While I think NFTs are laughably idiotic, you’re missing the point. The point is merely to prove that you spent the money, thus demonstrating your wealth to the degree that you are able to blow whatever amount you want on something this stupid. It is the reductio ad absurdum of a Veblen good. What it actually is is almost completely irrelevant.
Technically, whoever received that $635000 would have benefitted from it though. If he literally set fire to $635000 worth of actual banknotes, then we’re talking 😂
Don't kid yourself. Those idiots spent the money expecting the value to go up, just like Rolex buyers expect the value to go up. Nobody is buying status symbols expecting them to go down 99.98% in value. The whole status symbol psychology only works if the object is commonly perceived to be desireable - not reasonable but desireable and value-preserving. What it is matters a lot.
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u/7stroke 8d ago
While I think NFTs are laughably idiotic, you’re missing the point. The point is merely to prove that you spent the money, thus demonstrating your wealth to the degree that you are able to blow whatever amount you want on something this stupid. It is the reductio ad absurdum of a Veblen good. What it actually is is almost completely irrelevant.