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The Fallacies Behind NFTs

April 3, 20212 min read

Last time I brought up the blazing hot topic of NFTs (Non-fungible Tokens), it was so in more of a positive light. When writing that article, there was more to this rabbit-hole than one can think for. However, it seems terming this as a new revenue source isn’t accurate from every aspect. In fact, this new trend can tempt upcoming artists with its ever-rising influence, into making an irreversible investment that could serve better purpose elsewhere. Not only that, it is actively taking part in degrading the environment as we speak.

First in the list of cons comes the hidden costs which apparently very few are actually pointing out. Minting and listing NFTs has hefty costs, as GAS is required to transact Ethereum (whose trading price per unit currently sits at 1787 USD). To even begin the process, minimum cost to publish and register one’s design takes at least a hundred bucks, exclusive of other payments during listing, commission taken by the auctioning platform, transaction expenses and more. One creator uploaded a video stating his profit from a sale was a mere 21 percent. Unless an artist can garner higher amount of bids, the ordeal is a waste of both time and hard-earned money.

While computer geeks might be infuriated with atrociously soaring prices of PC building parts such as GPUs (Graphical Processing Units), boom of NFTs is aiding this craze. Transferring cryptocurrency, say during a bid, happens solely due to existence of miners and their stacks of electricity guzzling machines. And byproduct of this exponentially rising usage of power is causing severe pollution behind the scenes, as “connoisseurs” of art ignorantly indulge in this overhyped market.

Ultimately, it has become more than obvious that NFTs are only profiting a select-few financially surplus individuals and artists with large social media influences. If you don’t fall into either of these categories (like most of us), then this fad is unworthy of any further attention.

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