Authors Tascha
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Me: I bought a diamond yesterday.
Mom: Nice. They’re good investments.
Me: I’m going to smash it & sell it as a NFT.
Mom: Say again?
So I tried to convince my mother (accountant w/ 30 yr experience) that NFT is a better asset than diamond.
Did I succeed? Let’s find out 👇
First off, if you’re out of loop, this all started b/c I’m doing an experiment inspired by all the brilliant comments people made on this tweet of
I decided to buy a real diamond, create an associated NFT, destroy the diamond, and see if the NFT retains value. I told my mother about this on the phone. Like everyone else, she immediately went— this is crazy.
Mom: So if I buy this NFT, are you shipping me the diamond?
Me: No. Diamond’ll be destroyed.
Mom: Then what am I buying??
Me: You’re buying the “asset” function of this diamond. This fuction is transferred to the NFT from the diamond.
Mom: Explain.
Me: A diamond has two functions:
1/ real-world utility as jewelry & industrial tool
2/ store-of-value asset
When I create a NFT for the diamond, which is a token in a computer network that denotes an amount of value & ownership, I transfer function 2 to the NFT.
Mom: Nice. They’re good investments.
Me: I’m going to smash it & sell it as a NFT.
Mom: Say again?
So I tried to convince my mother (accountant w/ 30 yr experience) that NFT is a better asset than diamond.
Did I succeed? Let’s find out 👇
First off, if you’re out of loop, this all started b/c I’m doing an experiment inspired by all the brilliant comments people made on this tweet of
If you make a NFT of a real diamond, and the diamond itself gets destroyed in a fire tomorrow, you still have the same asset.
— Tascha (@RealNatashaChe) August 22, 2021
Because the token still exists and is in limited supply just as before. Nothing has changed.
What NFT is doing to the concept of asset, few understand.
I decided to buy a real diamond, create an associated NFT, destroy the diamond, and see if the NFT retains value. I told my mother about this on the phone. Like everyone else, she immediately went— this is crazy.
Mom: So if I buy this NFT, are you shipping me the diamond?
Me: No. Diamond’ll be destroyed.
Mom: Then what am I buying??
Me: You’re buying the “asset” function of this diamond. This fuction is transferred to the NFT from the diamond.
Mom: Explain.
Me: A diamond has two functions:
1/ real-world utility as jewelry & industrial tool
2/ store-of-value asset
When I create a NFT for the diamond, which is a token in a computer network that denotes an amount of value & ownership, I transfer function 2 to the NFT.