Why the NFT Market Will Collapse
Source: Project Syndicate
Patrick Reinmoeller and Karl Schmedders predicted the collapse of the NFT market evoking a number of reasons. Not, as many believed, but because of environmental concerns; but because the current NFT boom is built on very shaky foundations.
NFTs offer ownership of a digital asset, but not the right to prevent others from using its digital copies Identifying illegitimate use, and pursuing and prosecuting infringement make it nearly impossible to enforce the copyright or deter misuse. The price volatility of the cryptocurrencies underpinning the NFT market is a central issue as well.
NFTs are being made and sold with infant technologies, blockchains and cryptocurrencies, and the value of NFTs may well evaporate if the next wave of more advanced technologies that supersedes crypto or blockchain is incompatible with secure NFT ownership.
Finally, as we have seen in recent months, changing macroeconomic conditions negatively affect the price of alternative assets including NFTs.