Janine Yorio wrote an interesting article over at CoinDesk.com, “What NFT Sales Mean for Digital Real Estate” The article looks at the recent activity in NFTs and comparing them with domain names. Of course NFTs are hot right now. Everything from NBA TopShot cards to digital art from the likes of Banksy.
Seth Godin did publish a piece recently that he sees NFTs as a dangerous trap.
Janine talks about fake land and the recent prices of certain NFTs.
From the article:
Website domain names are another virtual asset, just a combination of letters that exist only online. Dozens of domain names have sold for more than $10 million apiece. (The most expensive domain name sale was for carinsurance.com, which sold for $49.7 million.) Yet, we have made peace with the fact that certain domain names trade for high prices because they are considered to be more “rare.”
So when a friend recently asked me, “Why would I pay real money for fake land?,” I explained that digital real estate is like a combination of NFT art and domain names. That’s because the marginal cost to produce a digital parcel of land is almost nothing, and its value is more closely related to its perceived scarcity than to its actual utility.