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Maybe the simplest way to explain NFTs is to compare them to casino chips: "if you have a casino chip and that casino goes out of business, your chip will most

Maybe the simplest way to explain NFTs is to compare them to casino chips: "if you have a casino chip and that casino goes out of business, your chip will most likely be worthless" Say you take 10 grand to Bob's Casino in Las Vegas, buy chips and turn them into 100 grand at blackjack. You put the chips in your bag and go home to sleep because you're pretty drunk. Bob's Casino burns down overnight and Bob announces it he now bankrupt and going out of business. Your 100 grand in chips are now worthless. The top answer for "are casino chips legal tender?" on Google is Because casino chips are not legal tender, they are not legally transferable. That doesn't mean some people don't try to exchange them for cash or chips at rival casinos. Although the practice was once popular in Las Vegas, the government stepped in to prevent money laundering and counterfeiting. The U.S. dollar is the global reserve currency because it is backed by the full faith and credit of the U.S. Government and people have confidence the U.S. will last. Bob's Casino chips are back by Bob. NFT's are backed by who?

andy800 5y ago
Who is the Mona Lisa "backed by"?
poetically 5y ago
Comparison to casinos makes sense. Currently cryptocurrencies are mostly used for speculation (basically gambling) and money laundering. There is no real economic activity happening on blockchains.
- Osiris 5y ago
  Define "real economic behavior". I don't see it as any different than buying and selling stock, unless you also consider that to not be real economic behavior. There's also loans and interest earning activities.
  - poetically 5y ago
    Speculation is not real economic activity. There are no actual goods produced and exchanged in the process.
- Xorakios 5y ago
  According to the current IRS definition of cryptocurrencies, that people filing taxes have to "check off," frequent flier miles, grocery store coupons, and even the venerable blue chip stamp books, are crypto. I understand and agree that a lot of cryptoscams dominate headlines, but there, but most money laundering, terrorist and drug financing worldwide is in USD $100 bills. Crypto is a rounding error.
  - poetically 5y ago
    As the de facto exchange currency of the world I agree that dollars finance crimes.

andy800 5y ago

Who is the Mona Lisa "backed by"?

poetically 5y ago

Comparison to casinos makes sense. Currently cryptocurrencies are mostly used for speculation (basically gambling) and money laundering. There is no real economic activity happening on blockchains.

Osiris 5y ago
Define "real economic behavior". I don't see it as any different than buying and selling stock, unless you also consider that to not be real economic behavior. There's also loans and interest earning activities.
- poetically 5y ago
  Speculation is not real economic activity. There are no actual goods produced and exchanged in the process.
Xorakios 5y ago
According to the current IRS definition of cryptocurrencies, that people filing taxes have to "check off," frequent flier miles, grocery store coupons, and even the venerable blue chip stamp books, are crypto. I understand and agree that a lot of cryptoscams dominate headlines, but there, but most money laundering, terrorist and drug financing worldwide is in USD $100 bills. Crypto is a rounding error.
- poetically 5y ago
  As the de facto exchange currency of the world I agree that dollars finance crimes.