The non-fungible tokens (NFTs) have come a long way as now it’s just not celebrities who are into this sector, but even the common man is finding his way into it. Most of them are making this a new way to make money.
However, Chamath Palihapitiya, a well-known billionaire investor and trader, believes that NFTs are in a big hype phase. In his new all-in podcast, Chamath talks about the decline in trading volumes in the non-fungible token (NFT) market.
To explain his point, the Social Capital CEO makes use of Burning Man and Coachella musical festivals to illustrate how they attempted to claim themselves as unique but later ended up as the same.
NFT and general art market are similar
He draws comparisons between the aforementioned music festival and NFT with the overall art market. He further says that there are many things in common around us where people get into something very quickly, they do not agree with the fact that it is similar to the things that already exist.
Palihapitiya believes that instead, they spend a lot of time explaining why it’s different from others. He quotes Buffet’s saying that reads, “Whenever somebody tells you this time is different, it’s probably not that different. ” Another quote that Chamath talks about is “Things don’t necessarily repeat in history, but they rhyme.”
From all these examples and quotes, what the investor is trying to convey is that there are not many things new in this world apart from fundamental leaps in science. In addition, they claim that what is reiterated among the many things is the social capital that comes from making certain choices that are verified by others so that we think we deserve it.
According to the billionaire, the same is happening with NFTs and the general art market. Hence, Coachella and Burning man events are the same as NFTs and art and he ends his conversation saying nothing needs to be different just because other people enjoy it.
