Splinterlands: The Illogical Concepts Of An NFT holder
So two days ago I heard of a Splinterland cards that went for $50k, and I began thinking, first, 50k is a lot of money when you convert it into a traditional currency like the Nigerian naira. Firstly someone who owned 50k would comfortably build a house, get probably invested in one of the lucrative business in the country as well as buy a mid-range car for themselves, literally setting themselves up for life and changing their financial standings depending on how much they can manage the money.
This is how life changing $50k can go, in the life of a regular person who has never traded crypto or even understand the concept of blockchain nor the projects that are built on it. Crypto is often synonymous with abundance, sometimes when you look at the money involved with gaming NFTs for example, it's not logical. The basic theories of economics are not applicable to it, there's just too much that feels rather unusual.
This would be the thoughts of someone who doesn't understand how the concept of value is differently applicable to blockchain and crypto. This sort of news would blow headlines, take for example "Splinterlands NFT card, sells for 50K", it would appeal to an aspect of an ignorant public, who would end up bashing the buyer. They would be thinking, "what could the buyer specifically be thinking?" Or even a thought like, "Do they know this money could feed homeless people in Yemen?"
They begin to apply real-time principles of economics of poverty and riches without even bothering to ask the right question. They wouldn't really look at how the economy is totally different from how real-world economics works. Likewise, they don't ask what drives the demand or the value of the said card that would make a buyer part with such an amount of money. While the NFT card's value in itself is not universally valuable to everyone, what then, would drive such a price?
In the past, I've watched my hive account value risen to like $38k for approximately $1 hive price. While this money in liquid could make me forever, I specifically hold the mindset that it's more valuable inside a system where it's constantly added to, and used to also enrich the system, the people and the value they bring. To someone on the outside, they could see me living a minimal life and call me a fool for having money in a system.
It's generally going to be a belief of people who aren't into the system. They don't understand how the system works and how the value is gotten, and this is why people who are involved with crypto will technically be smarter than people who are not. You see, the future of money is totally going to be different. A time will come where real-time assets wouldn't even be as valuable as NFT. So many are adapting to the system and creating unimaginable wealth for themselves.
If I was equipped with 50k, I would probably buy that Splinterlands NFT card, and why is this? Firstly the attributes that drives its value will generate more income. Secondly, it will act as an asset with the plausibility of increasing in prices due to the system. Thirdly, it would be used to generate other forms of rewards when it's put into play or use, probably generating income proportional to the price or more within a specific period of time.
The value of the card is bizarre, the owner might also hold it as a sort of rare form of art, while this might also be part of the reason for the price, it's functionalities or yield ability would be totally insane when compared to some of the most profitable real-time venture that could also be going for $50k as well. The money in the world of crypto is insane. It's the reason why anyone could be put in a different Financial standing without even planning to do so, in the beginning.
While so many will be driven by this "supposed anomaly", in the metrics of equating price with money others will stay interested and of course choose to specifically buy in. Needless to say, a time will come when the value equated to the dollar will no longer be a metric for measuring the value of crypto or digital assets, because it'll surpass any value the dollar may carry due to their abilities to generate income that exceeds some expectations.
It's currently beginning. While $50k is a lot of money, its worth has been tied to a gaming card. The description will generally flatter the card in itself because of the value that 50k weighs in real-time. It's purchasing ability and how useful it is to change one's economic situation. Nevertheless, the buyer of the card has still chosen to buy the card rather than use the money for something else. Not a lot of people will understand this Financial decision because of how the value of the dollars is always put in perspective.
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I don't understand why the card itself sold for 50k. After all, I rarely see the card being used in fights and it seems to only excel in silenced summoner ruleset. However I do think it is definitely rare and I think that is probably the reason why it was sold.
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Definitely rare. That was a lot of money by all means, I however believe that the seller and the buyer agreed that the card was actually worth the money. It's rare too like you said. "Rare" can be value
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This can also be considered a speculation trade. When plot lands comes out the card may potentially yield exceptional cards when used with land. Who knows? worth $50k for such a risk? Some think so.
50k is definitely huge, this is absolutely true but then the buyer has considered this to be a worthwhile investment, plus the money is there, I guess it's about giving out, to maximise profits, probably towards the future. Who knows.
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The 50k likely already come out of the ecosystem. Someone bought early, their assets are now worth ... who knows what, not the only crypto held either, and the price of the card may not actually matter that much :)
its cheap summoner and rare and 20 month ago it was cheaper to buy :D
It's still hard for some people to understand the value of splinterlands or any nft. I think there is a risk in buying them anyway. Are there any guarantees that they will be sold when the price hit that high ? I'm sure there will be some nfts that noone can sell. There is always the last buyer of anything.
Splinterlands economy is quite different with the way the model is built, there's a value with every thing you own. It's different from other kinds of NfT with the way value is built on it.
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Can you assure that buying a card in Splinterlands will bring income anyway in the future ? You mean that there are no losers there ?
There can be loses, but when you don't take risks how can you have a chance of getting lucky?
That's true. Maybe that's me who doesn't want to invest in cards. I have to change my mind a bit about these NFTs. I found a way to create them for free, and I already created one. You can check that here : The cheapest way to create an NFT !.
Maybe if that will bring me income, I'll trust in NFTs more. I think it's just like buying a new crypto that's hard to invest in when you don't know that much about.
The moment you explain it with hive stakes and Hive power it all started to make sense.
My account is just $500 but that is good money too...I'm not selling but I watch it rise...many of my friends who are not in the system don't get it...they might never get it too
It's difficult to get or understand. It's us who's in the system that understand. This doesn't make us immune whatsoever. But I'm preferring to stay in the system. It's more valuable overtime.
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Really liked the post. Actually I will send to mom so she can take a read of it 😉. Thanks for the insight.
If I told a non crypto I own a virtual bought at $20 now worth over $700, what will he or she say? In fact the last time I told someone is he said why not withdraw it 😃😃
That is what we are dealing with here, the mindset is different, the way we see value is different, while am wish I bought more land a non crypto person will say withdraw and go spending.
Money and asset is evolving into different form and am loving it!
By the way I don't have to pay rates and taxes on my land but it's appreciating in value. Go figure that out 😃
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Exactly, you're right, owning an NfT asset is something that wouldn't really make sense to a lot of people and this is simply because they don't understand the system. I laughed in that place where you said they said why not withdraw it, it's more than actually withdrawing it hahaha but it'll be difficult to explain NfT to someone who is totally unaware of how this things works. One actually needs skin in the game to compete.
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$50,000 on a Prince Julian. Sure is a crazy world out there. Such deep pockets are definitely bumping up the value of splinterlands as a whole.
It's crazy, I thought $11,000 was how far the cards could go, but then, I was totally wrong. Shows we could still see some crazy figures later in the future.
Interesting thoughts, I agree with everything, but more valuable is not the cost of the card, but the reasoning about the value of cryptocurrency. The philosophy of cryptocurrency, I would say!💪
Well what I tell you, sure the price of these assets are getting insane without trace of doubt, but at the end of the day there are people behind the cards, so the human factor is key to understand what's going on, so people can determine whatever they want regard to the price of the cards as long as a group of people has the same mind same, in other words, it's all about perspectivas, in my humble opinion splinterlands has a huge value, not exactly those crazy prices if course but the speculation leads and as I said at the beginning, the human factor is what gives value to all this stuff
What I don't quite understand is the reason why NFT and Crypto fans in general, feel the responsibility to explain something that was not invented yesterday and has been around for years....
To be specific, the sale and trade of Cards has been a market for more than 20 years, SecondLife has been a platform where people trade, buy and sell digital items, and that's not to mention the hundreds of communities of that style.
Even before Crypto became popular worldwide, the currency of hundreds of online games were used for various exchanges, and there are thousands of stories that can be told of people making money with games like World of Warcraft, and swords that sold for $200,000.
I feel that nowadays whoever does not understand this, is because he does not want to understand it and seeks to go against this system that seems illogical to him, and against those people there is no valid explanation.
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