The chief strategy officer of digital asset manager CoinShares says that the surging non-fungible token (NFT) market is not a bubble.
In a new tweetstorm, Meltem Demirors points to the scarcity of various NFT projects and Bitcoin as a potential key factor motivating investors.
“Are NFTs a bubble? No. Wealth is a bubble…
For the first time in history, more than 1% of adults around the world are millionaires – that’s 56 million millionaires. Their total net worth stands at $158 trillion. There are 21 million Bitcoin. There are 10,000 Punks. There are 100 rocks.”
Demirors says that NFTs are status symbols for a new class of consumers.
She also says that NFTs can be fractionalized, are capable of shared ownership and can be used as collateral in on-chain financial markets, unlike traditional luxury goods such as bags, watches and shoes.
“The global market for luxury goods i.e. conspicuous spending is absolutely massive. NFTs are digital flex/status symbol for a new class of consumers, but unlike the traditional markets of wealth and status, they are open to anyone, anywhere with verifiable scarcity.”
Demirors also says that spending millions on NFTs is not necessarily a strange idea.
“For those who say spending millions on JPEGs is dumb and we should be solving world hunger, please give the folks on the trad art collector list a call first. People are spending $200 million on blobs of paint. How is spending $2 million on blobs of pixels any less noble?”
In 2020, NFT marketplace OpenSea processed only $21 million in transaction volume, but on August 8th the platform smashed records with $78.8 million in daily transaction volume.
Amid the explosive growth of the industry, Demirors says she chooses to embrace NFTs.
“So there are three options
1: do nothing
2: embrace NFTs, dive in, and attempt to learn and understand…
3: mock NFTs as a bubble and nothing more than elaborate money laundering, just as you mocked bitcoin 5 years ago.
I choose 2.”
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Featured Image: Shutterstock/GavrBY/Damir Khabirov
The chief technique officer of digital asset supervisor CoinShares says that the surging non-fungible token (NFT) market isn’t a bubble.
In a brand new tweetstorm, Meltem Demirors points to the shortage of varied NFT tasks and Bitcoin as a possible key issue motivating buyers.
“Are NFTs a bubble? No. Wealth is a bubble…
For the primary time in historical past, greater than 1% of adults all over the world are millionaires – that’s 56 million millionaires. Their whole internet value stands at $158 trillion. There are 21 million Bitcoin. There are 10,000 Punks. There are 100 rocks.”
Demirors says that NFTs are standing symbols for a brand new class of customers.
She additionally says that NFTs might be fractionalized, are able to shared possession and can be utilized as collateral in on-chain monetary markets, in contrast to conventional luxurious items resembling baggage, watches and sneakers.
“The worldwide marketplace for luxurious items i.e. conspicuous spending is totally huge. NFTs are digital flex/standing image for a brand new class of customers, however in contrast to the standard markets of wealth and standing, they’re open to anybody, wherever with verifiable shortage.”
Demirors additionally says that spending hundreds of thousands on NFTs isn’t essentially an odd concept.
“For many who say spending hundreds of thousands on JPEGs is dumb and we ought to be fixing world starvation, please give the oldsters on the trad artwork collector listing a name first. Persons are spending $200 million on blobs of paint. How is spending $2 million on blobs of pixels any much less noble?”
In 2020, NFT market OpenSea processed solely $21 million in transaction quantity, however on August eighth the platform smashed data with $78.8 million in each day transaction quantity.
Amid the explosive progress of the trade, Demirors says she chooses to embrace NFTs.
“So there are three choices
1: do nothing
2: embrace NFTs, dive in, and try and be taught and perceive…
3: mock NFTs as a bubble and nothing greater than elaborate cash laundering, simply as you mocked bitcoin 5 years in the past.
I select 2.”
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Disclaimer: Opinions expressed at The Every day Hodl usually are not funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your personal threat, and any loses it’s possible you’ll incur are your duty. The Every day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Every day Hodl an funding advisor. Please observe that The Every day Hodl participates in affiliate marketing online.
Featured Picture: Shutterstock/GavrBY/Damir Khabirov