I 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

I 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.