Non-fungible tokens or NFTs are unique digital assets that exist on a blockchain. Each one is a unique code that represents ownership of an asset. Non-fungible tokens have also created a market for stolen artwork, enabling thieves to profit from others’ work. NFTs are the greatest tech trend so far this decade, but there’s another side of the coin. Some people hate NFTs. Many people are part of that crowd, and it’s not just going against the current thing; there are multiple reasons for it.
The Costs of Minting NFTs
If you’re a beginner trying to get into the NFT landscape, minting images on a blockchain like Ethereum can be daunting. Especially because there are often hidden fees involved that could slice any profit you were hoping to make. The base cost of minting varies from under US$1 to US$1000. There’s also something called a “gas fee.” This is when the user has to pay extra for the increased computer power required.
Original Creators are Getting Cheated
Contrary to the notion that NFTs benefit original creators by enabling them to monetize their creations themselves without the involvement of third-party platforms that usurp much of their earnings through fees and the like, there is an argument to be made that the unregulated nature of minting NFTs allows bad actors to tokenize other peoples’ creations without their permission.
Not Being Environment-friendly
One of the main sources of criticism towards NFTs is their carbon footprint. It might look a little silly if you don’t know the context, though. NFTs, at their core, are tokens stored on a blockchain. And while that can be any blockchain that supports them, the vast majority are stored on the Ethereum blockchain.
NFTs are Unregulated
One of the core attributes of NFTs is that, like cryptocurrencies, they are decentralized and unregulated. In the eyes of proof-of-work proponents, this ensures a level playing field for all involved parties as transactions are created and verified through a transparent, public ledger, such as Ethereum’s blockchain in the case of many NFTs.
Every day, when you scroll through your social media feed, you’ll likely come across a celebrity you follow posting about their dive into NFTs. And many of them seem way too enthusiastic about them. Former Chelsea F.C. captain John Terry got in on the craze in early 2022 by promoting the Ape Kids Football Club. After making his chums sign up, the average price of the NFTs fell from $656 to $65 in a month.
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