I have to admit that even after reading about NFTs I am still not sure what you are actually buying. If I paint something and sell it somebody actually gets that physical item, if I take a photo and sell it either exclusively or for licensed use that person has an image that they can use, print or whatever. But NFTs just seem like a colossal scam.
Maybe one of you can explain to me what they are in simple words please?
Sad thing is that NFTs are being pushed in games as a "the next big thing in gaming!". Little bright light is that some gaming companies are openly against it either from the start or after being told sense by devs/fans.Imagine this:
There is an art gallery with paintings on the wall.
Each painting has a plaquette next to it.
You can pay the gallery money and they will put your name on the plaquette next to the painting listing you as the owner. That's the NFT.
However, the painting itself is not actually yours.
You paid for your name to be on the plaquette next to the painting.
You can't take the painting home.
People can still take pictures of it.
If the gallery closes, you have nothing to show for.
So essentially, it's worthless.
Now how do we make money off of that?
You can sell your NFT, meaning the right to have your name on the plaquette to someone else so they can have their name on it.
Everytime that happens, the local newspaper publishes an article about the transaction which states, for how much it was sold.
You open your own gallery.
You put up a bunch of paintings.
Now you get a few friends.
You start selling the NFTs to each other for unreasonable and ever increasing amounts of money over and over again, driving up the price.
All of that gets published in the newspaper.
You tell people: "Look for how much money these NFTs get sold. it's getting more and more expensive. Get in now, it's a great investment opportunity!"
You pay famous people money to promote your gallery even further.
People think it really is an investment opportunity and start buying the NFTs off of you for that unreasonable price, that only got so high in the first place because you artificially drove it up.
You also charge a commission fee so you also make money off of other people selling/buying NFTs.
You and your friends make A LOT of money.
Everyone else is stuck with worthless NFTs.
Bottom line: It's basically a pyramid scheme and a scam.
You know MLMs preying on middle-aged women with promises of making it as an independent and successful business owner? It's the same thing but preying on people that feel like they missed out on Bitcoin by telling them it’s the next big crypto thing.