NFTs are doomed. Bitcoin Tech Talk #230
My article last week about NFTs being bribes drew a fair amount of attention. Many were especially upset that I would condemn starving artists finally making money, proving the point I made. The people getting paid, or potentially getting paid by Ethereum become its staunch defenders. This would be funny if it wasn’t so sad. In this article, I hope to show that NFTs are doomed to crash from simple economics analysis.
Back in 2017-18, there were so many ICOs coming out that even the most enthusiastic ICO investors couldn’t keep up with all the presales, whitepapers, and token generation events. At some point, there’s simply too much supply and demand, even frenzied demand, can’t keep up. This is what we call the saturation point, where supply keeps increasing and demand starts decreasing. A bubble has formed and is ripe for popping when everything goes south very quickly.