Ethereum's New Bubble: Non-Fungible Tokens | wtf.

how would you like to make three million

dollars in one day

releasing a digital card that doesn't

actually exist in reality but is a

digital card you

created and you were able to raise over

three million dollars

simply by allowing people to purchase

rights

to a share of that card yes folks

that is exactly what happened to your

favorite boy on

youtube who made over three million

dollars in just one day

and that boy is not meet kevin it's

actually logan paul

logan paul made over three million

dollars in one day

selling rights or ownership rights to

something

totally digital artwork that he created

out of thin air which sounds potentially

incredibly ridiculous

but then when you ask yourself wait a

minute yeah maybe

logan paul sold digital art that doesn't

exist

and people are paying for it what

differentiates that

from bitcoin which is just something

that we have digitally created i can't

go

hold a bitcoin just like i can't hold

the art that logan paul is selling and

so

when you start putting your mind to this

you start wondering oh my gosh

what ridiculous world have we gotten to

where all of a sudden we are literally

so desperate to find places to store our

cash and our money

that we will resort to buying trading

card pictures

that somebody just created of themselves

yes

okay well so understand what the heck is

happening here and to try to understand

or

unpackage all of this madness i think

it's helpful to start by

understanding what the heck fungible is

uh it kind of makes me think of fungus

which

is potentially appropriate because

there's a good chance this is gonna grow

like a fungus

and it could end up stinking hardcore in

the long run

we'll see i'm um well i'll save my

conclusion here

here's the thing this right here is a

non-fungible token

this right here is a fungible token do

you see the difference

the difference is much like a barrel of

oil a bushel of

wheat or a bucket of corn i don't know

if they're measured in buckets but we'll

go with bucket of corn

bitcoin are fungible which is another

fancy way of saying

interchangeable every one bitcoin is the

same as another bitcoin

but enter into the space something new

a non-fungible token

in english a non-interchangeable token

or in simplified

english a token that is different from

other tokens

and so each other token can represent

ownership shares

in something else so for example we

could have

100 000 tokens that

are shares of the mona lisa

so if somebody owns 51 000 of the tokens

available for mona lisa

they would have a majority ownership of

the mona lisa

and so this is where all of a sudden we

can create

tokens to represent shares or partial

interest in digital assets or

potentially even physical assets

by representing those shares with tokens

we're basically

tokenizing creations you want to buy

tokens of

socks there's an option for you you want

to buy tokens in real estate

it's coming you want to buy tokens of

the mona lisa or a unique trading card

mona lisa probably coming

logan paul it's available for you so

here is a picture of

logan paul next to his digital creation

his digital art

which by the way i met logan paul back

in 2016

at vidcon that was right before i got

banned from vidcon but we won't go there

anyway logan paul said that i should do

voice over animations because apparently

i have a voice for voiceover animations

no you should do

voiceover animations no voiceover

animation yeah you should thank you for

that i got a very distinct voice just

dope

i don't know about that let me know what

you think down below now there are two

ways

to create art one is a physical art so

for example

i could draw a nice uh portrait

and maybe i could sign it and say i drew

this

and i can sell ownership in this

piece of art here i could say all right

folks i'm going to sell

ownership shares of this for

ten dollars a piece and i'm going to

sell 10

000 of them that would value this

cardboard piece here at a hundred

thousand dollars

if i sold all of those at ten dollars

per pop

and then i could say hey you know what

you don't have to take care of it

i'll protect this i'll hang it up right

here

you know so that way every time you

watch a meet kevin video

you get to see your

art which you own a share of and maybe

over time

if my reputation improves which

obviously i hope it does

my art will become more valuable and

maybe in the future

somebody will buy your right

to my 100 000 artwork

for twice what you paid for it or three

times what you paid for it remember you

paid ten dollars a share

or ten dollars per coin for this maybe

in the future it'll be worth 20 30 40

because people gotta have their coins of

kevin's anime drawing

but it doesn't even have to be physical

i mean if it's physical i gotta protect

it from damage i gotta insure it

i gotta do a lot of things to make sure

i can protect that piece of paper i mean

what if there's a fire and then the fire

sprinklers go off and there's an

earthquake

who knows what if somebody breaks in and

steals it this is a

very real and very recent example that

has caused an insane

stir over people really throughout the

creator space

youtubers people on clubhouse people on

twitter

former athletes coming up with their own

nfts to basically sell you the rights

or partial rights to whatever the heck

they want to sell you

maybe i'm going to start selling shares

of this mouse

or maybe this headphone right here or

a digital picture of this mouse or

headphone

or the diamond hand guy hey we should

all own a share of the diamond hand guy

what should we sell this for what should

we value this at point is

a lot is about to come to the market in

terms of nfts

non-fungible tokens and what's really

interesting about this is

in my opinion the excitement to

chase investments in non-fungible tokens

is really a little bit of a warning sign

that maybe just maybe we have

too much enthusiasm in the market can

only go up that the market can't go down

and it doesn't matter what you invest in

your investment will always go

up this is a little bit of a dangerous

red flag

that essentially we could be valuing

digital art that was just created

at multi millions of dollars

i personally am a little bit concerned

that we could see

an insane balloon in the valuations

of non-fungible tokens and then in the

event there's some form of future

market correction where all of a sudden

tesla stock goes down eight percent or

who knows maybe cciv comes out at a

different valuation than

expected and the stock sells off 25 or

30 then there could be a crash real fast

and real hard kind of like bitcoin

losing 90

back in the day that'll never happen

again but it's not just a

market risk that non-fungible tokens

could go down in value

there's also entirely the potential risk

that

wait a minute what if logan paul just

says hey that one went really well

let me just make five more pieces of

digital art how do we value digital art

i mean i suppose much the same way we

value bitcoin except we know that

bitcoin has a limited supply and in

theory

logan paul could just keep creating

artwork and

until basically people stop buying it

but then what makes one piece of artwork

more valuable than the other we can't

really evaluate the condition of the

art because it's digital and there is no

limited supply of not only logan paul

creations but there's also no limited

supply of

anyone's creations i can create a

trading card as well and

sell you all shares of it so personally

i'm a little bit skeptical of what could

end up becoming and we'll see i mean

today is

uh feb what is today today is february

22nd

monday in 2021 it wouldn't shock me

that in a year from now a lot of people

got

really really really really really rich

off non-fungible tokens

and a whole lot more people

ended up holding the bag

of some colorful digital assets that had

no limited supply at all

and we end up having a much larger

catastrophe

and lack of wealth building especially

amongst the younger generations

millennials or zs or whatever it doesn't

really matter

but people who haven't been able to

build wealth through conventional means

maybe stocks or real estate

or have built wealth through those means

but got

seduced into non-fungible tokens and all

of a sudden we wrote a bubble wave and

uh oops when it came time for liquidity

we weren't really able to sell because

why would somebody buy a non-fungible

token in a market crash

there's no expectation that those values

could actually rebound in the future

because

a creator could just create more

non-fungible tokenized

assets personally bottom line

i'm a little bit concerned about all of

this i'm

in awe that this is a possibility that

this

kind of thing exists now it doesn't

surprise me that this exists i mean i do

think it'd be cool to own a piece of the

mona lisa or a

share of it i don't really see how it's

different from somebody creating like

an s-corporation and saying we're going

to divide this up into 100 shareholders

who wants to own a piece of the mona

lisa

it's just more entertaining and sexy

because it's

a non-fungible token and it's

digitalized and that's blockchain based

which is all really sexy right now but

like if somebody came to me and said hey

kevin we have an s corp that owns the

mona lisa do you want to buy 1 100th of

the mona lisa

i don't think i would buy it but for

some reason if somebody says hey kevin

do you want to buy 1 100

of the mona lisa in the form of a

non-fungible token it actually seems

interesting

and to me that's a very weird

fundamental mind twist

so these are just my first thoughts on

this i have to say i'm legitimately

confused and surprised a little dazed

and i'm curious to know what your

thoughts are

what do you think about nfts and

if you took a shot for every time i said

fungible in this video

you'd have some problems thank you so

much for watching folks

we'll see in the next video i'm going to

keep an eye on this uh these

non-fungible token developments and

i'll report back with more information

on this let me know what you think down

below thanks for watching

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