Why NFTs Are Useless: Here’s What We Have To Say

July 29, 2022February 2, 2023 admin

These days, NFTs are the latest rising technology, yet some people feel that NFTs are pointless. You asked why NFTs are useless, so let me explain. The good news is that we will discuss it here in this post.

Why Are NFTs Useless?

If you were using the internet in 2021, you most likely came across a discussion about NFTs at some point. It is pretty unlikely that they were praising the benefits of NFTs either. Suppose you aren’t a tech billionaire, cryptocurrency investor, or experimental digital artist. In that case, chances are you believe that non-fungible tokens (NFTs) are another extravagant waste of money for the rich. That is right, but the issue in practice is not relatively as straightforward as you make it seem.

As a result, we’ll argue in favor of NFTs and explain why they may not be as problematic as you’ve lived led to believe in this piece.

Why People Hate NFTs: The Environment

The argument against non-fungible tokens is straightforward: they aren’t things; they are files on a computer intended to be artificially scarce to earn money for businesses and the wealthy elite by providing them with something else to exert their power over other people with.

NFTs also harm the environment because of the significant amounts of electricity needed for production, distribution, and maintenance. It is crucial to remember that electricity does not always come from a renewable source; as a development, it is conceivable to anticipate that NFTs will confront the same challenge as any other business dependent on fossil fuels.

These are valid concerns and point to problems that exist in the actual world; yet, there is more to the story than criticism. For example, the circumstances in which NFTs could expedite the earth’s warming pace. This would be the case if all NFTs used the same electricity and, more importantly if the electricity required to power NFTs came from fossil fuels.

On the other hand, this is not the situation. Not all non-fiat currencies (or cryptocurrencies or blockchains) are created equal. The power required to produce and maintain some non-fiat coins may vary significantly from method to method. In addition, not all of the electricity consumed by NFTs currently comes from the combustion of fossil fuels. In addition, as the price of other forms of energy, such as solar electricity, continues to drop, the percentage of energy obtained from fossil fuels to power NFTs in the future will decrease.

In addition, technologies such as bitcoin, blockchain, and NFT are still in their infant stages. The components we used to power this technology are not as efficient as they may be and will almost certainly become in the future. Suppose the goal of these kinds of technologies is to generate money. In that case, everyone who relies on them will live compelled to develop methods and techniques with the lowest possible overhead regarding the amount of electricity it consumes each month. Not to mention the potential disasters that may occur with public relations.

Does this imply that some NFTs, in their current iterations, do not threaten the natural environment? No way, not even close. However, this is not to suggest that the debate is restricted to the oversimplified idea that “NFTs are bad for the environment.”

Why NFTs Are Useless: They Aren’t Real.

Even though many individuals are concerned about the environment, many continue to use cars powered by petroleum. Many people’s primary concern is not with the amount of power necessary to manufacture an NFT but rather with defining what an NFT is and the functions that it carries out.

An NFT is not a real object, and even if you buy an NFT of some digital artwork, you will still be able to see that artwork on other websites even after you’ve purchased the NFT. Therefore, artificial scarcity and a price tag that is frequently prohibitively expensive, all for what is essentially a digital certificate of ownership over something that you do not physically possess, are a cause of existential anxiety for many people.

The fact that digital ownership of media products has become more popular over the last decade may be upsetting to some people, but unfortunately, this is the case. There is no question about it: if you’ve ever rented a movie online, paid for music you downloaded, or bought a video game digitally, you’ve experienced deplorable experiences on a fundamental level.

Why You Should Either Like NFTs and Microtransactions or Hate Both

There is no actual commodity to be purchased when we buy digital goods today, such as skin from a game’s microtransaction shop or anything else. We have minimal rights to the data we purchase. This is only one example of how NFT artworks and movies may be seen free of charge by searching the internet.

What is the distinction between purchasing an NFT video game skin and simply purchasing a skin?? Almost speaking, there is zero to be worried about. The NFT, on the other hand, makes a lot more sense, provided that everything else is the same. Because of the lack of adequate documentation showing that you’ve acquired and owned a skin after you’ve purchased and gotten tired of it, you will likely be unable to resell it.

It is easy to move NFTs from one game to the next, particularly within the scope of a single publisher, and they have real-world value and may live transfer. NFTs are digital records of purchase. A price increase is possible for some of these features.

For $15, you can obtain a skin with a unique NFT version. Even if the price rise thrice may seem excessive, if you become tired of the item and decide to resell it after it is no longer for sale, you might get the same or even more.

Gamers have lived subjected to years of microtransactions, so it’s only natural for developers and publishers to want to make NFTs as bad as they can be. Even said, the technology itself has the potential to enhance the present microtransaction business model in several ways.

Another thing to recognize is that NFTs aren’t the solution if you’re opposed to microtransactions and feel they’re predatory schemes to replace video game content with an endless series of paywalls. Instead of weakening this monetization model, they strengthen it by giving the appearance of authenticity and legitimacy to microtransactions while simultaneously giving publishers the possibility to make billions from microtransactions.