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I'm no fan of NFT (non-fungible tokens) crypto and do not now, never have, never intend to own any, but, and maybe part of Web3, am guessing at some useful purp
by graycat 5y ago
I'm no fan of NFT (non-fungible tokens) crypto and do not now, never have, never intend to own any, but, and maybe part of Web3, am guessing at some useful purpose -- a convenient, low overhead, way to move many small amounts of money to pay for Internet usage.
E.g., Sam runs a Web site and wants to charge each user some small amount, say, $0.001 up to $0.10, including users in foreign countries, for each visit. Sam is eager to let his users pay with some major NFT.
Joe wants to use Sam's site and other sites with such a charging technique so buys in whatever fiat currency his country uses, say, $10.00 worth of some NFT. Then Joe uses Sam's site and pays with some NFT money. That NFT tokens can be divided into many parts is crucial here.
Once a day Sam converts all his NFT revenue to dollars (or whatever fiat currency is used in his country).
So, net, the money flow is from Joe's fiat money to $10.00 WORTH of some NFT to Sam's revenue in NFT to Sam's revenue in his fiat money.
Point 1: The NFT is held by Joe and Sam for only a short time and is used only as a convenient way to move many small amounts of money.
Point 2: Neither Joe nor Sam cares what each whole token of the NFT is worth.
Point 3: Investors who want to speculate on the long term value of a NFT tokens have risks from "unknown unknowns".
Point 4: If each of 1 billion people do what Joe does, hold nearly all that NFT, and on average hold only $10.00 worth, then we have an estimate of the maximum the investors can make.
- drdeca 5y agoThis seems to be, disregarding the entire meaning of "non-fungible" ? NFT doesn't mean "token". If you just mean "token", say "token"? Unless you mean like, "tokens which represent a fractional share of a particular NFT" ? But why would you use this as the thing to denominate payment in? If Joe has $5 worth of something, and Carl has another $5 worth of the same thing, and outcomes are equivalent if they swap what they have, then, the thing they have is fungible.
- graycat 5y agoThanks for the lessons! I'm a total novice in the world of NFT (Google says that abbreviates "non-fungible token"). You are way ahead of me. I'm such a novice that I don't yet even know how to use the words! I don't yet fully understand your lessons! Maybe roughly I have the scenario of Joe, Sam, and the long term investors correct.
- yyyk 5y ago>a convenient, low overhead, way to move many small amounts of money to pay for Internet usage. AKA digital currency. For this we can simply use a digital currency (crypto or otherwise). NFT is irrelevant here, an extra unnecessary complication when the same thing could have done with the ETH chain it's already based on, or a new side-chain or many other methods.
- graycat 5y agoThanks!