NFT's and Beanie Babies, interesting article

[BobC]

Originally Posted by maniac_73

I agree that there is value in having the original. The issue with NFT’s is that ppl think they own the jpeg or video which isn’t actually true. The NFT is stored on a server somewhere and the address is stored on the blockchain in a smart contract which is what you actually buy. If the server crashed or shutdown or the file is deleted/moved then your nft is gone. All you are buying is a number that points to a server somewhere that tells you what resides there.


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Very good point, and one of my issues and reasons for asking what do you actually own, and what are your legal rights, in regards to such ownership. Here's where my business experience, auditor's background, and professional skepticism starts screaming. As you said, the NFT is actually stored on a server somewhere, and can have all the bad things happened as you described. So........

First off, if I pay some ridiculous amount of money for an NFT, why can't I have it moved and stored on a server I own and/control, or can I? And even if I do have it moved, how can I be sure that the NFT from the original server was not somehow copied and saved on that original server, or elsewhere? I guess I would simply have to take someone's word for it, right? Unlike buying say a T205 Addie Joss card and knowing I, and I alone have it, as I actually hold the card in my hand when delivered.

Secondly, if I can't have it moved, I'm sure I'll be told not to worry, computer technology and safeties are in place so I shouldn't ever have any fears or concerns when it comes to my NFT, and reports, documents or verifications I need to feel safe and secure are available from whoever does own/control the server my NFT is stored in. Yeah, just like people that invested with Bernie Madoff or owned stock in Enron could count on those computer generated reports and data to give them that warm and fuzzy feeling that their records and investments were safe and secure. And those were in industries that are highly regulated and subject to specific governmental department (SEC) oversight.

And thirdly, continuing from my last comment, many people would likely argue and say NFTs aren't really all that different from investing in the stock market. You own an intangible interest in something you never really physically see, own, or touch, and record keeping of your ownership is electronically maintained by massive companies and their computer systems, and Wall Street in general. But the entire system and industry is subject to relentless scrutiny and oversight by the government, specifically the SEC, along with other independent groups and watchdogs, like independent CPAs. And who, or what part of the government, is watching over these NFTs and this entirely new digital market, that suddenly arose seemingly out of nowhere, to make sure that people buying into it aren't getting taken advantage of or ripped off? Exactly!!!

Already mentioned the physical advantage of owning and being able to hold and control a T205 Joss card versus owning an NFT. So fourthly, I can also call an insurance company to show and send them a picture of my Joss card, and have it insured for theft, loss, damage, and so on. Can you do that with an NFT, especially if it is not stored on a server you own or control? And assuming an insurance company did agree to cover your NFT, exactly how would that insurance company value it, and possibly pay off on such a claim if say your 1/1 NFT of Gronk doing something idiotic at a party, that you stupidly paid.........errrrrr, smartly invested $50,000 for, was somehow suddenly erased from the server it was on? Especially when a claims agent can probably just go online and literally find hundreds of images of Gronk acting like an idiot, and simply ask you how many different images of him being an idiot would you like him/her to download and send to you to replace the one you lost. Or maybe even worse for you, the claims agent goes online and finds a copy of the exact image you lost, and simply downloads and emails it to you, along with a simple message, "Claim Closed!". Regardless, not sure why an insurer would agree to just give what you willingly paid someone else for it, especially if you haven't been able to use the NFT to generate income to file a loss of revenue type of claim for, or show there is an established secondary market, and therefore, a discernible value to be able to determine for it. At least that's maybe one more advantage I can see for physically owning a T205 Joss card, ease in getting it insured by a reputable insurance company.

I'm concerned these NFTs may eventually turn out to be a lot like all the GU cards they started producing back in the '90s. They started out as something new, real popular, and somewhat valuable, so the card companies kept churning more and more of them out for the same players over and over again. It has gotten to the point where if you go to a show, you'll see dealers with boxes of old game used cards they can't seem to give away today. So what's to stop that from happening with all the GU and limited edition cards they're still turning out for all the current player's eventually? There will always a few such cards that will retain their value, and possibly appreciate some over time. But I think that will mostly be limited to some of the very elite players, especially in regards to older players like Cobb, Ruth, or Wagner. In regards to GU cards, players like those truly have a very limited number of verified GU bats and jerseys that can be acquired and used by the card companies. True rarities because only a few have survived till today. Nothing like the manufactured rarities the modern card companies keep spitting out day after day now. And I can see a possible course like this for NFTs, and the people currently producing and selling them. The smart ones are probably those jumping on the bandwagon to sell NFTs now, before they become overdone and saturate the market and people begin losing interest, or maybe the next big thing comes along to start replacing them. Like perhaps three dimensional holographic NFTs. Who knows, these current NFTs could turn out to be the next Betamax.