The value is in the appreciation

I used to collect stamps, and now i collect warhammer miniatures that i also paint.

Since i’m about to move, i wanted to offload a bunch of my warhammer miniatures, but found that people weren’t really interested in buying the, unboxing and painting these miniatures had resulted in a depreciation in their value and as a result i could only sell them for less than what i got them for.

Conversely, my stamp collection keeps getting more valuable, I attribute this to the fact that not only are the stamps really old, but also the impact of mold, global warming and sticky fingers of kids makes the value of each stamp go up with each successive year… after all, every stamp that gets ruined means one less in circulation, there by increasing the value or any remaining stamps.

I’ve recently been pretty interested in NFTs since there’s a few companies i’m looking at that fall into this category, most of them have a model that bases assumption on the concept of collectables. And I can see a flaw in pegging NFTs to this assumption.

NFTs generally don’t have any real scarcity associated, I might have an image that i want to peg to an NFT, but i could do that on multiple NFT platforms, so whilst each NFT is unique, in reality my image is not. The value of any of these NFTs is essentially what ever i say it is, and whatever anyone is prepared to pay for it, its frankly, made up.

But, what if My NFT was hosted on a page, and i had advertising tied to that page, each impression on that page generated ad revenue. Therefore the more impressions my page gets, we can assume this is genuine and based on interest on my NFT hosted on that page, the more ad revenue i can get, this now means that my NFT on this page ias a direct value associated with it, and when i trade this NFT page, the buy is not just buying my NFT, they are also buying to potential ad-revenue associated with my NFT.

In this way, the NFT has a value not just as a collectable, but also by the capacity of that collectable to generate income.

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