NFTs with intrinsic value, is it possible

[Hydrogen]

At the moment, we appear to be witnessing something resembling a race to create the most perfect and valuable NFT.

Developers and artists around the world are publishing their best effort to create an NFT worth millions.

One thing we have not yet seen are NFTs with attempts at intrinsic value (aside from the typical exclusiveness found in collectibles and art pieces).

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

We have seen stablecoins like tether back their token with USD reserves in an effort to back their digital asset with intrinsic value.

Could we perhaps someday see NFTs follow similar practices?

[Kong Hey Pakboy]

Probably but I don't think that it's not the focus for people right now, right now NFTs that's getting the hype are based on how Fine Arts industry scam people of their money and how they're able to help with money laundering and keeping the rich richer. NFTs are the new era of Fine Arts.

[milewilda]

Probably but I don't think that it's not the focus for people right now, right now NFTs that's getting the hype are based on how Fine Arts industry scam people of their money and how they're able to help with money laundering and keeping the rich richer. NFTs are the new era of Fine Arts.

NFT's isnt just really limited on that key area but also in gaming industry as well thats why its really hard to see on larger scope and presuming that everything would go smooth as expected
but we had seen that everytime theres something being hyped then it would be always attached with lots of fraud and scams in the market and we cant really make out any conclusion
if this would last on where it do comes to a point on where it do able to reach just like on what USDT path just like on what OP had mentioned out.

[Maus0728]

Aren't the assets that NFT games have intrinsic value already in the NFT gaming industry?

You see, the assets generated by games such as Axie Infinity, PVU, Cryptopblades, and so on can only be obtained by the user's work and resources, especially in the case of Axie Infinity, where the price is determined by many criteria (e,g., breed count, genes).
Intrinsic value is a broad phrase that does not refer to an asset that is backed up by anything physical.

I don't know about artworks that are being sold on market where I literally see that they have no real use case, hence, no intrinsic value.

[The Sceptical Chymist]

One thing we have not yet seen are NFTs with attempts at intrinsic value (aside from the typical exclusiveness found in collectibles and art pieces).

That would seem like a desperate attempt to make NFTs have a value that would make them legitimate, because otherwise people would wake up and realize that what they have is the equivalent of a digital Pokemon card that someday nobody will want to buy.

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

Why not buy gold or oil if you want to invest in oil (or in the latter case, oil futures or some other derivative)?  If information is the thing of value, what is it, a secret that only the NFT holder has access to?  Why bother with involving an NFT at all?  Ever since I registered on this forum, there have been discussions about cryptocurrencies being backed by something tangible--like gold, that's always been the most frequent suggestion.  But there's never been any real interest in that, and I'm not sure it could even work, because there would have to be some gold held somewhere to back the crypto, and in that case you're obliged to trust a third party--and that goes against what crypto stands for.

I'm not into NFTs and remain a skeptical observer, just like I was with bitcoin early on.  However, I eventually came to my senses about bitcoin after realizing how it actually worked.  I know how NFTs work, and I don't see them holding high valuations in the long term unless the newer generation ends up preferring them over physical works of art.  Somehow I just don't think that's going to be the case.

NFTs are the new era of Fine Arts.

Don't you think it's a little bit early to make such a bold statement as that?

[Ucy]

The goal should be to create NFTs that can be backed mainly by physical assets/values that are transferable and can be fully owned by  new owners once they buy corresponding NFTs. I actually prefer the values to be things that can help people survive in times of serious crisis.
I hope readers don't think this's for my sake. It's actually for worldwide issues. Truely anti-frigile and decentralized system/tech is very much needed. I can survive without them though.

[paxmao]

...

One thing we have not yet seen are NFTs with attempts at intrinsic value (aside from the typical exclusiveness found in collectibles and art pieces).

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

We have seen stablecoins like tether back their token with USD reserves in an effort to back their digital asset with intrinsic value.

Could we perhaps someday see NFTs follow similar practices?

The fractional ownership of artworks already exists, you can buy parts of a Picasso that effectively, as you describe, stays in a vault. Using an NTF is a viable option for both fractional and full ownership. Aside from collectibles you have the in-game items that do have a market, they can represent any right of use or ownership that is unique. Potentially, they could represent the ownership of a car or a building or a patent with the proper legal framework.

The concept of an NTF is non-fungibility (no two of them are the same, they are not interchangeable like USD or grams of gold) and that is pretty much the opposite to what you´d expect from a fractional ownership, but it can work for full ownership.

[so98nn]

Thing is even with the artists and commercial people NFTs not being prepared in right sense. I have myself tried to make NFT with my pencil artwork but the fees and listing on their site is way too difficult. I mean let’s say I don’t have much knowledge about NFT so I need to hire their services where I can list my artwork and then they will market the same. They will sell it for me and will take huge share out of it. The problem is I am not fine with it since there is big portion that is taken by the service who offers me the listing. Over the time NFT will loose value if artists get frustrated with such services. 

So I am not sure if gold and other digital assets would be point of interest to list with NFT Value. The bath doesn’t fit really.

[Hydrogen]

I tried to find an attempt to back NFTs with intrinsic value. To better illustrate what it might resemble. Found this:

CarbonLand Trust issues digital assets that represent carbon removal credits from forest land that has been conserved for the purpose of sequestering CO2. CarbonLand Trust NFTs have ESG benefits built-in and are the only NFTs that are removing carbon dioxide and protecting forests for future generations to enjoy.

https://twitter.com/CarbonLandTrust

Here we have an attempt to back NFTs with a humanitarian cause: carbon being removed from the atmosphere, to address climate change.

Hopefully this venture will be successful, spawning a chain reaction of spin offs and similar enterprise.

One core aspect of crypto and token based assets has been their competitive nature and innovative spirit. Both of which carry potential to produce benefits to society. But of course, whether or not those potentials could ever become a reality remains to be seen.

[hello_good_sir]

Sure, they could be backed by some physical collectible and have its intrinsic value derived from there.

But at the end of the day the value is still derived from the physical object itself and not the NFT.

You could argue that most NFTs already have intrinsic value given their scarcity and the fact that people seem to desire them. It honestly depends on what your definition of "intrinsic value" truly is - for some, it is a strict definition regarding cash flow generation, but for others it can be a lot broader.

[ilovealtcoins]

NFT is actively supporting blockchain games and it's really exciting. Everyone wants to win the game, they have to have the strongest items encrypted with NFT.
I see a few ideas for creating real estate exchanges using NFT. Each plot of land is encrypted with NFT. It is quite specific and highly applicable.

[lizarder]

At the moment, we appear to be witnessing something resembling a race to create the most perfect and valuable NFT.

Developers and artists around the world are publishing their best effort to create an NFT worth millions.

One thing we have not yet seen are NFTs with attempts at intrinsic value (aside from the typical exclusiveness found in collectibles and art pieces).

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

We have seen stablecoins like tether back their token with USD reserves in an effort to back their digital asset with intrinsic value.

Could we perhaps someday see NFTs follow similar practices?

Currently, NFT is focusing on developing games and artwork, they are starting to seriously work on this project, many people are starting to turn their attention to NFT, even though the artworks they produce are not necessarily accessible to many people at this time.

I haven't seen any basic benefit to the lower classes from perfecting a new project they start, and haven't seen NFT follow a similar practice in its development so far, my concern is, NFT is a high end investment and can't reach the lower classes.

[CryptoG99]

I do not see why not. When can records be created as NFTs. NFTs are young still. Who knows where they will go. Assuming governments finally start accepting Crypto then NFTs will be a great use case for records. You could have your passport, health card and information stored as NFTs on the blockchain. this is probably not the intrinsic you were going for, but hopefully doing it in a "green" blockchain would help with physical records/papers.
From a current platform side of things, it is really fun to watch how some companies are doing with NFTs. The biggest use case currently is NFT related gaming. I love seeing projects like NFT Draft coming out (later this week) that are using NFTs on WAXP to push through normal NFL "Drafts" and make it a fun game. Winning massive money prizes are nice as well. Smiley

[Dread Pirate Roberts]

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

yes it is possible if there is really a business that involves this NFT system in their business. may involve real investors such as buying assets or investments. it's very possible. and also back again from the purpose of the NFT it was made for. for digital proof or to get investment profit? because most people buy NFT nowadays with one goal to get more profit .

[andireynold98]

I do not see why not. When can records be created as NFTs. NFTs are young still. Who knows where they will go. Assuming governments finally start accepting Crypto then NFTs will be a great use case for records. You could have your passport, health card and information stored as NFTs on the blockchain. this is probably not the intrinsic you were going for, but hopefully doing it in a "green" blockchain would help with physical records/papers.
From a current platform side of things, it is really fun to watch how some companies are doing with NFTs. The biggest use case currently is NFT related gaming. I love seeing projects like NFT Draft coming out (later this week) that are using NFTs on WAXP to push through normal NFL "Drafts" and make it a fun game. Winning massive money prizes are nice as well. Smiley

Woaaah i never think to this, yes this will be huge if governments and also whole worlds accept this NFT. So yeah better get to go first before it's too late. NFT Draft really great with their players that have rarity on each cards. I already have bunch of cards i think i will join to their tournament too that was insane with the great chance to grab those total prize up to $15k. Check this out guys and make sure to do own research first.

[Brus123]

That's right that we think about NFTs as entertainment now. I don’t see the real value of NFT-pictures and different art. Of course, some collectors do find such art very valuable. But I know that NFTs can be used in other spheres. For example, they can help set business processes, store information, transfer documents, give access keys and tokenize physical assets.

[magnum1010]

At the moment, we appear to be witnessing something resembling a race to create the most perfect and valuable NFT.

Developers and artists around the world are publishing their best effort to create an NFT worth millions.

One thing we have not yet seen are NFTs with attempts at intrinsic value (aside from the typical exclusiveness found in collectibles and art pieces).

NFTs backed by gold or commodities like oil. NFTs backed by intrinsic data or information in an attempt to increase their value.

We have seen stablecoins like tether back their token with USD reserves in an effort to back their digital asset with intrinsic value.

Could we perhaps someday see NFTs follow similar practices?

I think that NFTs will be much more valuable in the future when devs adopt them to store big data. I haven’t heard about the idea of collateralizing NFTs by commodities. But if they will be used for tokenization things from the real world, for registers etc. They will be already collateralised, but they will be used between partners and not to be sold on marketplaces so it will not be an investment any more.

[Mariaverde]

I do not see why not. When can records be created as NFTs. NFTs are young still. Who knows where they will go. Assuming governments finally start accepting Crypto then NFTs will be a great use case for records. You could have your passport, health card and information stored as NFTs on the blockchain. this is probably not the intrinsic you were going for, but hopefully doing it in a "green" blockchain would help with physical records/papers.
From a current platform side of things, it is really fun to watch how some companies are doing with NFTs. The biggest use case currently is NFT related gaming. I love seeing projects like NFT Draft coming out (later this week) that are using NFTs on WAXP to push through normal NFL "Drafts" and make it a fun game. Winning massive money prizes are nice as well. Smiley

NFT Draft is a new fantasy football project. Their cards have utility in that they can earn their owners large amounts of money. Also to encourage users to buy new packs, the cards from every new season will receive a one percent bonus over the previous year.