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NFTs and the Blockchain - What the hell is all this?


squirtle
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2 minutes ago, phillv85 said:

Imposing a charge is not artificial scarcity. Artificial scarcity can see people speculating on items because there's few of them. If the artist still sells them then those items will never be worth more than the price the artist sells them at.


As I said, you’re wrong. If you limit access to an infinite good, you make it artificially scarce.

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I mean I'm not wrong at all, you're just bending this to suit your definition. 

 

or maybe I am.....

 

Shit people, Tesco are charging for carrots, get out there and buy them while you're can, they're making them artificially scarce!!!

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28 minutes ago, phillv85 said:

I mean I'm not wrong at all, you're just bending this to suit your definition. 

 

or maybe I am.....

 

Shit people, Tesco are charging for carrots, get out there and buy them while you're can, they're making them artificially scarce!!!


Carrots are not an infinite good, so the analogy is flawed. They are also not digital instances, so immaterial to the discussion.

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2 minutes ago, Benny said:

And also

 

https://en.wikipedia.org/wiki/Artificial_scarcity

 

So wrong on the definition of artificial scarcity.

 

NFT art itself though is not scarce, as the image can be right clicked and saved. The actual product itself is not scarce, but the token that is assigned to it is.


There’s nothing there that runs counter to what I said. In fact it fits my argument.

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Just now, phillv85 said:

You're still wrong though aren't you? Instead of trying to prove yourself correct you pull up the stupid quote I made to show how stupid your argument is.


No, I’m correct. If I wasn’t, you’d be able to illustrate how.

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Carrots are a perfect example of something genuinely scarce. If you buy a carrot, you alone own that particular carrot. Once a shop has sold all of its carrots, there's no more available to buy until they get a new delivery.

 

Charging for digital art however does not make it scarce. You can sell an infinite number of identical copies, as there's an infinite supply that can never sell out. Charging restricts the ability to obtain one, but not the level of supply.

 

NFTs introduce artificial scarcity because while the image (or whatever) remains infinitely copiable, the NFT linked to it is unique. Of course in reality it's more like the NFT itself is quite genuinely scarce, while the image remains in infinite supply.

 

Put it this way, if a grocer had an infinite supply of carrots, charging for them wouldn't make them any less infinite.

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1 minute ago, Mogster said:

Carrots are a perfect example of something genuinely scarce. If you buy a carrot, you alone own that particular carrot. Once a shop has sold all of its carrots, there's no more available to buy until they get a new delivery.

 

Charging for digital art however does not make it scarce. You can sell an infinite number of identical copies, as there's an infinite supply that can never sell out. Charging restricts the ability to obtain one, but not the level of supply.

 

NFTs introduce artificial scarcity because while the image (or whatever) remains infinitely copiable, the NFT linked to it is unique. Of course in reality it's more like the NFT itself is quite genuinely scarce, while the image remains in infinite supply.

 

Put it this way, if a grocer had an infinite supply of carrots, charging for them wouldn't make them any less infinite.


And yet charging for them restricts access to those who can pay - which would be artificial scarcity.

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Just now, phillv85 said:

 

No, that would be lowering demand, but nice try


That’s simply semantics - it doesn’t change the point.

 

Perhaps you should go back to carrots? :sherlock:

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4 minutes ago, Mogster said:

Carrots are a perfect example of something genuinely scarce. If you buy a carrot, you alone own that particular carrot. Once a shop has sold all of its carrots, there's no more available to buy until they get a new delivery.

 

Charging for digital art however does not make it scarce. You can sell an infinite number of identical copies, as there's an infinite supply that can never sell out. Charging restricts the ability to obtain one, but not the level of supply.

 

NFTs introduce artificial scarcity because while the image (or whatever) remains infinitely copiable, the NFT linked to it is unique. Of course in reality it's more like the NFT itself is quite genuinely scarce, while the image remains in infinite supply.

 

Put it this way, if a grocer had an infinite supply of carrots, charging for them wouldn't make them any less infinite.

 

Yeah I guess actually technically carrots are not infinite until more are grown, but not scarce as a product itself. 

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NFTs do give you a way to impose a scarcity business model on digital goods which are by definition not scarce, but that’s something you could do with conventional DRM if you wanted to. Indeed, the closure of the Vita store or withdrawal of the good editions of GTA Trilogy from sale are vivid demonstrations of how existing DRM can impose digital scarcity.

 

The bit where it gets interesting is how NFTs offer a convenient secondary market without the seller really needing to do anything. Scarce goods need a secondary market to attract real money so this creates possibilities that didn’t exist before, like e.g. making a very desirable digital special edition, or digital retailer exclusives as preorder incentives. It lets you bring that scalper economy to a digital market.

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Scalper economy is maybe a needlessly loaded phrase though. :lol:  Can’t see too many people running botnets to snap up those sweet sweet gold sunglasses preorder NFTs for Death Stranding 2 if I’m honest.

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32 minutes ago, ZOK said:


Then you are having trouble reading, and we’ll leave it there.

 

And you're having trouble with comprehension, or admitting just once that you might be wrong about something. Giving a digital image a price does not introduce artificial scarcity, it lowers demand, as has already been pointed out. So you were 100% completely wrong but can't bring yourself to say as much, because then you can't keep up the persona of patronisingly arrogant schoolteacher every time this subject comes up.

 

I wasn't correct about defining "produce" as non scarce, so happy to admit I was wrong there. Go on, try it, it's easy.

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20 minutes ago, Benny said:

 

And you're having trouble with comprehension, or admitting just once that you might be wrong about something. Giving a digital image a price does not introduce artificial scarcity, it lowers demand, as has already been pointed out. So you were 100% completely wrong but can't bring yourself to say as much, because then you can't keep up the persona of patronisingly arrogant schoolteacher every time this subject comes up.

 

I wasn't correct about defining "produce" as non scarce, so happy to admit I was wrong there. Go on, try it, it's easy.


 

On the occasions I am wrong, I’m more than happy to admit it, naturally.

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