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One could also argue that if the developers did that, the market value of the digital item in question would drop. The value that the buyer receives is grounded
by jbergqvist 5y ago
One could also argue that if the developers did that, the market value of the digital item in question would drop. The value that the buyer receives is grounded in the large time investment required to acquire the item in the game. Even though it is completely artificial, it makes the item more scarce and therefore more desirable to other players. I totally agree that the fact that this power is in the hands of the developers, though, makes these types of NFTs far from the decentralized digital goods they are claimed to be as pointed out by the author.
- xg15 5y agoThis implies that anything that is scarce or requires labour to obtain automatically becomes desirable and rises in value.
- jmagoon 5y agoFaux scarcity is a key concept in the crypto ecosystem.
- chii 5y agoscarcity is a necessary, but insufficient condition for desirability.
- xg15 5y agoI think it's not even necessary. Otherwise, rights holders wouldn't have to put in so much effort to hold up the other form of artificial scarcity, DRM. Free software wouldn't exist.