What does NFT and CFD have in common?
Why NFT and Car Free Day is the same for Indonesian
This article will try to provide context for NFT, Virtual goods, and Phenomenal Transactions before we arrive at the conclusion. Then we will discuss how it is all related to Car Free Day.
1.1 What is NFT?
Non-fungible tokens, also referred to as NFTs, are digital assets with unique properties that make them more difficult to copy or replicate than fungible tokens. Unlike traditional cryptocurrencies that are designed to be used as currency, NFTs have a wide range of applications in the blockchain space. In the world of gaming, NFTs are used to create unique in-game items that have their own value and can’t be replicated or “spent” more than once. In the world of collectibles, NFTs are used to represent unique works of art, physical tokens, and even unique physical spaces.
The unique property of NFTs is what makes them so powerful. Because each token is unique, it has value in and of itself. This prevents users from “spending” their tokens and makes it much harder for scammers to counterfeit. The value of the token is determined by the market, not the creator.
1.2 How to use NFT?
The difference between a traditional cryptocurrency and an NFT comes down to their use. Traditional cryptocurrencies, such as Bitcoin and Ethereum, are designed to be used as a medium of exchange. However, NFTs have a much wider range of applications, and their inherent characteristics make them better suited for some uses than others. For example, digital collectibles, or Collateralized Collectibles (such as CryptoKitties), are best suited for use as a medium of exchange.
One of the most exciting applications for NFTs is in the world of collectibles. Just like traditional collectibles, NFTs are digital assets that can be used to represent unique physical objects. The difference between NFTs and traditional collectibles is in how they are used. With NFTs, there is no physical representation of the asset.
1.3 When to use NFT?
NFTs were originally designed for use in gaming applications, such as CryptoKitties, but are quickly becoming a powerful tool for a variety of other applications. In the world of gaming, the unique characteristics of NFTs make them a powerful tool for creating unique in-game items that have their own unique value and can’t be replicated or “spent” more than once. This makes NFTs an effective way to combat “farming” and other forms of cheating in gaming applications. In the world of collectibles, NFTs are a powerful tool for representing unique physical objects.
For example, if you have a product idea for an in-game item that is unique and can’t be replicated or “spent” more than once, an NFT may be a better option than a token designed for use as a medium of exchange. NFTs are also a great option for projects that want to build a community around a specific use case or idea. For example, if you wanted to build a platform for creators of digital collectibles, an NFT may make the most sense since it allows the community to more easily identify with the project.
Since we mentioned gaming industry earlier, it’d be great to understand the topic of Virtual Goods. This will also help to put NFT in perspective.
2.1 What is Virtual Goods
Virtual goods are items such as avatars, badges, and other digital items that can be used in online games, social networks, and other digital platforms. These items are sometimes called digital assets, digital goods, or digital currency. Virtual goods are a type of tradable digital asset. They can be bought and sold like traditional commodities, but unlike most commodities, virtual goods can take on many different forms and can provide a range of different experiences.
2.2 Market Size of Virtual Goods
Virtual goods have been a part of video games for as long as they have existed. In the early days, they were represented by cartridges and arcade machines, which could be traded between players. Today, they take many forms, including digital items such as skins, emoticons and music, which can be purchased and used in online games. The market for virtual goods is enormous, with an estimated value of $80 billion in 2018.
2.3 Meteoric Price of Virtual Goods
The most expensive virtual goods in the world are items in online video games: weapons, pieces of armor, and other items that people use to improve their performance in the game. These items are usually only available through a special item called a “rare” or “ultra-rare” item, which is extremely difficult to obtain. Which sometimes are extremely limited in quantity and can only be obtained through special means.
The price of these ultra-rare items has increased steadily over the years, often reaching millions of dollars each. The most expensive ultra-rare item ever sold was a weapon skin for a video game called “Fortnite” which sold for $1.5 million in May 2018. The most expensive virtual good ever sold was a “Player unknown’s Battlegrounds” (PUBG) item called a “Ticket to Victory,” which sold for $1.5 million in December 2017. The highest price ever recorded for an in-game item was a “Pokémon” card called a “Mewtwo card,” which sold for $3.4 million in October 2018.
Now that we understand more about the Products. Let’s move on to the Marketplace where the phenomenal transactions of NFT are taking place.
3.1 NFT Marketplace
Opensea.io is the most likely trading platform for NFTs because it’s currently the biggest marketplace. It offers a wide range of services to help users create, manage, and trade digital assets. The platform is fully decentralized, transparent, and secure. It offers a broad selection of NFTs, including video game items, collectibles, and rare digital items.
领英推荐
Announced in April 2021, Opensea has raised $300 million in Series C funding at a $13.3 billion post money valuation. It is now a decacorn.
The recent Indonesian success story of Ghozali Everyday took place at Opensea. Many people also ask why?
3.2 Phenomenal NFT Artwork
Pak, who is also known as NFT artist The Merger, released his first piece of art in August of 2021. The piece was entitled The Merge, and it was the first of its kind: a holographic sculpture that came in multiple pieces that needed to be assembled. The Merger had worked with 3D printers to create the individual parts of the sculpture, so when it came time to market the piece, he decided to do it through the NFT platform. The Merger sold The Merge for $91.8 million via the Nifty Gateway, making it one of the most expensive pieces of NFT art ever.
What makes it more interesting is that rather than one person owning the entire NFT, Pak created a merger model where dozens of people owned a piece of the same NFT.
Some other phenomenal NFTs with astronomical price are:
Source: Business Insider
3.3 NFT Meteoric Price
So now we can understand why some NFT have a gabillion dollar price that only the Sultans can buy.
First, it is difficult to manufacture a NFT without knowing the details about the design. This requires a lot of time and money, and most people don’t have enough of both.?
Second, the value of a NFT is determined by the idea and design, not the material used for its production. This means that no one can exactly replicate another’s asset. This makes it difficult to produce enough of a certain token to satisfy the market demand. This, in turn, results in a higher token price.
Third, investors are willing to pay a lot of money for a limited number of rare and unique assets. This makes it difficult for everyone else to get in. As a result, the demand for NFTs greatly exceeds the supply. This makes NFTs extremely rare and valuable.
What is it with Car Free Day?
Jakarta Car Free Day was (and perhaps still is) perceived by some Local Indonesian as an opportunity to make a living because there are plenty of people we can sell to. The evidence is shown by how many merchants appear in the Car Free Day area to sell their products and services, especially Gorengan (Fried Snacks).
NFT marketplace provides the same opportunity. Most of the meteoric price that doesn’t make sense like this, appear to have monumental price because it was traded by 3400 owners in 8,900 transactions. In Indonesian, we call it Gorengan (group trading practiced by suspected fraudulent syndicates to mark up the price).
This kind of phenomena is perceived as an open opportunity.?
With that opportunity, we can make a quick bet to get magically rich -at no cost, some of us jumped at it. How it went wrong is when we see some Indonesian posted an actual photo of Gorengan (Fried Snacks) as NFT.?
So why is NFT and Car Free Day just the same for Indonesians??
Both can be Misunderstood