Non-fungible tokens, or NFTs, have been widely discussed recently.
So, why is Wall Street so focused on NFTs lately?
"Traditional Wall Street is looking at NFTs and wondering who would be willing to buy such a thing. Moreover, who's willing to pay hundreds of thousands, if not millions of dollars, for a digital asset. If we examine NFTs ("Moments") from NBA Top Shots, the cynic will proclaim that they can watch the same highlight on YouTube or ESPN, so why should they pay for it? It's a valid question. But some of these same people grew up collecting baseball cards or football cards. Some of those same people probably tell stories about their mom or dad giving away, or worse, throwing away their card collection now worth ump-teen million dollars," wrote Real Money's Tim Collins.
"Those parents view collectible cards the same way then how naysayers view NFTs today. A collectible is abstract in terms of conceptual value. Its "worth" is defined by demand and scarcity. Obviously, several factors drive demand, but scarcity is something we can measure. A lack of scarcity drove the baseball card market into the ground in the early 1990s," he continued.
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