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The question is whether anyone cares about the scarcity. I think the more complicated the item, the less it makes sense perhaps. The more utility in the item, t

The question is whether anyone cares about the scarcity. I think the more complicated the item, the less it makes sense perhaps. The more utility in the item, the less I care about a separate ID number associated to it, I would think. For example, let’s move away from pictures momentarily and instead think of lossless music files. You consume music more “actively” than an image, and a literally identical music file seems weirder to pay more for. Or perhaps a movie. “An original pressing” NFT movie that has the same content as the $5 version. To some extent it feels that the Napster revolution proved the opposite: people are willing to take a hit on quality for price, and I would have hoped once upon a time that the response would have been to go more physical. People like plastic, so include trinkets you can do things with when you sell a digital thing because the trinkets can’t be downloaded (until we figure out crazy 3D printing of arbitrary materials I guess). In some respects, blockchain currencies make the most sense precisely because they aren’t bound to some fictionally scarce “physical analogue” to remind you that it’s just a number. The currency says “the number has value, that is the one axiom you must believe”. An NFT muddies this by saying “the number has value BECAUSE it is tied to this unique thing that actually isn’t unique.” Edit: One added point: if the scarcity is “real” due to some outside constraint (a card that can be used in a game, and thus it’s not yet copyable asset that people are buying but the unique ability to use it), then the above does not apply and NFTs seem like a fine way to standardize a cheating proof way of handling this.

raghavtoshniwal 6y ago
> The more utility in the item, the less I care about a separate ID number associated to it I completed agreed to the point you were making and then I got reminded of sneakers. They are supposed to be of high utility and yet 'limited edition sneakers' command a high price and are never used (in fact they lose value on being used). I think other threads in the discussion point out the difference between the price people pay for 'owning' an artefact versus 'enjoying' an artefact. In the music case also, I can totally imagine a successful artist taking out limited NFTs on their music and their super fans buying it, trading it amongst themselves. Most people who want to 'enjoy' it won't care but I guess a case can be made for die-hard fans wanting to own it.
iamwil 6y ago
One way I as a creator can care about scarcity is it lets me build community with superfans. NFT holders of my work can have access to special events to meet me, or to see behind-the-scenes, or get other artifacts, like original sketches. The utility of the enjoyment of my art is for regular fans. The utility of the ownership of my art is for super fans. And the value of superfans to me as a creator is to build long life-time value of customers, ready audience for my future work, an effective cheap distribution channel. If I as a superfan has a creator that honors these NFTs, then I too will care about the scarcity--not of the digital artifact that lets me enjoy the work (the image), but of the digital artifact that lets me participate as a superfan (the NFT).
- tolmasky 6y ago
  Yeah absolutely — you are creating truly scarce value in that case through an external means (just like an in-game card that lets you do things in the game others can’t do, vs.- “pure collectible” that does something: I tweeted about this here: https://twitter.com/tolmasky/status/1365908735542005762 https://twitter.com/tolmasky/status/1365908735542005762 ) That being said, it will be interesting to see how creators react to these tokens being resold (which is an essential aspect of this). That is to say, in the model you are describing you are taking on a long term relationship in order to demonstrate the scarcity, which is different than a one-time sale of unique piece of art. You will thus take on the problem of scalpers and the realization that many of the superfans you are serving got access to your future rewards through paying a third party much more than you got for the initial sale of the token — which is of course nothing new, this happens with art resale too, it’s just less repeatedly in your face as you provide these benefits over time.

raghavtoshniwal 6y ago

> The more utility in the item, the less I care about a separate ID number associated to it I completed agreed to the point you were making and then I got reminded of sneakers. They are supposed to be of high utility and yet 'limited edition sneakers' command a high price and are never used (in fact they lose value on being used). I think other threads in the discussion point out the difference between the price people pay for 'owning' an artefact versus 'enjoying' an artefact. In the music case also, I can totally imagine a successful artist taking out limited NFTs on their music and their super fans buying it, trading it amongst themselves. Most people who want to 'enjoy' it won't care but I guess a case can be made for die-hard fans wanting to own it.

iamwil 6y ago

One way I as a creator can care about scarcity is it lets me build community with superfans. NFT holders of my work can have access to special events to meet me, or to see behind-the-scenes, or get other artifacts, like original sketches. The utility of the enjoyment of my art is for regular fans. The utility of the ownership of my art is for super fans. And the value of superfans to me as a creator is to build long life-time value of customers, ready audience for my future work, an effective cheap distribution channel. If I as a superfan has a creator that honors these NFTs, then I too will care about the scarcity--not of the digital artifact that lets me enjoy the work (the image), but of the digital artifact that lets me participate as a superfan (the NFT).

tolmasky 6y ago
Yeah absolutely — you are creating truly scarce value in that case through an external means (just like an in-game card that lets you do things in the game others can’t do, vs.- “pure collectible” that does something: I tweeted about this here: https://twitter.com/tolmasky/status/1365908735542005762 https://twitter.com/tolmasky/status/1365908735542005762 ) That being said, it will be interesting to see how creators react to these tokens being resold (which is an essential aspect of this). That is to say, in the model you are describing you are taking on a long term relationship in order to demonstrate the scarcity, which is different than a one-time sale of unique piece of art. You will thus take on the problem of scalpers and the realization that many of the superfans you are serving got access to your future rewards through paying a third party much more than you got for the initial sale of the token — which is of course nothing new, this happens with art resale too, it’s just less repeatedly in your face as you provide these benefits over time.