Scarcity Cred | No Mercy / No Malice

NFTs are interesting in that they have built-in provable scarcity that ensures value. In the analog world, scarcity is something either circumstantial (the virus that wiped out tulip production) or mandated (Beanie Babies being “retired”). With NFTs, it’s in the code. CryptoPunks are valuable, for instance, because there will only ever be 10,000.

NFTs offer digital commerce something the Internet lacks: scarcity and authenticity.

NFTs offer the promise of scarcity and authenticity for digital goods. NFTs aren’t the only way to create scarcity and authenticity online — trusted, centralized entities such as banks (and platforms such as Twitter and Apple) do it within their verticals, and blockchain tech is evolving to address myriad environmental and security concerns. So the... See more

The return of scarcity. One of the defining features of digital media has been limitless supply. Media has long been premised on scarcity -- look at the Upfronts -- in order to drive higher pricing. Take the Bored Ape Yacht Club. Yes, it’s strange to see adults spend tons of money on cartoon primates. But what BAYC points to with its NFTs is that i... See more

This goes well beyond smart contract structures. Why is it that Elon Musk can sell an NFT of Elon Musk's tweet, but Jeff Bezos would have a much harder time doing the same? Elon and Jeff have the same level of ability to screenshot Elon's tweet and stick it into an NFT dapp, so what's the difference? To anyone who has even a basic intuitive underst... See more

Scarcity and authenticity are powerful, and not always forces for good. Our instinctual craving for scarce sugar and fat has produced an obesity crisis, but we aren’t going to throw out the industrial food system and live off the land. Amidst the scams and bubbles, credible scarcity and authenticity will unlock real value in digital markets.