Whenever any new technology comes along, there will be early adopters, people who aren’t interested, and there will be some, if the tech starts to gain traction, who express skepticism.
And, sometimes the skeptics are right. Not all tech that garners attention will maintain its momentum. Generally though, the cynics worth listening to are those who go out of their way to fully understand the technology, in order to give it a fair assessment. They will steelman the object they are arguing against.
But, when it comes to NFTs, there is a lot of hostility and doubt, but very few critics who have taken the time to actually look deeply into what exactly it is that they are objecting to.
The most common arguments against, are the following: NFTs are not artistically accomplished, NFTs can be downloaded for free (right-click and save image), NFTs are a scam, NFTs are in a bubble. So, let’s consider those.
NFTs Are Not Artistically Accomplished
This is so broad that it can’t really make sense, any more than if I were to look at a selection of paintings I don’t like, and declare that all paintings are bad.
NFTs are a vehicle for art and design, they are not the art and design itself, so there is as much variety as there is on any other medium. You can find generative art, photography and illustrations of all kinds, so if you haven’t found something you like, then you have probably only scratched the surface.
This criticism perhaps comes from people who only looked at the likes of Bored Ape Yacht Club and CryptoPunks, and decided that it is not their thing. Not liking BAYC and CryptoPunks is fair enough, and it is also true that there is a huge amount of that style of work.
But even then, this simply comes down to a matter of taste. If someone were to say they don’t like, for example, manga-style illustration, that wouldn’t mean that manga-style illustration is bad, it would simply mean that some people don’t like it.
NFTs Can Be Downloaded for Free
The argument here is that you can right-click and save any image without paying a penny. While that is true, this is a misunderstanding when extrapolated to indicate that NFTs are, therefore, worthless. Basically, you cannot right-click and save an NFT, you can only right-click and save an image, similarly to how you could, if you wanted, acquire a copy of a famous artwork.
Has the fact that Bored Ape images can be right-clicked and saved had any impact on Bored Ape prices? No, none whatsoever. Has anyone who right-clicked and saved a Bored Ape image then sold that image for 100 ETH? That seems very unlikely. And did anyone who right-clicked and saved a Bored Ape image then receive the ApeCoin airdrop ? No, not one person.
When you buy an NFT, you buy a token, and the ownership of that token simply cannot be faked. You either have possession of it or you don’t. So, by all means, right-click and save some images, and look at them as much as you like. Art is to be enjoyed, so that’s great. But, it makes no difference whatsoever when it comes to provenance, since what you are not able to right-click and save is the token, and it is the token that conveys ownership and has monetary value.
NFTs Are a Scam
This is tilting at a genuine problem but is not accurate. What would be correct is to say that the NFT world contains scams and dishonest actors, and this is, indeed, an issue. Rug pulls happen frequently, and only this week two men were charged with wire fraud and conspiracy to commit money laundering related to an NFT project.
If you're dipping a toe in to NFTs, it is very important to be aware and alert, and if in doubt, then just keep hold of your crypto. One simple precaution you can take is to keep away from new mints, and only buy either NFTs on secondary markets from proven collections, or NFTs from individual artists with good track records. In other words, be careful out there.
However, recognizing that scams exist and are a problem is different from saying that NFTs themselves are scams. That simply doesn’t add up, and is equivalent to saying something like websites are scams after hearing about a phishing attack, or oil paintings are scams because there are counterfeits circulating.
NFTs Are in a Bubble
This is the criticism that is most worth keeping in mind. If you’re looking at NFTs as an investment or trading opportunity, then it is important to get an idea of their fair value and the likelihood that they will go up or down in price.
However, this is by no means unique to NFTs, or even to crypto in general. In fact, by some accounts we are currently in an everything bubble, so act with care, whatever it is you are choosing to invest in.
What’s more, if there is a crash or a correction, it won’t wipe out the underlying innovation itself, any more than the dot com crash ended the web, or the ICO crash ended blockchain technology.
Diagnosing a bubble (rightly or wrongly) is a comment on market conditions, and on individual competitors, but doesn’t automatically imply that the core product itself is not a legitimate asset.
It is natural that not everyone is on board with NFTs, and it is beneficial to listen to the skeptics. But, at the same time, it is essential to check whether or not critics are operating in good faith from a position of real understanding.
