Non-fungible tokens are currently a major topic of discussion in the cryptocurrency space– Creators and collectors jump on the train of such tokens.
Charlie Lee, the inventor of Litecoin (LTC), does not find the excitement lasting, however. In one Tweet Monday, Lee said that unlike “real art”, NFTs have “no cost”.
Even so, I am ready to prove myself wrong. I created a unique NFT with my profile picture. It didn’t cost me anything (well, except for the ridiculous ETH gas fee) and no effort. Prove I’m wrong and show me this has value: https://t.co/ucmu8KB1Us
– Charlie Lee [LTC⚡] (@SatoshiLite) February 15, 2021
According to Lee Real world artists are limited by time and effort when comparing this limitation to a proof of work or proof of work. For Lee, This restriction creates scarcity and thus value for works of art by famous artists.
“NFTs, on the other hand, create artificial scarcity,” tweeted Lee, adding: “Because of the near-zero cost of creating another NFT, the market will eventually be flooded with NFTs from artists trying to capitalize on this fad. Supply will exceed demand and prices will eventually collapse. “.
Lee’s comments are a regular criticism of NFTs. However, there are arguments to justify that the art scene – both real and digital – is inundated with reproductions. Yet, The value of the work often rests with the artist, and collectors look to the creator of the work to distinguish it from other copied pieces.
Actually, The ability to cryptographically sign works of art is another benefit attributed to NFTs as they allow artists to include metadata, links to files, and other elements required for copyright.
With NFTs, scarcity becomes an expression of consensusBecause of this, CryptoPunk, an extremely rare alien, was sold for 605 ETH in January. Although it would be possible to recreate this rarity, it would not be part of the 2017 Larva Labs collection.
Hashmasks, another NFT collection, created 16,384 “cards” in the first four days that sold more than $ 10 million.as previously reported by Cointelegraph.
Lee’s criticism seems to limit NFTs to art as well, rather than the broader collectibles scene with items like in-game assets and digital lands.. In early February, nine digital lots of the Lunacia virtual realm were sold for approximately $ 1.5 million.
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