Another day another topic to be putting more light on. Non-fungible items or in a digital world Non-fungible tokens (NFT). You all heard about this and every conference adding now artwork auctions for NFT. But what is it all about?
Let us start from the beginning; a non-fungible item is something like this:
– Intellectual Property
– Art (if it is acknowledged as limited and not moveable) means it has a high value
– A list of prices for cars that have bought as a collectible and do not move to secure the value
– Everything a high demand and interest is on and which is not easy to get
– An asset which you can’t move
– UNESCO heritage
And more of this. The ownership in all of this is now a necessary item, but like a good guy I know (named Don Lovett) was saying, “where and how ownership records are stored is of less interest if you have no disposable income,” which leads me to the question what is the value of intellectual property?
At the moment, we create so-called “NFT,” but in reality, they are just pretending to be. So as long no one sees the value in this work, it is like an artist’s work. We see millions of that, but only a few will be recognized and valued by 1000s of dollars. Making hype about something is a movement. You have great Twitter followership; then, everyone cries for an NFT from you. Like from a Rockstar. But if the fame fades, nothing is left behind.
So many artworks and music or other items become iconic after the founder’s death because access to this work is limited now. And this art can’t be outdated because the founder has passed away. So the generations looking back to our times now define whether kill is something for eternity or just a piece of time. We all use smiley today in our communication. In the 80s, it described the lifestyle of a whole generation, putting them on clothes and covers of music. Those smileys have labeled the entire so-called “Acid House” music movement. To make an NFT means it is an Iconic sign and high valuable? No, it’s just an item of a mass-market—the only symbol for our generation. So if, for example, Andy Warhol would have made a smiley iconic, then it is worth doing an NFT about.
In the future, NFT will become more adaptable for patents and the examples mentioned above. This will be started through the digital transformation process creating a digital economy.
Is the NFT a kind of storage? I do not think so. It is more digital right management of access to this item. Without a physical or online existing thing which the NFT reference to the NFT is worthless. NFT are copies of objects you can’t share usually. So an NFT provides you with the possibility to transfer ownership and sell without obstacles your interest by selling your NFT, for example. So the hype we see has been only in the beginning. Now, we got millions of Arts called NFT. And only a few will become high value. This will dry out sooner or later in the NFT markets. It’s like you walking through a gallery. You see thousands of pieces in your life, but what is the one who has value for you.
Moreover, mostly a picture is only sold because one person sees value. Others are on auctions because we make them believe in this piece of work. Who takes care of Mona Lisa if a future generation doesn’t see value? That’s how Oldtimers cars have often be delisted. Without demand, the value is not given.
NFT will sooner or later work in the intention they have been given for.
Written by : Prof. (Dr.) h. c. Joerg Molt