The Mark Moss Show - What the Heck are NFTs?

entire world as we know it. We're talking about a financial revolution cycle, and eighty year financial revolution cycle, a fifty year technological revolution cycle, and a two hundred and fifty year political revolution cycle, all three converging right now. I talked about it all the time, and we can see signs of it all around us. Peak centralization, and of course the world is rejecting that and pushing it back, going to decentralization, and we have this technology that's leading

the way. That's one thing that analysts like Ray Dalio, who I really respect, just recently read his new book, Uh It's an amazing book that was The Changing World Order. Um. The amount of research that got into the book is amazing and highly recommended for anybody, but what somebody like him misses is technology. And so he's done a really good job studying the rising fall of empires from a financial level and gets into the political level as well.

For some reason, this seems like what he fails to recognize is that it's it's technology that changes the world through thousands of years of history if we go back and take a look at it, and that is what we're witnessing right now. I got a lot of stuff to talk about on the show today that I want to cover. One of the things that I want to cover is something that I haven't talked about on the

show before, and it's been a hot topic. It's been something that I've been asked to cover many, many, many times, and that is the world of in f tas that stands for a non fungible token. So what the heck are n f t s? Why isn't everybody wants me to talk about n f t s? And why is it that I have not wanted to talk about n f t s? Pretty interesting? So I thought, you know what,

let's dig into that a little bit. I saw an article that came out this week on the Wall Street Journal talking about it and I thought, you know what, this might be a good place to pick it up and talk about it. Now, let's say, I guess actually, now I'm thinking about it. It's not the first time I've talked about n f T s. I have talked about them before. It might have been a month or two ago. I was talking about n f T s and we were talking about specifically how they are used for.

How do I say it, You know, manipulation, market manipulation, if you will, And so there's a lot of market manipulation happens in the art industry n f T s. So first of all, that me back it up here. So an n f T, if you're just tuning in, an n f T stands for a non fungible token n f T non fungible token. Well, if it's non fungible, what what is what is fungible? It's a good question.

So fungible means one is worth one. So for example, a very old US dollar that's all dirty and ripped and torn up is worth the same as one brand new US dollar that's all clean and crisp and brand new. It doesn't matter if it's old, dirty, torn up, or if it's brand new, crisp and clean. One dollar is worth one dollar. It's fungible. For money to be money, it must have certain attributes that make it good money.

Some of those attributes are it needs to be portable, it needs to be divisible, it needs to be durable. So portable, you have to be able to carry it around. It's one of the reason why gold didn't um It's got all the other attributes of money, but gold lacks in this one attribute. It's not very portable. Uh, it's

it's big, it's heavy. So it led to us putting gold into the banks, and then the banks gave us back receipts or io use or claims on that gold or what we would call paper gold certificates or then dollars. Those dollars were just claims on the gold, and we did that because gold was big, heavy, clunky, and the dollars was debt issued on that there was a debt.

It's an IOU. It allowed us to increase the velocity, It allowed us to increase the speed in which we can transfer the gold, because, as I'm saying, it doesn't fit the one attribute of money, which is portable. If you have a gold coin, sure that's pretty portable you put in your pocket. If you have millions of dollars or tens or millions or hundreds millions of dollars like nations do, it's not portable at all. Especially and even though a coin may be somewhat portable, it's not in

today's information age. So today we're working in a connected world, internet based world. Most of my team works all remote and I pay them remotely, And how can I pay them with gold remotely? Of course you can't because it's not portable. Uh. Money also should be durable. So obviously it wouldn't make much sense to store all my life savings, all my wealth in banana because the banana is not gonna last that long, right, It's not durable. Gold is

very durable. Gold couldsider at the bottom of the sea for you know, forever and not get corroded. Gold is very extremely durable, So that's good. It must be divisible. So if we were using you know, in the early days, it was a barter system, and so we had a cow, and uh, I want to trade you my cow for your two goats or whatever. But if you don't want the whole cow, that cow is not divisible, so that's

not good. It also has to be recognizable, recognizable or what we call sailable, So that means that a lot of people have to take it. So a lot of times people when we talk about cryptocurrencies, we talked about bitcoin. Obviously, I talk about bitcoin all the time. Pretty much anywhere in the world today, you could find someone that could take your bitcoin. People say, well, what about x y z coin? What about you know this privacy coin? Privacy

coins are better, they're more private. Well, they may be more private, but privacy isn't one of the main attributes of money, but sailability or recognizability is. And so I can get anyone in the world to take a bitcoin, but I can't find somebody in the world to take a pirate coin or mon arrow or x y z privacy coin. So it must be salable um, and it also has to be fungible. So back to the dollar example. Uh, well, and it has to be scarce. That's another thing. Oh,

that's a good one to bring up. So it has to be scarce as well. That's the problem with our fiat dollars, the the US dollars that we use today. They're not scarce as a matter of fact, they print trillions of them all the time. As a matter of fact, in the last two years, the amount of money, the amount of dollars in existence in circulation, has gone up

by over forty percent. Let me say it again, the Federal Reserve, the Central Bank of the US, has has increased the money supply by over forty percent and just the last two years. So any wonder why home prices are up on average about and use cars or up on average about doesn't make sense because when they when they increase the value of the money, it decreases or when they increase the volume of the money, it decreases

the value or the purchasing power of those dollars. So it's not that houses are getting more valuable or use cars are getting more valuable. People think their house is getting more valuable, but you certainly don't think you're used cars getting more valuable. What's happening is your dollars are losing their value, losing their purchasing power, and so it takes more dollars to buy that same thing, that same

good that it did before. And so the US dollar is is very portable, it's very divisible, it's very recognizable, it's most recognized money in the world. It's divisible. I can break it down to a hundred pennies, right, It's it's pretty durable. At least coins are pretty durable. Even the paper dollars are pretty good durable if you put them through the wash. So and and it's definitely recognizable. So it has all that. It's just not scarce. So gold isn't portable, but it is scarce. Dollars are are

are No, they're not, They're not scarce. Now I'm talking about n f t s today. I'm gonna break this down for you, but I'm trying to set this up so you have a little bit of base knowledge to go off of. We'll talk about n f t s, but just real quick with bitcoin. Bitcoin hits all the attributes of money. So it's extremely portable. I can transfer it instantly right from my phone to your phone even without electricity. By the way, let me say that, so

I can. It's extremely portable, it's extremely durable, it's encrypted, it's just you know, can't be destroyed. It's extremely divisible. You can break it down and do fractions of a penny. It's it's basically infinitely divisible. Um, it's fungible. One bitcoin is worth one bitcoin, and it's not assailable or recognizable as the US dollar by any means. But it's getting there. It's getting there quick. So um, that kind of arounds

out basically the attributes of money. And now we'll talk about n f T s now that you have a little bit of that base knowledge. But like I said, bitcoin at least has all of those attributes. Now a lot of people say, but it doesn't have the privacy, But again, privacy isn't one of the attributes of money. Now you're listening to the markmas Show. We're talking about bitcoin, cryptocurrencies, the decentralized Revolution. I wanted to talk about n f T s, which we are doing that right now. There's

a Wall Street Journal article that came out. Uh, n f T sales are flatlining. I'm gonna break that down for you and more when I get back. So don't go away, all right, Welcome back. You're listening to the markma Show, and we are talking about bitcoin, we're talking about cryptocurrencies, we're talking about the decentralized revolution. Of course, each and every week, if you're not tuning in, tuning into me, each and every week. Will you certainly should be.

You don't want to miss an episode. If you're not driving, pull out your phone, set a calendar reminder to be here with me at this time on this channel each and every week, so you can understand the world as it's changing right before our very eyes. Now, like I said before the break, I was talking about these n f T s. There's a Wall Street Journal article that came out that said n f T sales are flatlining.

They say, is the is the beginning of the end of n f T s. Now, Like I said, I've been asked lots of times too, why don't I talk about n f T s. I have talked about them once before, um, and I kind of broke down how they were used for manipulation, and part of that is just real quickly to go into that is basically, um, actually, I'll come back to that. Stay with me. We'll get back to that. So before the break, I was explaining

the attributes of money. It had to be portable, divisible, durable, recognizable, sailable, and it needs to be fungible. One has to be worth one. So bitcoin is fungible. One bitcoin is worth one bitcoin. N f T S or not. They're non fungible, non fungible token. So that means each token is unique, kind of like a baseball card. You could have to Mickey Mantle baseball cards, or two stamps or two you know early set you know pre set pre uh gold

coins for example. And even though they're the same coin, the same year, same weight, et cetera, they'd be worth different amounts because one might have a little more aware one my whatever. Right, so they're non fungible even though they're the same. And so these tokens are basically that. And right now they're being used for um, collectibles, they're using being used for art things like that. I'll break that down a little bit more. We'll get into that

a little bit. Um, we're seeing like, uh, you know, musicians who have fan clubs, for example, starting to issue different collectibles in different ways. Right, you can buy a mug, you can buy a hat, you can buy a shirt, and um, you could buy a token. Right, you could

buy a digital piece of art a jpeg if you will. Um. And they're calling those n f t s and then people think, well, now I own this or let's say that there's like um from a YouTube video of Michael Jordan's you know, getting getting the slam dunk to win the game or whatever, and someone could buy that video clip and they have an n f T. It's a

non fungible token says they own it. They own that video clip, but that video clips also on YouTube, right or I own this U, I own this jpeg, this piece of digital art that's on my computer screen right now. Anybody else could go just right click and save and they could also have that leaves a lot of people

scratching their head, right. There's a meme that was going around and I don't know if you've seen these memes where it's like a kind of like a black and white stick drawing kind of cartoon, and it's like some people in the living room at a party and there's a couple of people dancing on the dance floor and there's a guy standing in the corner over thereby like stereo, and he's like, I wonder if they know that, but

I own this song. And it's like a funny meme because it's like, uh, kind of showing what NFTs are because it's like, okay, so he has a hash, he has like a record in a blockchain that says he owns the song, but everybody else is listening to the song dancing to it. So what does his ownership really mean? And it's no different that if I own that clip of Michael Jordan's getting that slam dunk. I own it, but everybody else has it on their computer they can

watch it too. So ownership typically implies that it's in my possession. Possession is whatever, they say nine tenths of the law kind of thing. So if if you had a house, but everybody else had it, was had access to your house, and you don't have acted to it, is it really your house? Right kind of a thing. And so that that meme kind of says it all. It's like, hey, do they know that this is? That I own this song? And he may own it, but everyone else has it. So a lot of people are

wondering what that is. But I'll break that down a little bit more Before I do, let's dive into this article here real quick. So they said, the Wall Street Journal says that the n f T market is collapsing. They said, as a statement, they sail the sale of non fungible tokens or n f T s failed to a daily average of about nineteen thousand this week, a decline from a peak of about two hundred and twenty five thousand in September. According according to a data website

non Fungible Token so a daily average. So there was about a quarter million, two thousand n f T selling per day in September and now we're down to nineteen thousand a day. It's pretty big. So the number of active wallets in the n f T market fell to about fourteen thousand last week from a high of nineteen thousand in November. So, when you own a cryptocurrency, bitcoin or any other cryptocurrency, one of the biggest features of it is that you can take custody of it yourself.

Remember possession nine tenths of the law. So one of the oldest problems that mankind has had is how do I store my property in a way that cannot be stolen? And so we have to make we have to make, you know, friends, we have to form a village, we have to make a kingdom, we have to make a country to protect our private property from being stolen by somebody else. If I had a bunch of gold, that have to you know, build a big vault, higher arm

armed guards to watch that gold all the time. Well, then it'd be very difficult for to move that goal because, as I said, goal is not portable. However, bitcoins solve that problem, and now cryptographically I can secure it online and I just have to know my twelve words, my backup phrase, and that bitcoin could be accessed from anywhere as long as I have access to those twelve words that key. I'm not gonna go super deep into that. Leave me a comment, let me know if you want

me to dig in deeper into that part. Specifically, you can hit me up on any of the social media platforms at one Mark Moss. That's just the number one at one Mark Moss on Twitter, on Instagram. I'd love to hear from you there. But basically, you can take custody of these assets yourself mean and you hold the key. To explain it real simple, think of it like a locker at like a high school or like an airport.

So like, hey, my locker C nineteen, Go put this envelope in there in the C nineteen that's a public address, but only I would have the private key that would actually let me open up the locker and move the contents and so cryptocurrencies are similar, where you have like this public address that anybody could have, but then only one person has the private key. And so what they're saying is the number of active wallets in an n

f T market fell. So the number of wallets, that's the amount of wallets that hold these n f t s hold these cryptocurrency tokens, if you will, And so I felt eighty eight percent the amount of active wallets wallets that are using this um. It says n f t s are Bitcoin like digital tokens that act like a certificate of ownership that live on a blockchain. Now that's a very key piece I'm gonna come back to.

It's like a certificate of ownership. I'm gonna get through the through the fundamentals of this of this uh of this document here, of this article about is the market crashing, and then we'll get more into this kind of what does this mean. It's a digital representation or certificate of ownership. We'll talk about that. Then then we'll talk about different areas of n f T s, and then we'll talk about maybe what the future is of n f T

s as well. It says rising interest rates have crushed risk risky bets across the financial markets, and n f T s are among the most speculative rising interest rates, so of course, uh, the Federal Reserve is doing everything you can to fight inflation. Inflation, we have prices going up like crazy. Eight point five percent was the last

e P I read that came out. And so of course it's like I already said, right, we we saw homes go up, used cars go up, steak and milk are up, Rents are up on average across the country about and so the Phoederal Reserve is acting. They're doing something about it. They're raising rates, and so they're saying that the assets have been crushed all across the space.

Since hitting highs in November, the tech heavy NASDAC composit has fallen by so the NASDAC Stock Exchange, which has most of the tech stocks tech heavy as they call it, has fallen twenty three percent since November, and UH, and bitcoin bitcoins down as well. Bitcoins down about as well from that November high. UM. But back to n f T s, it says that many n f T owners are finding their investments are worse significantly less than when

they bought them. I wanna break that down. I want to break down a couple of well known tweets that sold for millions of dollars and then couldn't even sell for a few hundred dollars. And then, because I want to break down these different categories of n f t s, we're gonna break them down into collectibles, video games, art, metaverse, and so much more. Listening to the Mark mos Show, I'm gonna be right back with more explaining n f T s to you, So do not go away, all right,

welcome back. You are listening to the Mark Moa Show, and we're talking about bitcoin. We're talking about cryptocurrencies. We're talking about the decentralized revolution each and every week, and right now we are talking about in f t s, which are very very hot subject. One I've been asked to talk about a lot. I've stayed away from it. I've talked about it one time, mostly because I focus on bitcoin. I think bitcoin is the only tool that

can change the world. Um, it's a it's a technological revolution that can free us from the problems that are created by the money distortion that we have. Whether I can own a stock on the blockchain or whether I can own a token to a piece of real estate, or I have a collectible that doesn't change the world. We have collectibles. I can own a share of a piece of real state already today. That's why I focus

on bitcoin. But I am talking about n f T s today because everybody's been asking about it, and I saw this article I thought was pretty interesting that Walster Journal put out that the n f T sales are flatlining, and they said so as already throughout those numbers, it's been flatlining. The interest has fallen since the peak in September, from ah a daily average of a quarter million tokens down to nineteen thousand tokens um. A couple of examples, there's an n f T of the first tweet from

Twitter co founder Jack Dorsey. It's sold in March of two thousand twenty one for two point nine million. Now on Twitter, all the tweets are archived. So if you go onto my Twitter account at one Mark Moss, I should actually do this because I don't even know, but you can scroll back and see what my very first tweet was on this account. I had a couple of Twitter accounts before that. I had started in a kind

of abandoned business accounts and things like that. But I'm not even I'm not even sure what my original very first tweet was, and I should go back and take a look at that. But the point it is that I can go to anybody's feet and I can go back and I can see what what they had on their feed. Right, they're all tweets. Somebody decided to buy that. As a matter of fact, this guy's name is Sina Stavi is the chief executive of a Malaysian based blockchain company,

Bridge Oracle. He bought it for two point n a million. Now back to that meme about people dancing at a party to a song and the guys in the corner going, oh, I bet they don't know I owned this song. So this guy bought the tweet for two point nine million, But everyone else can go see the tweet. Two. It's literally on Twitter, so he owns it. But so what, like everyone else can see it, I could copy it

and paste it, I could save it to my desktop. Two, which is a little bit of the ridiculous this year, but he says earlier this year, Mr Stavi put the n f t up for auction. He didn't receive any bids over fourteen thousand, which is actually pretty high because last I saw, I think I talked about it before was only a few hundred dollars. But either way, he paid three million dollars for it. He couldn't get anyone to pay more than fourteen thousand for it today, it's

a pretty big loss. Now he says, Oh, it's not as sign the markets to tier and it's just normal fluctuation. It could occur in any market. Okay, let's look look, let's look at it more. Uh And another n f T buyer purchased a Snoop Dogg curated n f T titled Doggie Number four to nine two, and he bought that in early April of two for about thirty two thousand dollars. It's basically a jpeg. It's a digital picture of an image of a green, skinny astronaut standing on

what looks like a Hollywood Walk of Fame star. And he has it up for auction right now. Remember he paid, Uh, he paid thirty two thousand for it. He's asking twenty five million because we bought it for thirty two thousand, and he's gonna sell it for twenty five million. That's amazing. That's like hitting the lottery. Could you imagine buying a Snoop dogg n F T for thirty two thousand and

selling for twenty five that'd be pretty good. Now, my dad taught me when I was a kid that something is only worth what someone else is willing to pay for it. So you can say it's worth whatever it's worth, but it's only worth what someone else is willing to pay for it. And according to this auction, the highest current bid for this is right now at two hundred dollars to ten dollars. So he bought it for thirty two thou he's hoping to make million and the highest

bid is two dollars. Now this is this goes back to this, Uh, how how do we determine value? Valuation? So a lot of times you might hear people talking about intrinsic value, like they say, bitcoin can't be worth anything, there's no intrinsic value. What does that mean, Well, it really means nothing. There's no such thing as intrinsic value. All value is subjective, and it's subjective based on a couple of factors, which is mostly UH, utility and scarcity.

So the combination of those two. Let me give you an example. UH. Let's see if I last night I went out to dinner, true story, and UH, on our table there was some leftover food and we didn't want it, and it got thrown away. If I was on a deserted island with a million dollars or a billion dollars of cash, a billion dollars of gold, and a billion dollars of bitcoin, I had nothing to buy on that island. There was no boat to get off, no phone to

call for help, no food, no water, no nothing. None of the billion dollars of gold, bitcoin, or or or cash would all be worthless. Now let's say that UH, I was able to get those leftovers that were on our table that got thrown away last night. There's a little bit of food left over, a little bit of water. I would probably give all billion dollars that I had for that leftover food and water. Now, the food and water was worth nothing to me last night I got

thrown away. But because there was value, I could eat it. And of a scarcity, it was the only food around. I was going to die if I didn't take it. I would trade all my all my money for it. So all value is subjective. So he may think this n f T is worth twenty five million, but according to the market, they say it's worth only about two

hundred dollars. And this is happening more and more and more. Now. UM, I know there's probably a lot of people listening to this that are saying, ah, yeah, Mark, but I have a friend or I read this story, or I know someone else who bought a n f T for two hundred and sold it for thirty two or bought sold for twenty million, and and there are those stories. I'm definitely not saying that doesn't happen. Um. I've been in this cryptocurrency space for about seven years now, I know

lots of people in this space, and I hear those stories. However, Um, if we go back to the beginning, there was a there was a two D twenty five thousand a day, selling a day a quarter million a day. So for every one of those stories that you hear, someone that bought it for thirty thousand and sold it for two million or whatever. For every one of those, there's probably you know, a million or millions of people who lost money.

So doesn't happen. Sure does winning the lottery happen. Sure does getting a forty million dollar contract to go played professional sports happen? Sure all those things happen. The probability of that happening to you, it just it just diminishes, all right, And I'm gonna explain why here in a second. So, UM, I want to break this down a little bit. So there's different types of n f T. Remember n f T is a very very very broad category, right, It's

a non fungible token. There's lots of things that are non fungible. Like my car. My I'd drive a drive a Ford Raptor. Uh, you could find another Ford Raptor the same year, um, same color, but it might be worth more or less. My truck may have more scratches. My truck maybe taken care of better. It may have different mileage. Maybe I drove it on the beach and there's rust underneath. So even though they're the same truck, the same year, the same color, they're non fungible. Everything

is not. Most things are non fungible. Look around the room, like most things that you have are non fungible. So you create a token that represents an unfungible item. Of course, there's a lot of them, but they're broken it down here kind of by categories. We have collectibles, So collectibles are avatars, animals, digital assets. This is also these like

digital JPEGs, et cetera. Then you have video games. Video games is an interesting place that I think there could be some sort of future for for n f T s. We'll talk about that. Then there's art that's works that were made manually or computationally. And then there's the metaverse. These are like accessories, real estate, and other items that

are used in virtual worlds. And so that's probably you know that, and uh that the metaverse and the video games are probably the area where they may have some some legs to actually build out. But the collectibles is where the market is. So we can see through two thousand twenty two, we have about a hundred and fifty million dollars in this collectible segment. Uh this is sales

volume by category daily. So you have about average about a hundred million dollars day of digital assets, but for video games you have about I don't know, this is about twenty million a day. Art that's made by computers you probably have I don't know, five or ten million a day, and metaverse is again, maybe five or ten million a day. So the hundred million dollars a day is these collectibles, these avatars, these digital pieces of art.

The problem with that is going back to money, collectible store of value, is that they have to have certain attributes. One of those is that they must be scarce. And the problem with n f T s is they have become the opposite of scarce. They become overly abundant. You listen to the Mark Mo Show, we're talking about n f T s. I'll be right back with more. Don't go away, all right, welcome back. You're listening to the

Mark Mass Show. We're talking about bitcoin, cryptocurrencies, that decentralized revolution. Of course, each and every week that's what we're talking about. And today we are talking about n f T s, a topic that I've pretty much stayed away from, but I've been asked to talk about quite a bit. And we're going through this article on the Wall Street Journal called n f T sales are flatlining, and we're kind of breaking this down. I went through a bunch of

data so far. If you're just joining, and I'm not gonna go ahead and repeat it all, but we just say that the average daily sales are down nine from their peak, which is pretty big. Um. We saw that the average the active wallets are down about and we can see that a couple of big prominent n f T s that got purchased Jack Dorsey tweet for two point nine million and uh a snoop Dogg tweet I'm

sorry n f T got purchased. Um. And there the stud stoop dog one got purchased for thirty two thousand and now it's an auction and it can't sell for two bucks. Um. But I was breaking it down in these different areas, so collectibles, video games, art, and into the metaverse, and I think you know the I guess what I would say about these n f t s. First of all is that those actually of money. I gave you one of them, and one of the very important ones is scarcity. The US dollars are not scarce.

That's a problem. They keep printing more of them, and that's why they keep buying you less and less goods. Gold is scarce, and so gold has been a very good store of value, a good form of money for five thousand years. Bitcoin is even more scarce. There will never be more than twenty one million but n f T s are not scarce at all. They can make as many of them as they want, it says interesting.

N FT is measured by the number of searches for the term peaked in January according to Google Trends, and has roughly fallen. So we can see that the the sales have gone down, the number of wallts have gone down, and even the interest even the the Google searches. That's an important tool if you if you've never looked at that before, you can see what people are searching for. And so it says here the imbalance between supply and demand is hurting the n f T market. There are

about five n f T s for every buyer. Now, going back to bitcoin, there will never be more than twenty one million. There's over fifty million millionaires in the world, over fifty million millionaires. That means there's not even enough bitcoin for all the millionaires in the world to own half of one. Pretty scarce here, it's saying there's five

n f T s for every buyer. It says at the end of April, there have been nine point two million n f T sold, which were bought by one point eight million people, so nine millions sold to one one eight million people, which is pretty interesting. Um. Now, if you go back to art um and I'm not an art collector, and I'm just gonna make this clear. Growing up, I had friends that collected baseball cards. I never did. I had friends that did stamps or coins,

I never did. I don't collect art. My brother, true story. My brother sells Pokemon cards, right, those are collectibles, and he knows about each different card and why one's worth more than another, and it it just really well with that. I've just never done that, and I'm just giving you

that as as a disclaimer. But if you get into the world of baseball cards and Pokemon cards or whatever, you start to learn the intricacies the differences there, um, and what they'll do is then like, uh, you know whatever, this Babe Ruth baseball card and I don't know anything about it. So forgive me if you're a baseball card person.

But this Babe Ruth card, for example, they only made so many, right, and he's of course dead, and you know he's this legend, and uh, there's only so many, and so if you can get your hands on one of those cards, it's probably worth a lot because of the scarcity factor and again still with someone else be worth willing to pay for it. But these n f t s are just like a digital piece of art. Someone just makes it and it's like there's no scarcity

to it. And as you have the board apes or the zombies, and there's millions and millions of board apes, Now what makes one board ape different from another? Now I think we are starting to see where are like certain artists are making things. So for example, a certain artists could like make like a hundred sets of Nike air Force ones and those could be worth a lot of money because he's like a known artist that makes

a very limited set. So there are some of that and we're starting to see a little bit of that. But at the end of the day, trying to attach a real world, physical thing to something digital just doesn't make sense. And I think that's a big failure. And I think anybody thinking that this is the future is just doesn't really understand the way things work. Because I

really like the Mona Lisa. You have the Mona Lisa, and then you have all the copies of the Mona Lisa, and you can make as many copies of the Mona Lisa's you want. They're not worth what the mona Lisa is. But the mona Lisa is still something tangible, alright, So think about it like, think about it like this, Um, if you had if you have the world, like like the real world that you can go walk around in, and then you have a map of the world. Right,

they're very different things. The map is an information, it's some informational construct. The world is a physical object. Right. There's a saying it says the map is not the territory. The map is not the territory. So what that means is it's a map and it resembles the territory. It could it's it's probably not completely accurate, but it resembles it. It gives you a decent frame of what the world is, but it's not the same. Right. A picture of a pipe is not a pipe, right, it's a picture of

a pipe, it's not a pipe. And so that is part of the problem. So you have basically you have uh this image and you have a record in the blockchain that says you own that image, but you don't actually have the image, and the two aren't linked together. And as I've been saying, anybody could copy that image that you have. Right, So that's a big problem. This is why other things on the like gold on the blockchain don't work either. You can't have a physical object

put onto a blockchain. What happens is somebody keeps a ledger a blockchain. Uh, someone keeps a database that says Mark owns gold. So I have gold, it's black, it's backed on the blockchain. But since I can't have the golden the blockchain, that someone else holds the gold, and someone else keeps the ledger that says I own the gold. The problem is now I have to trust a third party. Now I have to trust that they don't steal my gold, that my that my database or my ledger submission doesn't

get changed something like that. Right, There's no there's no permanent relationship to the object itself. It's disconnected, right, So n f t s don't change that. The jpeg that you own can be lost, it can be corrupted, it can be duplicated, it can be hashed, it can be sold again, and it happens all the time. Right, you own a hash, you own a record of something that's not scarce, right, because anybody can copy that that jpeg

over and over and over. You own a hash that says you own it, but it's a hash of something that you own that's not scarce that can be recreated. Right, you own a garbled up map with no territory, basically what you have. But bitcoin fixes this because it it goes in the opposite direction, right. It starts with information and it makes its own reality. Um. It basically takes takes something, takes information, and it takes energy and it

creates something natively digital, natively digital. So maybe at some point, if I, if I hit on this natively digital thing, maybe in the world in the future, there's a world for items back going back to n f T s in the video games. So you know, you play whatever video game. I'm not a video game or either, but you play a bunch of video games. You play for thousands of hours, and you earn credits, and you earn

new guns, new weapons, new skins, backpacks, whatever. And instead of them being stuck in the game, maybe I could I could hold those on my own and then I decide don't want to play the game anymore. Maybe I could sell those to somebody else who plays the game. That might be one way to do it. So maybe an n f T in a game could be a way to go. Um. Maybe there's a future there, but we're not there now, so it'll be interesting to see

how that goes. UM. But either way, right now, the n f T s are taking a massive hit down over as I said, as you know, as most cryptocurrencies are right now. Um, but what do you think about that? I'd love to hear some feedback on this. Hopefully it hit me up on my social media at one Mark Moss. That's just the number one. You can find me on Twitter, you can find me on Instagram. I'd love to hear from you and tell me what you think. I know a lot of people love n f t s and

I'm a freedom maximum, so to each their own. I just want people to understand what it is that they're buying. Like I said, full disclaimer, I never bought and sold baseball cards or stamps or or coins, and I know plenty of people did. Gary Vaynerchuk, who you may have heard of, he's huge into n f t s, but his whole, his whole uh life growing up, that's what he did. He still does. He trades baseball cards, he trades stamps, and he goes to garage sales on a

regular basis, Still looking for these old collectibles. I just don't I don't have that specialty information for that. And that's the problem with with the collectibles. If you don't know the intricacies of each one of those, they can be very dangerous. That's what I got for you today. Thanks for listening to the Mark mo Show.