Clearing the Blur: Rethinking NFTs and Digital Collectibles
April 22nd, 2023

Title: Clearing the Blur: Rethinking NFTs and Digital Collectibles

The freedom to transact principle allows for the existence of blur, even if some label NFTs as shitcoins. It's not up to any single person to decide their treatment.

Blur thrives because it can, driven by speculation and profit-seeking traders. For NFTs and digital collectibles to evolve, changes must come from both creators and collectors.

The key difference between fungible and non-fungible tokens lies in their individuality. When floor prices become the sole measure of value, these distinctions blur.

Blur capitalized on a market created by its participants, but it's not the root cause. If removed, another would replace it.

To address this issue, consider:

a. Emphasizing rarity's power
b. Valuing collections as a whole, not just the "floor price"
c. Recognizing fair entry points and supply increases as normal

Traditional collectibles show that entry prices don't impact the value of rarer items. The primary market offers fair entry points, while the secondary market typically presents "good deals."

For example, The Walking Dead comic's first issue now sells for thousands, but it initially cost $4.99. Its value rose over time as demand outpaced supply.

We need to better highlight digital collectibles and celebrate them, focusing on whole collections rather than just rare items. Improved pricing models and responsible buying habits can help separate NFTs as shitcoins from legitimate collectibles and art.

Ultimately, it's up to creators, collectors, and the market to determine the future of NFTs and digital collectibles, making the distinction clear for consumers.

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