What the hell are NFT's? Part 3

The images that you attach to the places to represent them do not need to be unique so why does everyone keep saying owning  NFT of a video game thing will allow you to use that thing in other games well that's quite simple it's because people are idiots someone told me if  purchased the NFT of a certain weapon in a certain game then my ownership of it would allow me to take that weapon into another game and use it there this is just straight up wrong different video games are created in different programming languages with different architecture you cannot simply place an asset from one into another imagine putting a  disk into an  it wouldn't work imagine you bought a burger from a burger place you took the receipt to a bowling alley and said want to use the burger bowling ball have the receipt for the burger they'd be confused you don't own the burger bowling ball because they don't use the same receipt system they don't have one your purchase from one place does not guarantee you'll be able to use it in another so why would anyone buy  when they're only usable locally within their own queue systema they don't actually have any inherent value what purpose is there standing in a queue that doesn't go anywhere why have your name associated with a unique placement on a database which is linked to an artwork but does not grant ownership of the artwork well  can see four main reasons people would purchase NFTnumber one they don't understand what they're buying a lot of people think purchasing the NFT  represented by an image means you own the image or buying the NFT represented by a song means you own the song and as we've seen you don't think the majority of naive or younger purchasers fall into this category they're buying without fully understanding what they actually now own the second reason is to sell onwards and this is the main part of the scam because the whole appeal of  NFT is its own digital scarcity remember that's the scarcity of the position in the queue the database variable not the artwork people will assume that they will appreciate in value because they cannot be copied they are  if  buy the NFT represented by an image and then convince someone else this image is desirable and therefore the NFT linked to it is also desirable they'll want to buy it from me for more than paid ll make profit this is what we're seeing with the vast majority of NFT scams popping up companies or individuals minting vast amounts of NFTS and trading them around to generate hype we'll look at insider trading more in a minute the third reason to purchase  NFT is to support the company selling them maybe you directly value the company you want to be a part of history you want to be able to say yeah own  castle that would be cool but again remember you don't own the castle legally you can't say that you do or the fourth reason and this is the saddest one just to be in the community the whole  NFT craze is a giant community bordering on a cult for some people humans want to feel involved and accepted people like to feel they belong to a group so when you see meetups of people who all bought those monkey NFTS it's tribal it's the exclusive group they are in you are not others cannot afford to be in 's a digital flex you are not as wealthy as they are it's the incredibly shallow mindset of showing that they can afford to spend a lot of money on that  therefore they are better than you your desire to join that club increases if you want to be like these people if you value status you have enough money to spend without caring it's the online equivalent of buying a designer shirt we looked earlier at how 0.1 percent of all crypto users hold NFT well it gets even more top-heavy because less than 10 of NFT owners hold around 80 percent of the total wealth of all currently available NFTS so let's cycle back and ask if every trade of NFT is tracked by the blockchain how can anyone get scammed surely you could just find out who the scammer was by looking at the records well yes and while the blockchain tracks trades between online wallets people buying these NFTS don't always do their research imagine you were following  you saw someone bought it for a pound and sold it for five pounds and then that person sold it for 10  20 then 100 then 500.  think wow this thing is desirable need to buy it now and sell it on for my own profit you want a slice of that pie you buy it for 600a then you discover all of those previous trades going up in value have actually been between friends or between the same person with different digital wallets or different companies artificially inflating the price hoping  just like you would fall for it and buy it they've not actually told you to buy it they've also not told you it's going to increase you bought it for a value you were happy for they haven't necessarily scammed you they have tricked  you can claim that this is insider trading to artificially increase desirability and of course that is illegal but who's going to police it does a digital good fall under the jurisdiction of the country it's currently being held in on whatever server or the country it's going to or