ModeratorMay 15, 2021 at 12:12 am
This is my second attempt to post this, if you get a double post, I apologize
As I mentioned on the original call, I wanted to do some research into this topic, and my research has led me to have the following questions/concerns. I am still interested, but I do have the following concerns:
- I suggest everyone read this article by Nobel Prize economist Paul Krugman
One of the concerns he raises is that Crypto isn’t tethered to anything in reality. It is purely a digital thing that a group of people have decided is worth money. While it is true that government-issued currency is fiat currency and is no longer tied to the gold standard, Krugman argues that there is a strong real-world tether with government currency because you can use it to pay taxes. Countries like the US and Great Britain aren’t going away, they’ve been around for hundreds of years, and will be around for the foreseeable future. The fact that the government accepts their currency for taxes, fines, fees, etc gives these currencies real-world value. Krugman argues that this tether is actually stronger than a gold or silver standard as gold and silver has less real-world value. The value of crypto could collapse at any moment if investors lose confidence in it. He raises a number of other concerns, such as ease of use, the lack of real-world problems that crypto might solve, and transaction fees, but it is the tethering one that concerns me most…
- ..because, of I’m reading him correctly, it seems like crypto might be a bubble. It is possible to make money money in a bubble–most of my net worth and gain in net worth during the recent housing bubble derived from a series of purchases and sale of my apartments and house–but it’s very risky. Usually, unless there is some mitigating factor (in my case, manhattan real estate was largely shielded from the bubble collapse), most of the people who make money in a bubble, especially a new technology bubble, are early adopters. For example, when I first started working as a journalist in 2002, everyone had dreams of being the next Ben Simmons, the Boston Sports Guy, who revolutionized sports and entertainment journalism, stuck it to ESPN, and is still doing very well on his own. The trouble was that he started it in the 90s, on an AOl platform, and by the time the rest of us were tried to emulate him, it was too late.
I’d like to know where on the the bubble curve (potential bubble curve we are). It still may be early enough, but given the uptick in coverage, social media enthusiasm, etc, I’m seeing a lot of signs that make me fear a bubble, which results from overenthusiasm of investors driving price beyond real-world value (perceived value vs real value, which is where the tethering concerns come in again.
- I’d like to know more about the connection between crypto and comics NFTs. Is the only connection that comics NFTs are paid for through crypto, or is there a stronger connection? I agree with the opinion that there will need to be a reckoning when it comes to digital art/artists selling their art given that artist who do not work traditionally, which is most of them now, seem to be at a disadvantage in the current model, but what is the recourse for if/when the crypto bubble bursts? Would it move to a regular money marketplace? Is there a contingency plan?
I’d also like to get a legal opinion about the dispute between the comics companies and their artists. To what extent can the NFT market survive is the big names can’t sell through it legally? It’s a lot easier to make money with the Jim Lees of the world driving the top of the market than without them.
I’m still interested, but I would like to get some answers to the above questions/concerns which have come up in my research to this point.