1/ On ETH Gas Prices
Are Ethereum gas prices expensive for buying, transporting and storing art?
My 🔥 take is that they are very inexpensive relative to what they are replacing
Is this because 6529 buys 1,000 ETH pieces? NO!
We will work it out on less expensive pieces
Are Ethereum gas prices expensive for buying, transporting and storing art?
My 🔥 take is that they are very inexpensive relative to what they are replacing
Is this because 6529 buys 1,000 ETH pieces? NO!
We will work it out on less expensive pieces
2/ I just bought some 0.1ETH "gm" pieces (so about $350) and have been paying about $35 in gas (10% of the price), so 90% to the artist and 10% in distribution costs.
Is that a lot 🐳or a little 🤏?
Is that a lot 🐳or a little 🤏?
3/ Well, what is my alternative in IRL?
~ For any physical object you buy at retail for $350, not just 'art' but the cool vase on your bookshelf, somewhere between 40% to 75% of the cost is 'distribution' costs - from transportation to middlemen to the cost of the store / staff
~ For any physical object you buy at retail for $350, not just 'art' but the cool vase on your bookshelf, somewhere between 40% to 75% of the cost is 'distribution' costs - from transportation to middlemen to the cost of the store / staff
4/ So in the first level of analysis, we are already at 1/7th to 1/4th the cost, with a much higher % going to the artist
Is that it? Well, no!
We are buying from a global marketplace.
Let's say I bought a $350 painting from India, USA, Argentina and shipped it to Europe?
Is that it? Well, no!
We are buying from a global marketplace.
Let's say I bought a $350 painting from India, USA, Argentina and shipped it to Europe?
5/ There would be another $50 to $500 of shipping costs depending on size, weight, speed, insurance
Is that it? Well no!
Let's say I wanted to keep it secure & damage-free for decades
How much would that cost? Much more than the cost of the art! Here you get that *free*
Is that it? Well no!
Let's say I wanted to keep it secure & damage-free for decades
How much would that cost? Much more than the cost of the art! Here you get that *free*
6/ Is that all? Well, no!
Let's say I wanted to take my physical art on exhibitions around the world, for thousands and tens of thousands and millions to see.
How much would that cost? 1,000x the cost of the art, that is how much.
Let's say I wanted to take my physical art on exhibitions around the world, for thousands and tens of thousands and millions to see.
How much would that cost? 1,000x the cost of the art, that is how much.
7/ Is that all? Well, no!
Let's say I wanted to make it composable and link it to a variety of smart contracts to do interesting things with it with friends and strangers.
How much would that cost in investment banking fees?
LOLOLOLOLOLOL.
That is how much.
Let's say I wanted to make it composable and link it to a variety of smart contracts to do interesting things with it with friends and strangers.
How much would that cost in investment banking fees?
LOLOLOLOLOLOL.
That is how much.
8/ So my view is that on a $350 piece of art (an affordable price for much of the western middle to upper class), you are:
✅Spending $35 in gas
✅Replacing $350 to $350K in IRL costs
✅Paying the artist, not the supply chain
✅Enjoying a global marketplace for art
✅Spending $35 in gas
✅Replacing $350 to $350K in IRL costs
✅Paying the artist, not the supply chain
✅Enjoying a global marketplace for art
9/ For those who buying $1,000 or $10,000 or $100,000 pieces, then the economics become even better because the gas price is the same.
But OK 6529, what about the rest of the world?
Why can't they buy $1 and $5 and $25 NFT art?
This is a good point!
But OK 6529, what about the rest of the world?
Why can't they buy $1 and $5 and $25 NFT art?
This is a good point!
10/ More good news 🥳
There are dozens of other Level 1s (alternatives to Ethereum) or Level 2s (chains built on Ethereum) where fees will be <$1 and will support these cases.
You can do it today w/great art on Tezos and soon many chains will have improved infrastructure/art
There are dozens of other Level 1s (alternatives to Ethereum) or Level 2s (chains built on Ethereum) where fees will be <$1 and will support these cases.
You can do it today w/great art on Tezos and soon many chains will have improved infrastructure/art
11/ So soon, we will have a spectrum of choices from Ethereum, where you can pay 1/10th to 1/1000th of the IRL costs for the highest level of decentralization assurances
And other chains w/ slightly lower security assurances where you pay 1/1000th to 1/1,000,000th the cost
And other chains w/ slightly lower security assurances where you pay 1/1000th to 1/1,000,000th the cost
12/ And another plus is that it is all transparent. You see exactly what you are paying.
That is why it seems high.
The IRL costs are orders of magnitude higher but you don't see them.
The cost is hidden in the final price, but the amount the original creators get is 🤏
That is why it seems high.
The IRL costs are orders of magnitude higher but you don't see them.
The cost is hidden in the final price, but the amount the original creators get is 🤏
13/ So I spend no time worrying about gas fees.
I know that even on my smallest purchases I am getting an amazing deal and that soon, even folks buying $1 to $25 pieces will also have a wide set of great options.
🥳🥳🥳
I know that even on my smallest purchases I am getting an amazing deal and that soon, even folks buying $1 to $25 pieces will also have a wide set of great options.
🥳🥳🥳
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