Re:NFTs means the future value of art is zero
by mech987 on Thursday January 20, 2022 @11:30AM
(#30011079)
>But it only takes one person to decide that they want to sell their copy for free - and the floor becomes zero
That's not quite right. If we plot out all the bids and asks, the price floor only becomes zero if the seller with a $0 ask has enough volume to flood the market. Otherwise
If the Red Hot Chili Peppers decide to release only 300,000 copies of an NFT album, then the limited distribution would keep the price floor above zero. Even without a limited distribution there's a pretty good chance that most people wouldn't part with their copy unless they got enough money for the trouble.
That's not quite right. If we plot out all the bids and asks, the price floor only becomes zero if the seller with a $0 ask has enough volume to flood the market. Otherwise
If the Red Hot Chili Peppers decide to release only 300,000 copies of an NFT album, then the limited distribution would keep the price floor above zero. Even without a limited distribution there's a pretty good chance that most people wouldn't part with their copy unless they got enough money for the trouble.