99% of NFTs are worthless, here's why

NFTs, the latest supercharged FOMO product, to come out of the blockchain ecosystem and it it’s making a lot of people, very rich. Well, to be more precise, it’s making a lot of scammers, very rich, because, unless you got in early, on Cryptopunks or Bored Apes, the chances of hitting it big in the NFT space, are next to none and most have seen their Ethereum, literally go up in smoke.

NFT rug pulls, are no longer, isolated incident, it’s become pretty much the standard, in today’s market and there’s a good reason for this. You see, some NFTs will indeed, sell for an unthinkable, amount of money like Beeple’s Everyday NFT, that sold for $69 million dollars. This sale was literally, the NFT hallelujah and it kicked off a mass creation and buying of every possible NFT project, imaginable.

Right now, people are just panic buying every NFT, while at the same time, anyone with an internet connection can mint an NFT or have a team do it for you and put your name on it, just like po@%star Lana Rhoades did. She ran away with over $1.500.000USD, from a NFT project that is now pretty much worthless and the buyers of these types of projects, should really ask themselves, what kind of long term value, was a generic po**star, ever going to bring to the NFT ecosystem?

All buyers are refusing to ask themselves, a simple question, they are not facing with truth and that is, why is this NFT, worth anything or better yet, why will this NFT, have any value in the future. Every single item with true long term value, gets this from two main things, scarcity and demand. Because demand is irrelevant, if availability is abundant and if something is really scarce, but nobody wants it, you’re not going to make much money off of it.

Take bitcoin for instance, why did bitcoin go from pretty much $0 dollars, to well over $50,000 dollars. Well, this all had to do with the implied utility, because early adopters of Bitcoin, saw the huge potential of a digital currency and since more people wanted to invested and profit from the potential upswing, the demand started to outpace availability and the price to skyrocket.

Pokemon cards, comic books and old video games, all followed a similar pattern, where at first, they were all, widely available, while having a profound impact on society, then over time, they became scarce, followed by a huge demand spike, making them very valuable. You can use these same principles to evaluate NFT projects and when you apply this to the project of po**star Lana Rhoades, you clearly see it’s not going to follow this pattern, just like in 99.9% of all NFT cases.

You need huge demand for an NFT project and that demand needs to be based on society at large, not just a handful of die hard fans. This demand does not have to be present right away, as we saw with Bitcoin, however if the demand is going to develop over time, you will need a good reason, for this to happen. This means that an NFT project, needs to have huge implied utility in the future, like bitcoin did, or it needs to have a profound impact on society, like renaissance art, arcade games, or indeed Pokemon cards.

Now I’m not here to tell you, which NFTs to buy and which not, however, I’m trying to open your eyes, about picking your NFTs, more carefully, since it’s only getting harder to pick to right projects and not easier. So don’t buy into influencer hype or promises, of long term commitment, since these have all shown to be false. I will say, however, that you are never be able to definitively say, that a particular NFT project is guaranteed to go up in value, but you can definitively say, that a particular project, has all the right elements to explode in the future.

If Bitcoin was still the only crypto out there, then it would have easily been worth, well over $100,000 dollars right now. However, other crypto’s have basically taken value away from it, by attracting investments. The same is true for NFTs. The first NFTs, that became mainstream, were simply the first, so they exploded in value, since they defined the NFT ecosystem and brought NFTs to the masses even though a lot of NFT art was already out there. But like I said, if no body knows about it or wants it, it has no value.

So look for NFT projects that can be enjoyed or collected by, a wide variety of people or one that provides utility to society in general. The best case scenario, would be a project, that has something truly unique to it, a 1 of 1 and is part of a large future ecosystem, like for instance the first tweet or the first youtube video. This was Why most NFTs are worthless