To put it simply, NFTs are assets whose ownership is corroborated by a blockchain’s automated digital ledger, providing irrefutable proof, through a decentralized platform, of the payments made for a specific asset and all of their relevant information.
Thanks to blockchain technology, all manner of things, from intellectual property and financial assets to digital collectible images and memes, have been registered and traded as NFTs.
However, the hype of NFTs has been accompanied by equal amounts of backlash coming from people who believe they’re useless at best and scams at worst, with no shortage of content in both traditional media and social spaces criticizing NFTs and those participating in its market.
Here, we will explain to you exactly why some people hate NFTs, where the most common criticism toward NFTs comes from, and whether it’s warranted.
Lack of Understanding
Part of the reason why NFTs tend to get such a bad rap among mainstream media and circles comes simply from a lack of understanding about what they are, what they can be used for, and where they gain their value.
In a large part of traditional media and social media, NFTs have been promoted as overpriced images paid for by wealthy people to speculate or boast.
While this might’ve on some occasions been the case, this type of image doesn’t do justice to NFTs, as it doesn’t touch on what they really are and what they can be used for.
Thanks to their ability to decentralize the verification of transactions in a secure manner, NFTs and blockchain technologies can be employed to increase the transparency of financial systems, improve interconnectivity in the world and give creators a newfound power to monetize their creations.
To no one is it a secret that some NFTs can reach exorbitant high prices. Even today, after the market has seen some steep fluctuations, the floor price for popular collections like the Bored Ape Yach Club and Cryptopunk remains over U$100,000.
Because these types of collections are the most popular and get the most attention from mainstream media, they also tend to be the first ones that people get acquainted to when they start to learn about NFTs.
Thus, the first impression that most people get from NFTs is that they’re highly expensive and don’t offer value beyond bragging rights for the rich.
Although this isn’t really the case when one looks at the broader picture, on the surface, it looks like NFTs are exclusive and elitist, which is something that tends to carry negative connotations.
When properly employed, NFTs and blockchain technologies can be used for incredible things, from giving creators greater power over their creation and how they monetize it to possible advancements in healthcare and law, they are new technologies, and thus, often misused.
While there are many startup projects and companies that aim to innovate using NFTs others, unfortunately, see the phenomenon as a gold rush where they can earn a quick buck.
Because of this, there is the notion that NFTs are nothing but an overblown speculative bubble inflated by pop culture and crypto mania, where the assets have no inherent value.
This isn’t helped by the fact that there are cases of illegal actions done through NFTs, such as wash trading and Ponzi schemes that, despite not being relatively uncommon in the world of NFTs compared to other types of financial assets, tend to get particular media attention.
Oftentimes, these types of negative misuses of NFTs and other blockchain technologies in sketchy or fraudulent manners are the only ones that people outside of the space are exposed to, as they tend to be more scandalous, generating more clicks and engagement.
Is The Hate Against NFTs Warranted?
New technologies throughout history have always had their opponents. Whether it’s people who see them as a threat to their businesses or their way of life, or those who simply believe that the technology will not deliver its promises, innovation is almost always met with backlash.
The same thing occurs with NFTs and blockchain. Because these technologies are young and their potential applications aren’t obvious at a first glance, people who aren’t acquainted with them may come under the impression that they are some sort of fad at best and a scam at worst.
Upon looking at the broad picture, this couldn’t be further from the truth. While the existence of frauds within the NFT space is undeniable, these cases are part of a loud minority among many legitimate projects made to add real value to people’s lives.
Why NFTs Matter
NFT innovations can go far beyond digital art, or even financial assets. They can span a wide range of industries and markets, including AI, sciences, healthcare, laws, real estate, and much more. These innovations are going to be prominent as the internet evolves into Web 3.0.
While there is fair and necessary criticism to be made towards NFTs, blockchain technologies, and the ways in which they’re being employed, hate against them is not just unwarranted but counterproductive, as it can potentially get in the way of genuine innovation.
Many experts and creators are discussing and developing new exciting projects to achieve this innovation through NFTs.
You can meet these experts along with many industry enthusiasts and creators, and learn about the latest and most exciting NFT projects at blockchain conferences like Expoverse, made to discuss the future of blockchain and introduce newcomers into the space.