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  • All right let me jump back to part three and I got one more section of what will be answering questions.

  • And here I want to go into the final piece here of what gives an N.

  • F.

  • T.

  • Value.

  • And I want to talk about three concepts, scarcity, provenance and future value.

  • I want to start by showing the graph of the Tulips.

  • So here we go on screen.

  • You can see the price of the tulips back in 1636 and 1637.

  • And if you're not watching with me here you see this crazy graph where the price of a tulip goes from being basically the price of a flower Basically like a dollar up until the price of someone's annual wage, basically $40,000 equivalent.

  • And then crashes back down to a dollar about a year and a half later.

  • This is known as tulip mania.

  • Actually a picture of this was on the on the wall of Gordon Gekko in the movie Wall Street to which is a terrible movie by the way, shame on you saw Oliver Stone for making that movie.

  • But you can tell the gecko knew what was up.

  • And the tulip mania shows that humans have a tendency sometimes to go crazy and create asset bubbles.

  • And again you can go deep into tulip mania.

  • It's very interesting.

  • It was actually one of the few times in human history where futures contracts were created where leverage was created um synthetically and where hype happened where there was an asset bubble around a flower.

  • This is real.

  • The real thing that happened.

  • There was a short squeeze and these things became really a high value for a long time.

  • But it went to show that there was emotion involved.

  • It was also scarcity involved and it's a very human phenomenon to see these asset bubbles grow and they also burst.

  • And I've seen it on Wall street so many times.

  • We have the asian crisis, then we have the Russian ruble crisis.

  • Then we have the mortgage crisis, there's always them with the latin american debt crisis.

  • We will continue to have crises for as long as humans are alive because why we get emotional about trading.

  • And this is what I try to teach my students in module for the defi accelerator don't get emotional about trading because it usually leads to the wrong decisions.

  • And so that's why we need to go deep on this and really understand what's going on.

  • So let's talk about scarcity provenance and future value.

  • Let me show you a little bit of an example of what scarcity is.

  • And so you can see a picture here of some crypto punks and again you can see some crypto punks here, here's nine crypto punks.

  • And again, these are 24 by 24 pixelated images and one of the reasons the crypto punks are valuable is because they have scarcity.

  • Let's talk about scarcity because there was a question earlier about whether the earth rocks will continue to be valuable.

  • There are only 100 eat rocks and they were minted back in 2017, which means because of the Blockchain, you can't go back and recreate them unless you have a time machine.

  • And that's the beauty of N.

  • F.

  • T.

  • S.

  • Is that nobody can go back and mess with that Blockchain.

  • And there's only 108th rocks.

  • So right now Justin son owns one of them and 99 other people own them.

  • And this will always be a part of art history as people would say, right, this is a part of not only art but of history and also technology and so these have a scarcity that will never change.

  • There will only be 100 of the original teeth rocks and that in itself makes things valuable.

  • It's one of the reasons gold is valuable.

  • It's one of the reasons why any collectible is valuable.

  • I can go right now to the national Gallery in Britain and it has a lot of pieces of art that are very, very scarce.

  • And it's something as humans that we value because there are only a few of those and I could argue that if there were a million eat rocks or a million printed every day, if there were a million moans made every day by Monet himself That the value wouldn't be there as much.

  • And so scarcity is important to understand when it comes to crypto punks.

  • There's only 10,000 crypto punks and they're all unique and they're all scarce at this point and that's what breeds in a certain amount of value is that concept of scarcity.

  • So keep that in mind.

  • That also applies to beachfront property.

  • It also applies to Lamborghinis.

  • There's only a certain amount of those built every day even who blow watches.

  • There's only a certain number of U boats that were made in 2000 and seven whenever I bought this watch.

  • And so all of that is programmed in the things we value and the N.

  • F.

  • T.

  • S as well.

  • But let's go further, let's talk about this concept of provenance, provenance is history of ownership.

  • So again look at what happened on open C a couple weekends ago when I was sleeping, somebody bought my Saturn, N.

  • F.

  • T.

  • The big boy Krypto gave me now there's 10,000 of those things is mine special.

  • You might like it but it doesn't look that special.

  • But I owned it and you can see that Brian rose owned this.

  • It was gifted to him by bit boy Krypto and boom then it went up and now it was bought for 1/8 and in the future maybe that history of ownership has value and this is something that's built into the Blockchain and again if I go right now to the louver in paris and I look at the mona lisa.

  • First of all I need someone to prove to me that's real.

  • I need someone to prove to me who owned that throughout the years, I don't know who owned it, may be kings and queens and all these different people, that's the provenance and that's why that piece has value.

  • This now is all built into the Blockchain and the final thing I want to talk about is future value.

  • These things potentially have future value and that gives them value today.

  • So again, look underneath rock, if you think that's an important part of our history, why not buy that sucker for a half a million dollars knowing that the crypto market, the chris crypto assets, there's trillions that are gonna be dumped into this market over the next 5 10 years and there's gonna be people that want these assets, there's gonna be people with meta mask wallets that can plug in, there's gonna be a younger generation that values digital art, you can just see that there's potentially going to be future value.

  • And so all of this adds up into a mix that's giving N.

  • F.

  • T.

  • S value right now.

  • Now will it crash like a tulip bubble we're gonna have to see.

  • But right now it seems that there's a ton of room for this ecosystem to grow and for N.

  • F.

  • T.

  • S to grow as well and I just want to call out and say that I think Andy Warhol, one of the original Gangsters of creating art from scratch and here's a picture of him I think would be well impressed with what's going on with N.

  • F.

  • T.

  • S right now because he will be watching this saying wow I would love to get in on some of this action.

  • And here's one of Andy's famous paintings of the Campbell's soup cans.

  • Again.

  • Andy sold pieces like this on screen for millions of dollars and literally this is a picture of a Campbell's soup can that he made different colors and he did this with Mao, he did this with Marilyn Monroe.

  • These weren't even his pictures and yet he created art from other arts right now and he would be having a field day right now when it comes to N.

  • F.

  • T.

  • S.

  • And so I think these are just some of the many ways where you can really find value uh inside non fungible tokens and it's an extremely exciting place to be right now.

All right let me jump back to part three and I got one more section of what will be answering questions.

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B1 scarcity crypto tulip art valuable blockchain

What gives an NFT value? NFT VALUE EXPLAINED by Brian Rose

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    林宜悉 posted on 2021/11/29
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