crypto currencies and the power consumption of each transfer should be taken in account when discussing NFTs. This is undoubtedly a fact.

You decide

I don't want to judge NFTs. There are certainly great NFTs and niches where it works and makes both buyers and sellers happy. If you want to invest or sell tokens, go for it. I'll be the last one to try and sell you my opinion.

For myself, however, I have made the decision that I do not want to participate in this digital and speculative market.

Art is close to my heart and I don't have to follow every trend.

If someone likes art and wants to support the artist, they can buy a small print. Everyone wins. Nothing like that happens with NFTs.