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From scanning this, it sounds like the author is specifically talking about sports trading cards, most characterized by baseball cards. This market certainly w
by cletus 5y ago
From scanning this, it sounds like the author is specifically talking about sports trading cards, most characterized by baseball cards.
This market certainly went crazy price-wise but then, as the author pointed out, tanked. It basically tanked because everyone started collecting the cards. Like any collectible market, it mainly took off to begin with because no one was collecting these things and keeping them in mint condition. The realization of that then created oversupply.
I can't speak much for that market but in the past year Pokemon in particular has exploded, to the point where the the ratings companies where so inundated with submissions that they had to stop accepting them.
The Pokemon market seems to have cooled but prices for mint condition first edition cards still seem to be pretty high. It's impossible to predict where this market will go just like any collectible market because it's so driven by market sentiment.
- nly 5y agoNFTs are collectables and subject to the same trajectory.
- fny 5y agoI don't understand who can afford these with gas prices so high. NFTs aren't some typical trading card market. I think it's mostly tax evasion and some wealth posturing. You create an NFT sell it to yourself, the price tanks you deduct it from your taxes and then sit on a pile of USD coin in another wallet that no one knows about.
- ProjectArcturis 5y agoI doubt there is any jurisdiction in which one could deduct losses on a collectible of any kind, let alone an NFT, let alone unrealized losses. The real use is, you have $X dollars that you acquired by doing crimes. You want to buy a yacht with that money, but you don't want the authorities asking questions. So you sell an NFT to yourself, attribute your crime money to getting lucky in crypto, pay taxes on it, and poof! You're on a boat.
- capableweb 5y ago> It's impossible to predict where this market will go just like any collectible market because it's so driven by market sentiment. As someone who knows little about trading cards or "markets" in general I guess, how is this different than any other market? Seems like everything is driven by market sentiment, even things like toilet paper from time to time.
- okl 5y agoYou don't use up trading cards like you do toilet paper. Neither are trading cards continuously produced like toilet paper.
- capableweb 5y agoSure, that was just one (tongue-in-cheek) example. What about stocks?
- GoatOfAplomb 5y agoStocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
- capableweb 5y ago> Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Otherwise you do require others to buy the stock when you sell it. > Trading cards (and cryptocurrencies) are not like that Don't know enough about trading cards to say that you're incorrect, but you're definitely wrong about cryptocurrencies. You can do various things to earn more without loosing your current amount, from staking (Polkadot), loaning (Compound) to getting rewarded for providing liquidity (Uniswap) or for doing nothing at all (Algorand).