On Crypto Pricing

I can break your heart with a work of art
Neil Patrick Harris (Tony Awards 2013)

Quite some time ago, when NFT hype just started, I went to Opensea and Rarible to see what NFT (aka "blockchain-based digital art") actually looks like from the human point of view. There I found pretty much what I suspected -- 99% of insanely priced utter garbage shit. Well, I can't say that I'm an art professional, but I will never believe that a trollface becomes a $10K piece of art having been slightly fucked with MS Paint.

Recently I came across another NFT-themed article (I love to read that guy, really) and it reminded me about something I was thinking about every now and then: crypto pricing model is closer to the art world than to finance.

I mean not just NFTs only, I mean all "cryptocurrencies" are priced pretty much like works of art. Some are priced in a "fundamental" way: square inch times hourly wage plus costs of materials, taxes, and profits. Some are priced on their previous sales records (last time it was $1, so now it must be $2). Some are priced "by analogy" (nearly the same shit is about $5 today). Some have "dealers" and "appraisers" who tell the public "how much it should be priced today". As far as I can understand, it's kinda different from how the finance world evaluates its stocks and bonds (and more sophisticated, I'd say).

However, maybe I'm wrong, but in any case, I don't make any good/bad assessments, I just point at a phenomenon.

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