What does Demosceners thinking about NFT?

category: general [glöplog]
added on the 2022-01-24 01:05:05 by v3nom v3nom
And yes, the "velocity of money" dropped sharply due to Covid, so we surely have a problem. But well, it's hard to say if crypto/NFT is any solution here.

That's a real problem for cryptocurrencies actually to be an actual 'currency'. (Apart from the scepsis :P) Due to the crazy value swings they're used as buy-and-hold investments rather than quick money exchange and thus have a low velocity. Slight inflation is usually ideal for keeping velocity high, that's why central banks love a ~1-2% annual inflation on conventional money. The low velocity is also helped by the fact they have high transaction costs that they're currently not interesting as an ubiquitous payment alternative to conventional money.