Why are paintings so valuable? It’s not the art. It’s not the visual appeal or emotions you get while viewing it. It’s the context. Van Goh’s starry night invokes an emotion within the viewer. The blues and yellows are surprisingly complementary, but there are tools in the modern day world to not only replicate the painting, but make it better. So why would somebody pay so much for the original? It’s valuable because it’s one of a kind.
Value derives from uniqueness and rarity. Basic psychology and market study proves that this concept is shown through modern day situations like inflation (where money is less valuable because there is more of it) and prehistoric affairs.
So this brings up the question. Can we manifest value by making something one of a kind? For example if I was to draw random lines on a piece of paper and crumple it up, that way it would be one of a kind, would that make it valuable? Most people would say no, and I would agree.
NBA Top-Shot is a website that sells moments that occured in the National Basketball Association for a certain price, all while ensuring that it is the only one available. If I wanted to own Lebron James’ block against the Warriors during the finals, I could own that moment. Since other people have viewed that same moment, it would be valuable. That’s why crumpling up a piece of paper is not as valuable as owning a moment from one of the largest, most important games of the NBA.
People are essentially manifesting value by themselves through online technology and Blockchain. They are selling what are known as a Non-Fungible-Token (NFT).
This begs another question? How do we know what we own is actually one of a kind?
The process is actually quite simple, blockchain systems assign each object or substance--for example a moment on NBA top shot, or a virtual painting--a unique identification code. This means that they are distinctly different from other assets being sold on the market. Once an object has a unique code, it can be bought and sold on the market.
Let's take a look at how much the NFT market is worth.
How much do you think this virtual artwork above was sold for? 100 dollars? 100 thousand?
The artwork was sold for 170,000 dollars, surely a happy day for the artist.
What if I took out my snipping tool and took a quick screenshot of that same virtual painting. Would that mean I now have 170k in my picture libraries? No, that’s what makes technology integration with Non-Fungible-Tokens so amazing, the value doesn't come from the combination of pixels formed to make that painting. It comes from OWNERSHIP.
If we were to somehow combine the experience of the object and the exclusivity, wouldn’t that make it infinitely valuable? For example, if I was selling a piece of music written by me that only one person could hear. How much would you pay for that? Think carefully. By listening to this piece of music, you are experiencing something that nobody else will be able to experience, unless you sell it.
The possibilities are endless, through technologies like encryption, block-chain, and crypto-currencies, humans are MAKING their own value. Truly fascinating.