jakiro
Source: MetaCat
Crypto gives us the ability to tokenize everything (especially NFT).As a result, it contributes to a phenomenon most appropriately described as the rise of (headless) pseudo-luxury digital goods, such as: Punks, Squiggles, Open.Why are these valuable?
In almost all cases, in the process of long-term value generation from zero to one, when it comes to assets that are not obviously valuable precipitation, the core of tokenized media works needs to have basic intrinsic value, whether from the origin,Cultural value, artistic value and other aspects.
In most cases,This asset is mainly a unit of personal expression and identity construction(Expressive Accessories).
In many cases, most buyers aim purely to spend money, not to make money.
Through the initial holder base, the work at hand is given social value (this appreciation becomes a ignition to fire, which can explode throughout the community – most assets will never cross this threshold).
Through the initial group of holders, the work at hand is given social value(This appreciation has become a spark that can develop into an entire community. Of course, most assets can never cross this threshold).
The nuance to be recognized here is that the early social value that the asset initially generates is only possible if the holder/community member appreciates the potential intrinsic value.In the early stages, this is the only possible way for more holders with intrinsic motivation to emerge.
One of the key factors in which Punk, Squiggles and Openen can appreciate rapidly in the early stages is that their prices are low and the entry barriers for holders are low.It is not that higher price points make this value creation impossible, but that it makes this value creation more difficult.
Appreciation of the intrinsic value represented by assets does not have to do with whether a person is rich.But transforming passive admirers into members of the community with ownership seems to have a direct relationship with early prices.
This may contradict the logic of traditional luxury pricing, which usually requires high prices to gain status and exclusivity.The reason I call this asset a “headless luxury” is that its value comes from not only the creator, but more from the holder.
Slowly, as the potential intrinsic value of the assets appreciates, the holdings reach a critical point, forming a vibrant community.And the assets themselves gradually become a symbol of a holistic movement beyond independent assets.
As broader consensus emerges around the symbolic representation of the asset, both insiders and outsiders begin to invest further in the asset, expecting more people to buy it over time.A new digital store of value emerges.
As broader consensus emerges on the symbolic representation of the asset, internal and external persons begin to invest further in the asset, expecting more people to buy the asset over time.
This gave birth to a new way of digital value storage.
As this asset is traded and speculated in the market cycle, it gradually gains economic ductility in its symbolic and store of value.
When the financial value exceeds the social value, it is sold.vice versa.The composition of holders around assets will change from focusing on intrinsic value to focusing on extrinsic value. During a bear market, it is possible to fluctuate again in the direction of focusing on intrinsic value (if it survives the attention cycle).
The key point I want to emphasize is that the generation stage of long-term value from zero to one is almost always an intrinsic driving process that takes time.The value generated always occurs after the coin is minted and is always generated by its holder (patiently).
Anything that goes up quickly will fall as quickly as it goes.Few assets that start as pure speculative targets can survive over one bull and bear cycle.Most will gradually disappear and become irrelevant.
The opposite applies to assets with a strong intrinsic starting point.
The rules of the game are now here.
What will people like and appreciate?
What is financially stress-relieving and interesting?
What is important and what brings happiness to people?
What is historically significant?
What are the next Punks, Squiggles, and Opens?
Only time can tell everything =)
