Speaker 1: Hello, and welcome to another episode of The Mark Moss Show,
Speaker 1: where we talk about bitcoin. We talked about cryptocurrencies, we
Speaker 1: talk about the decentralized revolution that is taking the world
Speaker 1: by storm. It's no surprise if you're paying attention at all,
Speaker 1: things are rapidly changing. Of course, I've been talking about
Speaker 1: this for about a year and a half of how
Speaker 1: we are at the end of a cycle, not just
Speaker 1: one cycle, but three converging cycles that will change the
Speaker 1: entire world as we know it. We're talking about a
Speaker 1: financial revolution cycle, and eighty year financial revolution cycle, a
Speaker 1: fifty year technological revolution cycle, and a two hundred and
Speaker 1: fifty year political revolution cycle, all three converging right now.
Speaker 1: I talked about it all the time, and we can
Speaker 1: see signs of it all around us. Peak centralization, and
Speaker 1: of course the world is rejecting that and pushing it back,
Speaker 1: going to decentralization, and we have this technology that's leading
Speaker 1: the way. That's one thing that analysts like Ray Dalio,
Speaker 1: who I really respect, just recently read his new book,
Speaker 1: Uh It's an amazing book that was The Changing World Order. Um.
Speaker 1: The amount of research that got into the book is
Speaker 1: amazing and highly recommended for anybody, but what somebody like
Speaker 1: him misses is technology. And so he's done a really
Speaker 1: good job studying the rising fall of empires from a
Speaker 1: financial level and gets into the political level as well.
Speaker 1: For some reason, this seems like what he fails to
Speaker 1: recognize is that it's it's technology that changes the world
Speaker 1: through thousands of years of history if we go back
Speaker 1: and take a look at it, and that is what
Speaker 1: we're witnessing right now. I got a lot of stuff
Speaker 1: to talk about on the show today that I want
Speaker 1: to cover. One of the things that I want to
Speaker 1: cover is something that I haven't talked about on the
Speaker 1: show before, and it's been a hot topic. It's been
Speaker 1: something that I've been asked to cover many, many, many times,
Speaker 1: and that is the world of in f tas that
Speaker 1: stands for a non fungible token. So what the heck
Speaker 1: are n f t s? Why isn't everybody wants me
Speaker 1: to talk about n f t s? And why is
Speaker 1: it that I have not wanted to talk about n
Speaker 1: f t s? Pretty interesting? So I thought, you know what,
Speaker 1: let's dig into that a little bit. I saw an
Speaker 1: article that came out this week on the Wall Street
Speaker 1: Journal talking about it and I thought, you know what,
Speaker 1: this might be a good place to pick it up
Speaker 1: and talk about it. Now, let's say, I guess actually,
Speaker 1: now I'm thinking about it. It's not the first time
Speaker 1: I've talked about n f T s. I have talked
Speaker 1: about them before. It might have been a month or
Speaker 1: two ago. I was talking about n f T s
Speaker 1: and we were talking about specifically how they are used for.
Speaker 1: How do I say it, You know, manipulation, market manipulation,
Speaker 1: if you will, And so there's a lot of market
Speaker 1: manipulation happens in the art industry n f T s.
Speaker 1: So first of all, that me back it up here.
Speaker 1: So an n f T, if you're just tuning in,
Speaker 1: an n f T stands for a non fungible token
Speaker 1: n f T non fungible token. Well, if it's non fungible,
Speaker 1: what what is what is fungible? It's a good question.
Speaker 1: So fungible means one is worth one. So for example,
Speaker 1: a very old US dollar that's all dirty and ripped
Speaker 1: and torn up is worth the same as one brand
Speaker 1: new US dollar that's all clean and crisp and brand new.
Speaker 1: It doesn't matter if it's old, dirty, torn up, or
Speaker 1: if it's brand new, crisp and clean. One dollar is
Speaker 1: worth one dollar. It's fungible. For money to be money,
Speaker 1: it must have certain attributes that make it good money.
Speaker 1: Some of those attributes are it needs to be portable,
Speaker 1: it needs to be divisible, it needs to be durable.
Speaker 1: So portable, you have to be able to carry it around.
Speaker 1: It's one of the reason why gold didn't um It's
Speaker 1: got all the other attributes of money, but gold lacks
Speaker 1: in this one attribute. It's not very portable. Uh, it's
Speaker 1: it's big, it's heavy. So it led to us putting
Speaker 1: gold into the banks, and then the banks gave us
Speaker 1: back receipts or io use or claims on that gold
Speaker 1: or what we would call paper gold certificates or then dollars.
Speaker 1: Those dollars were just claims on the gold, and we
Speaker 1: did that because gold was big, heavy, clunky, and the
Speaker 1: dollars was debt issued on that there was a debt.
Speaker 1: It's an IOU. It allowed us to increase the velocity,
Speaker 1: It allowed us to increase the speed in which we
Speaker 1: can transfer the gold, because, as I'm saying, it doesn't
Speaker 1: fit the one attribute of money, which is portable. If
Speaker 1: you have a gold coin, sure that's pretty portable you
Speaker 1: put in your pocket. If you have millions of dollars
Speaker 1: or tens or millions or hundreds millions of dollars like
Speaker 1: nations do, it's not portable at all. Especially and even
Speaker 1: though a coin may be somewhat portable, it's not in
Speaker 1: today's information age. So today we're working in a connected world,
Speaker 1: internet based world. Most of my team works all remote
Speaker 1: and I pay them remotely, And how can I pay
Speaker 1: them with gold remotely? Of course you can't because it's
Speaker 1: not portable. Uh. Money also should be durable. So obviously
Speaker 1: it wouldn't make much sense to store all my life savings,
Speaker 1: all my wealth in banana because the banana is not
Speaker 1: gonna last that long, right, It's not durable. Gold is
Speaker 1: very durable. Gold couldsider at the bottom of the sea
Speaker 1: for you know, forever and not get corroded. Gold is
Speaker 1: very extremely durable, So that's good. It must be divisible.
Speaker 1: So if we were using you know, in the early days,
Speaker 1: it was a barter system, and so we had a cow,
Speaker 1: and uh, I want to trade you my cow for
Speaker 1: your two goats or whatever. But if you don't want
Speaker 1: the whole cow, that cow is not divisible, so that's
Speaker 1: not good. It also has to be recognizable, recognizable or
Speaker 1: what we call sailable, So that means that a lot
Speaker 1: of people have to take it. So a lot of
Speaker 1: times people when we talk about cryptocurrencies, we talked about bitcoin. Obviously,
Speaker 1: I talk about bitcoin all the time. Pretty much anywhere
Speaker 1: in the world today, you could find someone that could
Speaker 1: take your bitcoin. People say, well, what about x y
Speaker 1: z coin? What about you know this privacy coin? Privacy
Speaker 1: coins are better, they're more private. Well, they may be
Speaker 1: more private, but privacy isn't one of the main attributes
Speaker 1: of money, but sailability or recognizability is. And so I
Speaker 1: can get anyone in the world to take a bitcoin,
Speaker 1: but I can't find somebody in the world to take
Speaker 1: a pirate coin or mon arrow or x y z
Speaker 1: privacy coin. So it must be salable um, and it
Speaker 1: also has to be fungible. So back to the dollar example. Uh, well,
Speaker 1: and it has to be scarce. That's another thing. Oh,
Speaker 1: that's a good one to bring up. So it has
Speaker 1: to be scarce as well. That's the problem with our
Speaker 1: fiat dollars, the the US dollars that we use today.
Speaker 1: They're not scarce as a matter of fact, they print
Speaker 1: trillions of them all the time. As a matter of fact,
Speaker 1: in the last two years, the amount of money, the
Speaker 1: amount of dollars in existence in circulation, has gone up
Speaker 1: by over forty percent. Let me say it again, the
Speaker 1: Federal Reserve, the Central Bank of the US, has has
Speaker 1: increased the money supply by over forty percent and just
Speaker 1: the last two years. So any wonder why home prices
Speaker 1: are up on average about and use cars or up
Speaker 1: on average about doesn't make sense because when they when
Speaker 1: they increase the value of the money, it decreases or
Speaker 1: when they increase the volume of the money, it decreases
Speaker 1: the value or the purchasing power of those dollars. So
Speaker 1: it's not that houses are getting more valuable or use
Speaker 1: cars are getting more valuable. People think their house is
Speaker 1: getting more valuable, but you certainly don't think you're used
Speaker 1: cars getting more valuable. What's happening is your dollars are
Speaker 1: losing their value, losing their purchasing power, and so it
Speaker 1: takes more dollars to buy that same thing, that same
Speaker 1: good that it did before. And so the US dollar
Speaker 1: is is very portable, it's very divisible, it's very recognizable,
Speaker 1: it's most recognized money in the world. It's divisible. I
Speaker 1: can break it down to a hundred pennies, right, It's
Speaker 1: it's pretty durable. At least coins are pretty durable. Even
Speaker 1: the paper dollars are pretty good durable if you put
Speaker 1: them through the wash. So and and it's definitely recognizable.
Speaker 1: So it has all that. It's just not scarce. So
Speaker 1: gold isn't portable, but it is scarce. Dollars are are
Speaker 1: are No, they're not, They're not scarce. Now I'm talking
Speaker 1: about n f t s today. I'm gonna break this
Speaker 1: down for you, but I'm trying to set this up
Speaker 1: so you have a little bit of base knowledge to
Speaker 1: go off of. We'll talk about n f t s,
Speaker 1: but just real quick with bitcoin. Bitcoin hits all the
Speaker 1: attributes of money. So it's extremely portable. I can transfer
Speaker 1: it instantly right from my phone to your phone even
Speaker 1: without electricity. By the way, let me say that, so
Speaker 1: I can. It's extremely portable, it's extremely durable, it's encrypted,
Speaker 1: it's just you know, can't be destroyed. It's extremely divisible.
Speaker 1: You can break it down and do fractions of a penny.
Speaker 1: It's it's basically infinitely divisible. Um, it's fungible. One bitcoin
Speaker 1: is worth one bitcoin, and it's not assailable or recognizable
Speaker 1: as the US dollar by any means. But it's getting there.
Speaker 1: It's getting there quick. So um, that kind of arounds
Speaker 1: out basically the attributes of money. And now we'll talk
Speaker 1: about n f T s now that you have a
Speaker 1: little bit of that base knowledge. But like I said,
Speaker 1: bitcoin at least has all of those attributes. Now a
Speaker 1: lot of people say, but it doesn't have the privacy,
Speaker 1: But again, privacy isn't one of the attributes of money.
Speaker 1: Now you're listening to the markmas Show. We're talking about bitcoin, cryptocurrencies,
Speaker 1: the decentralized Revolution. I wanted to talk about n f
Speaker 1: T s, which we are doing that right now. There's
Speaker 1: a Wall Street Journal article that came out. Uh, n
Speaker 1: f T sales are flatlining. I'm gonna break that down
Speaker 1: for you and more when I get back. So don't
Speaker 1: go away, all right, Welcome back. You're listening to the
Speaker 1: markma Show, and we are talking about bitcoin, we're talking
Speaker 1: about cryptocurrencies, we're talking about the decentralized revolution. Of course,
Speaker 1: each and every week, if you're not tuning in, tuning
Speaker 1: into me, each and every week. Will you certainly should be.
Speaker 1: You don't want to miss an episode. If you're not driving,
Speaker 1: pull out your phone, set a calendar reminder to be
Speaker 1: here with me at this time on this channel each
Speaker 1: and every week, so you can understand the world as
Speaker 1: it's changing right before our very eyes. Now, like I
Speaker 1: said before the break, I was talking about these n
Speaker 1: f T s. There's a Wall Street Journal article that
Speaker 1: came out that said n f T sales are flatlining.
Speaker 1: They say, is the is the beginning of the end
Speaker 1: of n f T s. Now, Like I said, I've
Speaker 1: been asked lots of times too, why don't I talk
Speaker 1: about n f T s. I have talked about them
Speaker 1: once before, um, and I kind of broke down how
Speaker 1: they were used for manipulation, and part of that is
Speaker 1: just real quickly to go into that is basically, um, actually,
Speaker 1: I'll come back to that. Stay with me. We'll get
Speaker 1: back to that. So before the break, I was explaining
Speaker 1: the attributes of money. It had to be portable, divisible, durable, recognizable, sailable,
Speaker 1: and it needs to be fungible. One has to be
Speaker 1: worth one. So bitcoin is fungible. One bitcoin is worth
Speaker 1: one bitcoin. N f T S or not. They're non fungible,
Speaker 1: non fungible token. So that means each token is unique,
Speaker 1: kind of like a baseball card. You could have to
Speaker 1: Mickey Mantle baseball cards, or two stamps or two you
Speaker 1: know early set you know pre set pre uh gold
Speaker 1: coins for example. And even though they're the same coin,
Speaker 1: the same year, same weight, et cetera, they'd be worth
Speaker 1: different amounts because one might have a little more aware
Speaker 1: one my whatever. Right, so they're non fungible even though
Speaker 1: they're the same. And so these tokens are basically that.
Speaker 1: And right now they're being used for um, collectibles, they're
Speaker 1: using being used for art things like that. I'll break
Speaker 1: that down a little bit more. We'll get into that
Speaker 1: a little bit. Um, we're seeing like, uh, you know,
Speaker 1: musicians who have fan clubs, for example, starting to issue
Speaker 1: different collectibles in different ways. Right, you can buy a mug,
Speaker 1: you can buy a hat, you can buy a shirt,
Speaker 1: and um, you could buy a token. Right, you could
Speaker 1: buy a digital piece of art a jpeg if you will. Um.
Speaker 1: And they're calling those n f t s and then
Speaker 1: people think, well, now I own this or let's say
Speaker 1: that there's like um from a YouTube video of Michael
Speaker 1: Jordan's you know, getting getting the slam dunk to win
Speaker 1: the game or whatever, and someone could buy that video
Speaker 1: clip and they have an n f T. It's a
Speaker 1: non fungible token says they own it. They own that
Speaker 1: video clip, but that video clips also on YouTube, right
Speaker 1: or I own this U, I own this jpeg, this
Speaker 1: piece of digital art that's on my computer screen right now.
Speaker 1: Anybody else could go just right click and save and
Speaker 1: they could also have that leaves a lot of people
Speaker 1: scratching their head, right. There's a meme that was going
Speaker 1: around and I don't know if you've seen these memes
Speaker 1: where it's like a kind of like a black and
Speaker 1: white stick drawing kind of cartoon, and it's like some
Speaker 1: people in the living room at a party and there's
Speaker 1: a couple of people dancing on the dance floor and
Speaker 1: there's a guy standing in the corner over thereby like stereo,
Speaker 1: and he's like, I wonder if they know that, but
Speaker 1: I own this song. And it's like a funny meme
Speaker 1: because it's like, uh, kind of showing what NFTs are
Speaker 1: because it's like, okay, so he has a hash, he
Speaker 1: has like a record in a blockchain that says he
Speaker 1: owns the song, but everybody else is listening to the
Speaker 1: song dancing to it. So what does his ownership really mean?
Speaker 1: And it's no different that if I own that clip
Speaker 1: of Michael Jordan's getting that slam dunk. I own it,
Speaker 1: but everybody else has it on their computer they can
Speaker 1: watch it too. So ownership typically implies that it's in
Speaker 1: my possession. Possession is whatever, they say nine tenths of
Speaker 1: the law kind of thing. So if if you had
Speaker 1: a house, but everybody else had it, was had access
Speaker 1: to your house, and you don't have acted to it,
Speaker 1: is it really your house? Right kind of a thing.
Speaker 1: And so that that meme kind of says it all.
Speaker 1: It's like, hey, do they know that this is? That
Speaker 1: I own this song? And he may own it, but
Speaker 1: everyone else has it. So a lot of people are
Speaker 1: wondering what that is. But I'll break that down a
Speaker 1: little bit more Before I do, let's dive into this
Speaker 1: article here real quick. So they said, the Wall Street
Speaker 1: Journal says that the n f T market is collapsing.
Speaker 1: They said, as a statement, they sail the sale of
Speaker 1: non fungible tokens or n f T s failed to
Speaker 1: a daily average of about nineteen thousand this week, a
Speaker 1: decline from a peak of about two hundred and twenty
Speaker 1: five thousand in September. According according to a data website
Speaker 1: non Fungible Token so a daily average. So there was
Speaker 1: about a quarter million, two thousand n f T selling
Speaker 1: per day in September and now we're down to nineteen
Speaker 1: thousand a day. It's pretty big. So the number of
Speaker 1: active wallets in the n f T market fell to
Speaker 1: about fourteen thousand last week from a high of nineteen
Speaker 1: thousand in November. So, when you own a cryptocurrency, bitcoin
Speaker 1: or any other cryptocurrency, one of the biggest features of
Speaker 1: it is that you can take custody of it yourself.
Speaker 1: Remember possession nine tenths of the law. So one of
Speaker 1: the oldest problems that mankind has had is how do
Speaker 1: I store my property in a way that cannot be stolen?
Speaker 1: And so we have to make we have to make,
Speaker 1: you know, friends, we have to form a village, we
Speaker 1: have to make a kingdom, we have to make a
Speaker 1: country to protect our private property from being stolen by
Speaker 1: somebody else. If I had a bunch of gold, that
Speaker 1: have to you know, build a big vault, higher arm
Speaker 1: armed guards to watch that gold all the time. Well,
Speaker 1: then it'd be very difficult for to move that goal because,
Speaker 1: as I said, goal is not portable. However, bitcoins solve
Speaker 1: that problem, and now cryptographically I can secure it online
Speaker 1: and I just have to know my twelve words, my
Speaker 1: backup phrase, and that bitcoin could be accessed from anywhere
Speaker 1: as long as I have access to those twelve words
Speaker 1: that key. I'm not gonna go super deep into that.
Speaker 1: Leave me a comment, let me know if you want
Speaker 1: me to dig in deeper into that part. Specifically, you
Speaker 1: can hit me up on any of the social media
Speaker 1: platforms at one Mark Moss. That's just the number one
Speaker 1: at one Mark Moss on Twitter, on Instagram. I'd love
Speaker 1: to hear from you there. But basically, you can take
Speaker 1: custody of these assets yourself mean and you hold the key.
Speaker 1: To explain it real simple, think of it like a
Speaker 1: locker at like a high school or like an airport.
Speaker 1: So like, hey, my locker C nineteen, Go put this
Speaker 1: envelope in there in the C nineteen that's a public address,
Speaker 1: but only I would have the private key that would
Speaker 1: actually let me open up the locker and move the
Speaker 1: contents and so cryptocurrencies are similar, where you have like
Speaker 1: this public address that anybody could have, but then only
Speaker 1: one person has the private key. And so what they're
Speaker 1: saying is the number of active wallets in an n
Speaker 1: f T market fell. So the number of wallets, that's
Speaker 1: the amount of wallets that hold these n f t
Speaker 1: s hold these cryptocurrency tokens, if you will, And so
Speaker 1: I felt eighty eight percent the amount of active wallets
Speaker 1: wallets that are using this um. It says n f
Speaker 1: t s are Bitcoin like digital tokens that act like
Speaker 1: a certificate of ownership that live on a blockchain. Now
Speaker 1: that's a very key piece I'm gonna come back to.
Speaker 1: It's like a certificate of ownership. I'm gonna get through
Speaker 1: the through the fundamentals of this of this uh of
Speaker 1: this document here, of this article about is the market crashing,
Speaker 1: and then we'll get more into this kind of what
Speaker 1: does this mean. It's a digital representation or certificate of ownership.
Speaker 1: We'll talk about that. Then then we'll talk about different
Speaker 1: areas of n f T s, and then we'll talk
Speaker 1: about maybe what the future is of n f T
Speaker 1: s as well. It says rising interest rates have crushed
Speaker 1: risk risky bets across the financial markets, and n f
Speaker 1: T s are among the most speculative rising interest rates,
Speaker 1: so of course, uh, the Federal Reserve is doing everything
Speaker 1: you can to fight inflation. Inflation, we have prices going
Speaker 1: up like crazy. Eight point five percent was the last
Speaker 1: e P I read that came out. And so of
Speaker 1: course it's like I already said, right, we we saw
Speaker 1: homes go up, used cars go up, steak and milk
Speaker 1: are up, Rents are up on average across the country
Speaker 1: about and so the Phoederal Reserve is acting. They're doing
Speaker 1: something about it. They're raising rates, and so they're saying
Speaker 1: that the assets have been crushed all across the space.
Speaker 1: Since hitting highs in November, the tech heavy NASDAC composit
Speaker 1: has fallen by so the NASDAC Stock Exchange, which has
Speaker 1: most of the tech stocks tech heavy as they call it,
Speaker 1: has fallen twenty three percent since November, and UH, and
Speaker 1: bitcoin bitcoins down as well. Bitcoins down about as well
Speaker 1: from that November high. UM. But back to n f
Speaker 1: T s, it says that many n f T owners
Speaker 1: are finding their investments are worse significantly less than when
Speaker 1: they bought them. I wanna break that down. I want
Speaker 1: to break down a couple of well known tweets that
Speaker 1: sold for millions of dollars and then couldn't even sell
Speaker 1: for a few hundred dollars. And then, because I want
Speaker 1: to break down these different categories of n f t s,
Speaker 1: we're gonna break them down into collectibles, video games, art, metaverse,
Speaker 1: and so much more. Listening to the Mark mos Show,
Speaker 1: I'm gonna be right back with more explaining n f
Speaker 1: T s to you, So do not go away, all right,
Speaker 1: welcome back. You are listening to the Mark Moa Show,
Speaker 1: and we're talking about bitcoin. We're talking about cryptocurrencies. We're
Speaker 1: talking about the decentralized revolution each and every week, and
Speaker 1: right now we are talking about in f t s,
Speaker 1: which are very very hot subject. One I've been asked
Speaker 1: to talk about a lot. I've stayed away from it.
Speaker 1: I've talked about it one time, mostly because I focus
Speaker 1: on bitcoin. I think bitcoin is the only tool that
Speaker 1: can change the world. Um, it's a it's a technological
Speaker 1: revolution that can free us from the problems that are
Speaker 1: created by the money distortion that we have. Whether I
Speaker 1: can own a stock on the blockchain or whether I
Speaker 1: can own a token to a piece of real estate,
Speaker 1: or I have a collectible that doesn't change the world.
Speaker 1: We have collectibles. I can own a share of a
Speaker 1: piece of real state already today. That's why I focus
Speaker 1: on bitcoin. But I am talking about n f T
Speaker 1: s today because everybody's been asking about it, and I
Speaker 1: saw this article I thought was pretty interesting that Walster
Speaker 1: Journal put out that the n f T sales are flatlining,
Speaker 1: and they said so as already throughout those numbers, it's
Speaker 1: been flatlining. The interest has fallen since the peak in September,
Speaker 1: from ah a daily average of a quarter million tokens
Speaker 1: down to nineteen thousand tokens um. A couple of examples,
Speaker 1: there's an n f T of the first tweet from
Speaker 1: Twitter co founder Jack Dorsey. It's sold in March of
Speaker 1: two thousand twenty one for two point nine million. Now
Speaker 1: on Twitter, all the tweets are archived. So if you
Speaker 1: go onto my Twitter account at one Mark Moss, I
Speaker 1: should actually do this because I don't even know, but
Speaker 1: you can scroll back and see what my very first
Speaker 1: tweet was on this account. I had a couple of
Speaker 1: Twitter accounts before that. I had started in a kind
Speaker 1: of abandoned business accounts and things like that. But I'm
Speaker 1: not even I'm not even sure what my original very
Speaker 1: first tweet was, and I should go back and take
Speaker 1: a look at that. But the point it is that
Speaker 1: I can go to anybody's feet and I can go
Speaker 1: back and I can see what what they had on
Speaker 1: their feed. Right, they're all tweets. Somebody decided to buy that.
Speaker 1: As a matter of fact, this guy's name is Sina
Speaker 1: Stavi is the chief executive of a Malaysian based blockchain company,
Speaker 1: Bridge Oracle. He bought it for two point n a million.
Speaker 1: Now back to that meme about people dancing at a
Speaker 1: party to a song and the guys in the corner going, oh,
Speaker 1: I bet they don't know I owned this song. So
Speaker 1: this guy bought the tweet for two point nine million,
Speaker 1: But everyone else can go see the tweet. Two. It's
Speaker 1: literally on Twitter, so he owns it. But so what,
Speaker 1: like everyone else can see it, I could copy it
Speaker 1: and paste it, I could save it to my desktop. Two,
Speaker 1: which is a little bit of the ridiculous this year,
Speaker 1: but he says earlier this year, Mr Stavi put the
Speaker 1: n f t up for auction. He didn't receive any
Speaker 1: bids over fourteen thousand, which is actually pretty high because
Speaker 1: last I saw, I think I talked about it before
Speaker 1: was only a few hundred dollars. But either way, he
Speaker 1: paid three million dollars for it. He couldn't get anyone
Speaker 1: to pay more than fourteen thousand for it today, it's
Speaker 1: a pretty big loss. Now he says, Oh, it's not
Speaker 1: as sign the markets to tier and it's just normal fluctuation.
Speaker 1: It could occur in any market. Okay, let's look look,
Speaker 1: let's look at it more. Uh And another n f
Speaker 1: T buyer purchased a Snoop Dogg curated n f T
Speaker 1: titled Doggie Number four to nine two, and he bought
Speaker 1: that in early April of two for about thirty two
Speaker 1: thousand dollars. It's basically a jpeg. It's a digital picture
Speaker 1: of an image of a green, skinny astronaut standing on
Speaker 1: what looks like a Hollywood Walk of Fame star. And
Speaker 1: he has it up for auction right now. Remember he paid, Uh,
Speaker 1: he paid thirty two thousand for it. He's asking twenty
Speaker 1: five million because we bought it for thirty two thousand,
Speaker 1: and he's gonna sell it for twenty five million. That's amazing.
Speaker 1: That's like hitting the lottery. Could you imagine buying a
Speaker 1: Snoop dogg n F T for thirty two thousand and
Speaker 1: selling for twenty five that'd be pretty good. Now, my
Speaker 1: dad taught me when I was a kid that something
Speaker 1: is only worth what someone else is willing to pay
Speaker 1: for it. So you can say it's worth whatever it's worth,
Speaker 1: but it's only worth what someone else is willing to
Speaker 1: pay for it. And according to this auction, the highest
Speaker 1: current bid for this is right now at two hundred
Speaker 1: dollars to ten dollars. So he bought it for thirty
Speaker 1: two thou he's hoping to make million and the highest
Speaker 1: bid is two dollars. Now this is this goes back
Speaker 1: to this, Uh, how how do we determine value? Valuation?
Speaker 1: So a lot of times you might hear people talking
Speaker 1: about intrinsic value, like they say, bitcoin can't be worth anything,
Speaker 1: there's no intrinsic value. What does that mean, Well, it
Speaker 1: really means nothing. There's no such thing as intrinsic value.
Speaker 1: All value is subjective, and it's subjective based on a
Speaker 1: couple of factors, which is mostly UH, utility and scarcity.
Speaker 1: So the combination of those two. Let me give you
Speaker 1: an example. UH. Let's see if I last night I
Speaker 1: went out to dinner, true story, and UH, on our
Speaker 1: table there was some leftover food and we didn't want it,
Speaker 1: and it got thrown away. If I was on a
Speaker 1: deserted island with a million dollars or a billion dollars
Speaker 1: of cash, a billion dollars of gold, and a billion
Speaker 1: dollars of bitcoin, I had nothing to buy on that island.
Speaker 1: There was no boat to get off, no phone to
Speaker 1: call for help, no food, no water, no nothing. None
Speaker 1: of the billion dollars of gold, bitcoin, or or or
Speaker 1: cash would all be worthless. Now let's say that UH,
Speaker 1: I was able to get those leftovers that were on
Speaker 1: our table that got thrown away last night. There's a
Speaker 1: little bit of food left over, a little bit of water.
Speaker 1: I would probably give all billion dollars that I had
Speaker 1: for that leftover food and water. Now, the food and
Speaker 1: water was worth nothing to me last night I got
Speaker 1: thrown away. But because there was value, I could eat it.
Speaker 1: And of a scarcity, it was the only food around.
Speaker 1: I was going to die if I didn't take it.
Speaker 1: I would trade all my all my money for it.
Speaker 1: So all value is subjective. So he may think this
Speaker 1: n f T is worth twenty five million, but according
Speaker 1: to the market, they say it's worth only about two
Speaker 1: hundred dollars. And this is happening more and more and more. Now. UM,
Speaker 1: I know there's probably a lot of people listening to
Speaker 1: this that are saying, ah, yeah, Mark, but I have
Speaker 1: a friend or I read this story, or I know
Speaker 1: someone else who bought a n f T for two
Speaker 1: hundred and sold it for thirty two or bought sold
Speaker 1: for twenty million, and and there are those stories. I'm
Speaker 1: definitely not saying that doesn't happen. Um. I've been in
Speaker 1: this cryptocurrency space for about seven years now, I know
Speaker 1: lots of people in this space, and I hear those stories. However, Um,
Speaker 1: if we go back to the beginning, there was a
Speaker 1: there was a two D twenty five thousand a day,
Speaker 1: selling a day a quarter million a day. So for
Speaker 1: every one of those stories that you hear, someone that
Speaker 1: bought it for thirty thousand and sold it for two
Speaker 1: million or whatever. For every one of those, there's probably
Speaker 1: you know, a million or millions of people who lost money.
Speaker 1: So doesn't happen. Sure does winning the lottery happen. Sure
Speaker 1: does getting a forty million dollar contract to go played
Speaker 1: professional sports happen? Sure all those things happen. The probability
Speaker 1: of that happening to you, it just it just diminishes,
Speaker 1: all right, And I'm gonna explain why here in a second. So, UM,
Speaker 1: I want to break this down a little bit. So
Speaker 1: there's different types of n f T. Remember n f
Speaker 1: T is a very very very broad category, right, It's
Speaker 1: a non fungible token. There's lots of things that are
Speaker 1: non fungible. Like my car. My I'd drive a drive
Speaker 1: a Ford Raptor. Uh, you could find another Ford Raptor
Speaker 1: the same year, um, same color, but it might be
Speaker 1: worth more or less. My truck may have more scratches.
Speaker 1: My truck maybe taken care of better. It may have
Speaker 1: different mileage. Maybe I drove it on the beach and
Speaker 1: there's rust underneath. So even though they're the same truck,
Speaker 1: the same year, the same color, they're non fungible. Everything
Speaker 1: is not. Most things are non fungible. Look around the room,
Speaker 1: like most things that you have are non fungible. So
Speaker 1: you create a token that represents an unfungible item. Of course,
Speaker 1: there's a lot of them, but they're broken it down
Speaker 1: here kind of by categories. We have collectibles, So collectibles
Speaker 1: are avatars, animals, digital assets. This is also these like
Speaker 1: digital JPEGs, et cetera. Then you have video games. Video
Speaker 1: games is an interesting place that I think there could
Speaker 1: be some sort of future for for n f T s.
Speaker 1: We'll talk about that. Then there's art that's works that
Speaker 1: were made manually or computationally. And then there's the metaverse.
Speaker 1: These are like accessories, real estate, and other items that
Speaker 1: are used in virtual worlds. And so that's probably you
Speaker 1: know that, and uh that the metaverse and the video
Speaker 1: games are probably the area where they may have some
Speaker 1: some legs to actually build out. But the collectibles is
Speaker 1: where the market is. So we can see through two
Speaker 1: thousand twenty two, we have about a hundred and fifty
Speaker 1: million dollars in this collectible segment. Uh this is sales
Speaker 1: volume by category daily. So you have about average about
Speaker 1: a hundred million dollars day of digital assets, but for
Speaker 1: video games you have about I don't know, this is
Speaker 1: about twenty million a day. Art that's made by computers
Speaker 1: you probably have I don't know, five or ten million
Speaker 1: a day, and metaverse is again, maybe five or ten
Speaker 1: million a day. So the hundred million dollars a day
Speaker 1: is these collectibles, these avatars, these digital pieces of art.
Speaker 1: The problem with that is going back to money, collectible
Speaker 1: store of value, is that they have to have certain attributes.
Speaker 1: One of those is that they must be scarce. And
Speaker 1: the problem with n f T s is they have
Speaker 1: become the opposite of scarce. They become overly abundant. You
Speaker 1: listen to the Mark Mo Show, we're talking about n
Speaker 1: f T s. I'll be right back with more. Don't
Speaker 1: go away, all right, welcome back. You're listening to the
Speaker 1: Mark Mass Show. We're talking about bitcoin, cryptocurrencies, that decentralized revolution.
Speaker 1: Of course, each and every week that's what we're talking about.
Speaker 1: And today we are talking about n f T s,
Speaker 1: a topic that I've pretty much stayed away from, but
Speaker 1: I've been asked to talk about quite a bit. And
Speaker 1: we're going through this article on the Wall Street Journal
Speaker 1: called n f T sales are flatlining, and we're kind
Speaker 1: of breaking this down. I went through a bunch of
Speaker 1: data so far. If you're just joining, and I'm not
Speaker 1: gonna go ahead and repeat it all, but we just
Speaker 1: say that the average daily sales are down nine from
Speaker 1: their peak, which is pretty big. Um. We saw that
Speaker 1: the average the active wallets are down about and we
Speaker 1: can see that a couple of big prominent n f
Speaker 1: T s that got purchased Jack Dorsey tweet for two
Speaker 1: point nine million and uh a snoop Dogg tweet I'm
Speaker 1: sorry n f T got purchased. Um. And there the
Speaker 1: stud stoop dog one got purchased for thirty two thousand
Speaker 1: and now it's an auction and it can't sell for
Speaker 1: two bucks. Um. But I was breaking it down in
Speaker 1: these different areas, so collectibles, video games, art, and into
Speaker 1: the metaverse, and I think you know the I guess
Speaker 1: what I would say about these n f t s.
Speaker 1: First of all is that those actually of money. I
Speaker 1: gave you one of them, and one of the very
Speaker 1: important ones is scarcity. The US dollars are not scarce.
Speaker 1: That's a problem. They keep printing more of them, and
Speaker 1: that's why they keep buying you less and less goods.
Speaker 1: Gold is scarce, and so gold has been a very
Speaker 1: good store of value, a good form of money for
Speaker 1: five thousand years. Bitcoin is even more scarce. There will
Speaker 1: never be more than twenty one million but n f
Speaker 1: T s are not scarce at all. They can make
Speaker 1: as many of them as they want, it says interesting.
Speaker 1: N FT is measured by the number of searches for
Speaker 1: the term peaked in January according to Google Trends, and
Speaker 1: has roughly fallen. So we can see that the the
Speaker 1: sales have gone down, the number of wallts have gone down,
Speaker 1: and even the interest even the the Google searches. That's
Speaker 1: an important tool if you if you've never looked at
Speaker 1: that before, you can see what people are searching for.
Speaker 1: And so it says here the imbalance between supply and
Speaker 1: demand is hurting the n f T market. There are
Speaker 1: about five n f T s for every buyer. Now,
Speaker 1: going back to bitcoin, there will never be more than
Speaker 1: twenty one million. There's over fifty million millionaires in the world,
Speaker 1: over fifty million millionaires. That means there's not even enough
Speaker 1: bitcoin for all the millionaires in the world to own
Speaker 1: half of one. Pretty scarce here, it's saying there's five
Speaker 1: n f T s for every buyer. It says at
Speaker 1: the end of April, there have been nine point two
Speaker 1: million n f T sold, which were bought by one
Speaker 1: point eight million people, so nine millions sold to one
Speaker 1: one eight million people, which is pretty interesting. Um. Now,
Speaker 1: if you go back to art um and I'm not
Speaker 1: an art collector, and I'm just gonna make this clear.
Speaker 1: Growing up, I had friends that collected baseball cards. I
Speaker 1: never did. I had friends that did stamps or coins,
Speaker 1: I never did. I don't collect art. My brother, true story.
Speaker 1: My brother sells Pokemon cards, right, those are collectibles, and
Speaker 1: he knows about each different card and why one's worth
Speaker 1: more than another, and it it just really well with that.
Speaker 1: I've just never done that, and I'm just giving you
Speaker 1: that as as a disclaimer. But if you get into
Speaker 1: the world of baseball cards and Pokemon cards or whatever,
Speaker 1: you start to learn the intricacies the differences there, um,
Speaker 1: and what they'll do is then like, uh, you know whatever,
Speaker 1: this Babe Ruth baseball card and I don't know anything
Speaker 1: about it. So forgive me if you're a baseball card person.
Speaker 1: But this Babe Ruth card, for example, they only made
Speaker 1: so many, right, and he's of course dead, and you
Speaker 1: know he's this legend, and uh, there's only so many,
Speaker 1: and so if you can get your hands on one
Speaker 1: of those cards, it's probably worth a lot because of
Speaker 1: the scarcity factor and again still with someone else be
Speaker 1: worth willing to pay for it. But these n f
Speaker 1: t s are just like a digital piece of art.
Speaker 1: Someone just makes it and it's like there's no scarcity
Speaker 1: to it. And as you have the board apes or
Speaker 1: the zombies, and there's millions and millions of board apes,
Speaker 1: Now what makes one board ape different from another? Now
Speaker 1: I think we are starting to see where are like
Speaker 1: certain artists are making things. So for example, a certain
Speaker 1: artists could like make like a hundred sets of Nike
Speaker 1: air Force ones and those could be worth a lot
Speaker 1: of money because he's like a known artist that makes
Speaker 1: a very limited set. So there are some of that
Speaker 1: and we're starting to see a little bit of that.
Speaker 1: But at the end of the day, trying to attach
Speaker 1: a real world, physical thing to something digital just doesn't
Speaker 1: make sense. And I think that's a big failure. And
Speaker 1: I think anybody thinking that this is the future is
Speaker 1: just doesn't really understand the way things work. Because I
Speaker 1: really like the Mona Lisa. You have the Mona Lisa,
Speaker 1: and then you have all the copies of the Mona Lisa,
Speaker 1: and you can make as many copies of the Mona
Speaker 1: Lisa's you want. They're not worth what the mona Lisa is.
Speaker 1: But the mona Lisa is still something tangible, alright, So
Speaker 1: think about it like, think about it like this, Um,
Speaker 1: if you had if you have the world, like like
Speaker 1: the real world that you can go walk around in,
Speaker 1: and then you have a map of the world. Right,
Speaker 1: they're very different things. The map is an information, it's
Speaker 1: some informational construct. The world is a physical object. Right.
Speaker 1: There's a saying it says the map is not the territory.
Speaker 1: The map is not the territory. So what that means
Speaker 1: is it's a map and it resembles the territory. It
Speaker 1: could it's it's probably not completely accurate, but it resembles it.
Speaker 1: It gives you a decent frame of what the world is,
Speaker 1: but it's not the same. Right. A picture of a
Speaker 1: pipe is not a pipe, right, it's a picture of
Speaker 1: a pipe, it's not a pipe. And so that is
Speaker 1: part of the problem. So you have basically you have
Speaker 1: uh this image and you have a record in the
Speaker 1: blockchain that says you own that image, but you don't
Speaker 1: actually have the image, and the two aren't linked together.
Speaker 1: And as I've been saying, anybody could copy that image
Speaker 1: that you have. Right, So that's a big problem. This
Speaker 1: is why other things on the like gold on the
Speaker 1: blockchain don't work either. You can't have a physical object
Speaker 1: put onto a blockchain. What happens is somebody keeps a
Speaker 1: ledger a blockchain. Uh, someone keeps a database that says
Speaker 1: Mark owns gold. So I have gold, it's black, it's
Speaker 1: backed on the blockchain. But since I can't have the
Speaker 1: golden the blockchain, that someone else holds the gold, and
Speaker 1: someone else keeps the ledger that says I own the gold.
Speaker 1: The problem is now I have to trust a third party.
Speaker 1: Now I have to trust that they don't steal my gold,
Speaker 1: that my that my database or my ledger submission doesn't
Speaker 1: get changed something like that. Right, There's no there's no
Speaker 1: permanent relationship to the object itself. It's disconnected, right, So
Speaker 1: n f t s don't change that. The jpeg that
Speaker 1: you own can be lost, it can be corrupted, it
Speaker 1: can be duplicated, it can be hashed, it can be
Speaker 1: sold again, and it happens all the time. Right, you
Speaker 1: own a hash, you own a record of something that's
Speaker 1: not scarce, right, because anybody can copy that that jpeg
Speaker 1: over and over and over. You own a hash that
Speaker 1: says you own it, but it's a hash of something
Speaker 1: that you own that's not scarce that can be recreated. Right,
Speaker 1: you own a garbled up map with no territory, basically
Speaker 1: what you have. But bitcoin fixes this because it it
Speaker 1: goes in the opposite direction, right. It starts with information
Speaker 1: and it makes its own reality. Um. It basically takes
Speaker 1: takes something, takes information, and it takes energy and it
Speaker 1: creates something natively digital, natively digital. So maybe at some point,
Speaker 1: if I, if I hit on this natively digital thing,
Speaker 1: maybe in the world in the future, there's a world
Speaker 1: for items back going back to n f T s
Speaker 1: in the video games. So you know, you play whatever
Speaker 1: video game. I'm not a video game or either, but
Speaker 1: you play a bunch of video games. You play for
Speaker 1: thousands of hours, and you earn credits, and you earn
Speaker 1: new guns, new weapons, new skins, backpacks, whatever. And instead
Speaker 1: of them being stuck in the game, maybe I could
Speaker 1: I could hold those on my own and then I
Speaker 1: decide don't want to play the game anymore. Maybe I
Speaker 1: could sell those to somebody else who plays the game.
Speaker 1: That might be one way to do it. So maybe
Speaker 1: an n f T in a game could be a
Speaker 1: way to go. Um. Maybe there's a future there, but
Speaker 1: we're not there now, so it'll be interesting to see
Speaker 1: how that goes. UM. But either way, right now, the
Speaker 1: n f T s are taking a massive hit down
Speaker 1: over as I said, as you know, as most cryptocurrencies
Speaker 1: are right now. Um, but what do you think about that?
Speaker 1: I'd love to hear some feedback on this. Hopefully it
Speaker 1: hit me up on my social media at one Mark Moss.
Speaker 1: That's just the number one. You can find me on Twitter,
Speaker 1: you can find me on Instagram. I'd love to hear
Speaker 1: from you and tell me what you think. I know
Speaker 1: a lot of people love n f t s and
Speaker 1: I'm a freedom maximum, so to each their own. I
Speaker 1: just want people to understand what it is that they're buying.
Speaker 1: Like I said, full disclaimer, I never bought and sold
Speaker 1: baseball cards or stamps or or coins, and I know
Speaker 1: plenty of people did. Gary Vaynerchuk, who you may have
Speaker 1: heard of, he's huge into n f t s, but
Speaker 1: his whole, his whole uh life growing up, that's what
Speaker 1: he did. He still does. He trades baseball cards, he
Speaker 1: trades stamps, and he goes to garage sales on a
Speaker 1: regular basis, Still looking for these old collectibles. I just
Speaker 1: don't I don't have that specialty information for that. And
Speaker 1: that's the problem with with the collectibles. If you don't
Speaker 1: know the intricacies of each one of those, they can
Speaker 1: be very dangerous. That's what I got for you today.
Speaker 1: Thanks for listening to the Mark mo Show.