Am I just too skeptical on Crypto and NFTs?

[bucolic_frolic]

If this stuff is so valuable, why aren't Beanie Babies or Cabbage Patch Dolls also a form of currency? Because in they day, they were trading at insane prices too. And now? not worth very much.

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https://finance.yahoo.com/news/7-nft-crypto-plays-adventurous-150308585.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr

Investors looking at playing the non-fungible token (NFT) space have seen options balloon in recent weeks. Indeed, companies are jumping aboard the cryptocurrency and NFT crypto plays bandwagon like never before.

Some investors may never heard of these so-called non-fungible tokens. Indeed, they’re a new phenomenon, and it’s still a very nascent space.

Essentially, NFTs are the latest crypto that crazy investors are buying into. By creating a unique, non-replicable copy of an image or video (such as a painting, or a Lebron James dunk), investors can own the “master copy” of a highly sought-after collectible.
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https://en.wikipedia.org/wiki/Non-fungible_token

Description

A non-fungible token (NFT) is a unit of data stored on a blockchain (a digital ledger) which can represent a unique digital item like art.[1] An NFT is a cryptographic token, but unlike cryptocurrencies such as bitcoin and many network or utility tokens, NFTs are not mutually interchangeable, i.e., not fungible.[3] An NFT is created by uploading a file, such as an artwork, to an NFT auction market, such as KnownOrigin, Rarible, or OpenSea.[4] This creates a hash of the file recorded on the digital ledger as an NFT, which can be bought with cryptocurrency and resold. Very little data is stored directly inside an NFT. NFTs include links pointing to where the art and any details about it are stored, but the links can die.[5] Ownership of an NFT does not inherently grant copyright to any art represented by the NFT.[6] Although an artist can sell an NFT representing a work, the artist can still retain the copyright to the work and create more NFTs of the same work.[7][8] The buyer of the NFT does not gain exclusive access to the work,[9] nor does the buyer gain possession of the "original" digital file.[10] A person who uploads a certain work as an NFT does not have to prove that they are the original artist,[11] and there have been numerous cases where art was used for NFTs without the creator's permission.[12]
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[PoliticAverse]

1. You don't believe there's a "greater fool" out there still? n/t

[MerryHolidays]

2. I totally agree

This is insanity. I would NEVER pay for an NFT.

That being said, I guess the basic premise is that there is a value for an original piece of art and a far lesser value (usually) for reproductions of that art. But this seems to take that concept and create a market out of nothing. And the fact that someone can make multiple NFTs really seems to diminish any inherent value in this kind of digital file and make it ripe for counterfeiting.

Anyway, I wish I were rich enough to have money to waste on NFTs. But then again, I guess I am thankful I am not!

[Voltaire2]

3. Blockchain based currencies tokens and transactions

offer a level of security and verifiability that is not possible with tangible items like beanie babies.

However, in their heyday, some beanies were quite valuable and there was a beanie market.

[bucolic_frolic]

6. Not verifiable?

Enforcement of copyright laws and Federal crackdowns on counterfeit goods seem to justify the authenticity of branded merchandise worldwide. People go to jail for long periods for counterfeit goods.

[Voltaire2]

7. That requires a whole lot of work

and there is still no certainty of authenticity.
Blockchain based digital objects are trivial to authenticate, the authentication can be done by anyone, and that authentication is currently impossible to spoof. It is why just about all financial institutions are integrating blockchain based tech into their systems.

[multigraincracker]

4. For the little guy, I think you can buy fractions.

Go ahead and buy a couple of hundred dollars worth, if you can afford to lose that much. But, buying $50K worth is out of my safety zone.

[Voltaire2]

5. I bought a very small bit of etherium

a few years ago. It was for a journalism platform that never launched. So it just sat in my “wallet”. Looked recently and it had increased in value by 400%.