In the past days, we introduced you to the method of making and selling works in NFT format. A non-fungible token or NFT is a digital asset on the blockchain platform that has a unique identifier. This unique blockchain identifier can be assigned to digital assets such as video games, artwork, even music and photos and memes.
NFT is becoming a bipolar. Some people are happy with the idea of owning the image of the famous Dog Coin. While some think about the darker aspects that may be behind this virtual market and will be revealed later.
There’s a lot to love about NFTs, but there are risks that can’t be ignored. To get familiar with these risks, follow us in the rest of this article:
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You may be scammed
In general, e-commerce has always been a bit like gambling. This is why well-known sellers like Amazon have reached a high level of power. If we ourselves do not pick the products we need from the store shelves, how can we trust the business we do with the other party?
Without a name or face to trust, the Internet truly becomes a version of the Wild West. So, there are many ways to scam you when you buy an NFT:
fake market
Counterfeit seller (usually posing as the real artist and selling copied works at a lower price than the originals)
Unverified sellers
All of the above are among the concerns that buyers will have, but what about investors? If you are an investor, you should still be aware of scams, especially fake projects and untrustworthy con artists trying to get rich very quickly, so you don’t invest in the wrong option.
Avoid anything that looks suspiciously cheap or too good. But like any other area in e-commerce, capitalism comes first and you always have to find a way to stay ahead of the scammers.
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NFT is not environmentally friendly
Cryptocurrencies have brought many changes to our world, but one problem that no one can deny is that this industry clearly has a negative impact on our environment. The computers that create the blockchain data are working continuously and at very high capacity.
Some time ago, a study was conducted to determine the exact amount of energy consumption in the proof of work method. The result of this research determined that the mining of cryptocurrencies harms the environment more than the mining of copper, gold and platinum. Also, between January 2016 and June 2018, cryptocurrency mining alone released between 3 million and 15 million tons of carbon dioxide, even in the critical conditions of today’s planet!
Proponents of environmental protection always criticize various industries, especially heavy industries, because of such negative effects on the environment, and cryptocurrency mining should certainly not be considered an exception to this rule.
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NFT is not art and does not support the artist!
Part of the success of the NFT world is simply due to the good fortune of the owners. For example, the owner of the famous dog known as Dogecoin Icon probably never thought that a random photo of his dog would be worth more than $4 million in 2021. Of course, some may say in defense of NFT that such a thing now exists in the art world, which should not be the case.
There has always been a debate about popular art and original art, and many believe that what many artists are trying to present to the audience as a new style and avant-garde work is nothing but an absurd and worthless work. But who has the authority to grant the title of “original art” or “real art” to a work?
In ideal conditions, those who work with authenticity and from the heart can be called authentic artists; It means the same art for art. But in reality, the one who can afford to buy the artworks is the final decision maker. The concept of supply and demand is very simple; if an artist sees that creating a superficial and stupid work is the answer to making a decent income, he will usually stop trying to search beyond the desires and imaginations of the buyers of his works.
NFT can encourage committed, honest and enthusiastic artists to present their best to the world. But instead, we see digital cyberpunk cards being traded!
If these people who have the power to decide decide to invest in Nyan Cat NFT or any other superficial artefact, the future will never have the opportunity to properly recognize and understand the true artists of today.
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You will never actually own an NFT
Has the meaning of value changed? If millions of people enjoy an image, is it as valuable as a traditional work?
A painting or a sculpture can belong to only one collector and the rest of the people can finally have a photo of that work. In the NFT world, you pay for the right to own a work, but at the same time, millions of other people can have that photo, piece of music, game, digital art, etc. for free.
There is a running joke: Why should I buy the Mona Lisa for $860 million when I can see a picture of it for free on Wikipedia?
In fact, you don’t need to own a work to enjoy it. But does this mean theft? If so, who are we stealing from? From the owner of the work (the one who bought the work) or from the one who created it?
Of course, it must be said that just because NFT is not very serious in the field of creative content, it cannot be ignored; Because artists, investors and people of technology are all part of this field.
The economy is not like a physical engine; This important factor of human social life will be based on what people can buy and what they look for after satisfying their basic needs. It is we who determine the value and they have always said: “With great power comes great responsibility”.
In economics, people cannot be told what to do, they choose the path that is least difficult and take another step forward with every amount they earn or spend. Our wealth can create the wealth of others and those who acquire wealth can shape the future (both good and bad).
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