In their guest lecture for the Oklahoma State University Free Enterprise Society, Drs. Quinn and Jonathon Button explained non-fungible tokens and the use/value of this digital art. The two compared NFTs to houses, how the items are "unique digital identifier(s) that cannot be copied, substituted, or subdivided". Unlike money, these items cannot be exchanged for something of equal value due in large part to the detailed ledger of these items on the blockchain. A complete record of all purchases, sales, owners, and creation information exists on the blockchain. The Buttons compared this to an episode of Antique Roadshow in which a man with a detailed record of a nice watch received a valuation for it at $400,000. Further explained by the Buttons was how NFTs can be used to gain access and rewards for future products, events, or admission into clubs. All of this on the metaverse is entirely possible, but is this level of value-based production and elitism really what is right? Should the blockchain ledger be used for digital items in large part?
My reaction while watching this presentation was one of disappointment, exasperation, and most importantly fear. The impression made on me is that in large part, the NFT and metaverse industry is a dystopian ideal in which everything has a monetary value, rewards are unknown, and freedom is the cost. While the benefits of RFID tagging could be useful in real life, providing complete trackable information of highly valuable products, I fail to see the purpose and use of these digital assets in the metaverse. This seems like a ploy by big tech to continually suck in a userbase to constantly interact in their online universe. The effect of these wide, elitist advertising and hype products can surely have value in the metaverse, but I am not convinced NFTs provide any economic advantage to the real world.
On top of the dystopia, the hype and exclusivity feel as though they will have other unintended consequences. Much of this feels like a pyramid scheme, in which the people involved in this venture will only continue to profit if they recruit more people into the world of NFTs. I am also concerned about consumer protection within this realm. While cryptocurrency creates a free market with trackable data, who is to say the makers of these NFTs will not fail to exercise the rewards promised upon purchase? The false scarcity and use of these NFT products along with hype have created a false market valuation. I am sure positives will come out of this new technology, but the costs and forfeitures with which they come may lead to a far worse reality.
