The creator of Litecoin (LTC), Charlie Lee, has explained the reason why the majority of the trending non-fungible tokens (NFTs) do not worth the cost and hype they are generating.
Recall that non-fungible token (NFT) is vastly becoming popular within the crypto space at the moment. And people are spending a lot of their fortunes to own the digital certificate of pieces that may be valueless eventually.
The latest in the non-fungible token’s ecosystem is the minting of the first-ever tweet recently auctioned by the CEO of Twitter on the platform called Valuables for sell-off. The bid which the minted tweet has received is now up to $2 million.
Over the past hours, there have been questions within the cryptocurrency community as to why a sane person could decide to invest such a fortune in what might later become worthless. Charlie Lee of Litecoin is also of the opinion that most NFT purchases don’t worth the hype and cost.
Most NFTs Don’t Worth the Cost and Hype
The creator of Litecoin (LTC), Charlie Lee took to Twitter on 4th March 2021 to explain why acquiring the digital certificate of collectibles that can be easily, cheaply, and perfectly duplicated don’t worth the cost and hype.
An NFT is a digital certificate to a collectable that can be easily, cheaply, and perfectly duplicated.
— Charlie Lee [LTC⚡] (@SatoshiLite) March 4, 2021
Part of Lee’s argument is that a non-fungible token (NFT) representing a photo, video, or some digital image is nothing more than a digital certificate of authenticity.
In the thread of tweets, Charlie Lee explains further as follows:
“Imagine if we have technology that can perfectly clone a piece of artwork to the last detail where it’s indistinguishable to the original even by experts.
“Then we can duplicate, for example, the Mona Lisa. And every person can hang a perfect replica of the Mona Lisa on a wall at home. That reduces the value of the original Mona Lisa because no one can prove that it’s the original.
“But what if there’s a certificate of authenticity, let’s say signed by Leonardo da Vinci himself. And this certificate cannot be duplicated or even counterfeited unlike the artwork. That is the NFT. How much is this NFT or certificate of authenticity actually worth?
“It’s definitely worth something. But is the full value of the Mona Lisa transferred to this certificate? I argue definitely not. If everyone can have an exact duplicate of the Mona Lisa hanging on their walls, most wouldn’t care much to own the certificate of authenticity.
“Part of the value of owning a collectible is the prestige to be able to say only I own it and can display the collectible. And no one else in the world can do that. NFT reduces that value to only I own and can display the certificate of authenticity.
“The majority of the value of owning a collectible is lost by switching the ownership from the actual collectible to its certificate of authenticity. That’s basically what NBA TopShot NFTs are. They are digital certificates to a short video Moment that anyone can download.”