Why NFT Prices Crashing Is A Good Thing
Anyone who participated in the NFT hype last year would have noticed by now that their portfolio is in the gutter, but this isn't a sign that NFTs are forever dead or were a useless fad. On the contrary, this is the best thing that can happen to a disruptive technology. Like many other innovations before, NFTs first had to get hyped up, blow into a speculative bubble, and then pop before their real use cases could be explored. This is a good thing for the technology, just as the dot-com crash of the '90s was ultimately a good thing for the internet. Speculation restricts innovation by rewarding terrible ideas and garbage products, especially for NFTs.
Most people don't understand how NFTs work or what their use cases are, which only fuels their controversy and misunderstanding. Non-fungible tokens, or NFTs, are blockchain-based assets that serve as a deed of ownership over some "thing", which is linked to a URL embedded in the token's code, and can be transferred/sold to other people or used in blockchain smart contracts. An NFT's entire ownership history and origin can be verified by anyone, making them useful for a very large variety of potential use cases. NFTs have been around for years, but only achieved recognition in 2021.
Related: There's Finally A Vending Machine That Sells NFTs
While some of the most famous collections still command 6- and 7-figure valuations, most have degraded to 2-3-digit sums. After Bitcoin and crypto prices began crashing hard this year, NFTs collapsed along with everything else. Now, the creators of NFTs are forced to sell their collections at realistic prices, allowing more buyers and participants to acquire and collect them. A Decrypt article elaborates on this phenomenon, but there are
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