1/ a quick thread on NFTs and why JPEGs are worth spending some time and energy understanding
are NFTs a bubble?
no.
wealth is a bubble. 1% of the global adult population are now millionaires.
2/ the global market for luxury goods i.e. conspicuous spending is absolutely massive
NFTs are digital flex / status symbol for a new class of consumers, but unlike the traditional markets of wealth and status, they are open to anyone, anywhere with verifiable scarcity
3/ for those who says spending millions on JPEGs is dumb and we should be solving world hunger, please give the folks on the trad art collector list a call first
people are spending $200M on blobs of paint. how is spending $2M on blobs of pixels any less noble?
4/ as noted by @Rewkang, look at the relative market caps of these companies
the addressable market for artificially scarce status symbols is in the trillions
the addressable market for verifiably scarce digital status symbols is likely just as big, if not bigger
5/ and unlike bags, watches, and shoes, digital status symbols can be fractionalized, enjoy shared ownership, and used as collateral in on-chain financial markets
@MessariCrypto highlighted the massive financialization opportunities for NFTs
6/ so there are three options
1: do nothing 🙃
2: embrace NFTs, dive in, and attempt to learn and understand; and
3: mock NFTs as a bubble and nothing more than elaborate money laundering, just as you mocked bitcoin 5 years ago
i choose 2
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1/ quick notes and data points from the discussion @kellyjgreer and i had at @PubKey_NYC last night
'tis the season of the most hated rally - bitcoin is ripping and macro folks are not happy about it
jamie dimon and elizabeth warren seem especially mad 😠 max cope incoming
2/ bitcoin pricing is driven by FLOWS
it's tempting to get lost in piles of analysis but as we'll discuss later on, the key to understanding is looking at open positions, trade volume, inflows and outflows
sentiment doesn't matter until it's expressed as a trade
3/ bitcoin is highly reflexive
i had a moment of enlightenment a few years back. i used to believe narrative -> sentiment -> flows -> price but it's really much simpler
price drives action
this is what @saylor $MSTR has perfected. buy, price goes up, follow with narrative
1/ a short summary of a recent talk on silicon, satoshis, and superpowers
power in our world is changing. a decade ago, oil and gas companies and banks ruled markets. now it's tech companies and financialization runs rampant (>100x P/E ratios etc)
2/ as our lives become increasingly digitized, value creation is happening on a new frontier, and a handful of industries and companies are well positioned to capitalize on this shift
3/ this is also impacting the geopolitical landscape. we live in a multipolar world, and power has historically been dependent on the ability of a nation to secure access to natural resources, namely oil
1/ thanks to @farokh and the @RugRadio community for having me on the show today! i enjoyed discussing NFT market structure and why i don't care for utility or roadmaps with my JPEGs 🙅♀️
2/ blog post on NFT market microstructure and how it may evolve over time - don't worry, u will be able to explain market microstructure if u just skim it lightly
bonus: you can collect the post as an NFT if you are so inclined, thanks to @viamirror