As a Bitcoin supporter, Muneeb Ali commented on the hype surrounding NFT. On the one hand, he understands critics who consider it absurd to buy JPEG images for millions of dollars. On the other hand, it’s not just about the image, because NFTs prove the status of a participant in the cryptocurrency space and beyond, Ali argues. Many proponents of collectible tokens believe they add value to tokenized original items.
Ali cited the NFT Bored Ape Yacht Club as an example, which are considered a “pass” to the gated community of collectors. Privileges such as access to exclusive events, free additional NFTs that can be resold, and branded merchandise are available to them. Collectible tokens have a certain value to their owners and benefit them.
According to Ali, this is exactly the potential of NFTs, as tokenized assets can find a wide range of real-life uses. More superficial tokens will give way to “serious” NFTs that can be used for real estate transactions or as a stock certificate. The NFT infrastructure allows industries from the physical world to incarnate online, Ali added. This happens through decentralized, open-source technology, not under the “hood” of technology giants.
“NFT is one of those things that is easy to ridicule and dismiss as nothing. But Bitcoin, as important as it is, is a fungible asset. And non-interchangeable assets are much broader because they can be represented by anything,” Ali said.
Earlier, the Blockstack executive said that not all decentralized applications should use blockchain unless absolutely necessary.