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Chris (00:00):
Record. Okay, it's going. Here we go then. Hi there guys, and welcome to this week's addition of the Weiss Crypto Sunday Special. With me your host Chris Coney. With me today is the lovely Marija. Marja welcome back to the Sunday Special.
Marija (00:17):
Thanks for having me Chris, hi.
Chris (00:19):
Thank you for being here. So today we're going to discuss going a bit deeper into NFTs. But I've called this episode From $100 million Digital Art to Playable NFTs. That's about as concise as I can put the thoughts that I was having when I came up with this idea. So let's start general and then go more specific. So when I started thinking about this I thought okay, I'm always going down to the root causes of things. Like simplifying what's the base of it all? And investing all we ever talk about is price basically. That's the thing we're always discussing, price. So that's one thing, but then the next level up from that is, well there is always two forces acting on the price. It could be the price of anything. There's something pushing the price down at any one time, and things pushing the price up at any one time. Its like supply and demand, if there's a stronger force pushing the price up than down, then it goes up. And if there's a stronger force pushing down the nook, it goes down. And that's what we're constantly trying to guess, where is the balance right now, and where is it going to go?
And when we chart it, we're charting it historically, and then we try and use that to project where it's going to go in the future. That would be technical analysis. But then we do fundamental analysis where we see well based on what's happening in the world and the direction we think it's going, where's the price going to go? And what forces are going to act on the price. That's everything has a price. Pretty much everything in the world, but this is about NFTs and digital artworks that we're going to talk about today. Then I started thinking about these two forces, how they act on art. Physical artworks was the example I gave. A canvas painting, a classic like a Van Gogh, not Mozart or whatever I said last time. The thing about physical artworks is that they do decay. They can get damaged and so on. So the classics that were painted in the 1500s, you would expect over the years, that the scarcity of those would increase. Now I know $100 million artworks are... Because people know they're perishable, they're in museums and they are in air tight glass cases just to make sure that they are preserved.
That just makes me think about The Da Vinci Code where they've... Anyway that's what the whole films about. They're trying to slow that process of decay down by preserving it, but accidents happen, thefts happen, stuff like this, so that's just a force, doesn't matter how strong it is, that makes physical artworks more scarce over time. Because they get destroyed in wars or whatever, confiscated by dictators. But that isn't really something that can happen with digital artworks. That's where I started thinking about the distinction between the two. That force where is physical artwork is getting more scarce, that's something that would be increasing the scarcity and pushing the value up over time, but this is something that I think everyone is trying to get their head around about NFTs. And this may even be a problem with valuing art that has always been there. Is that art does go in and out of fashion. So that is an inconsistent demand, and firmly depends on why you are buying the artworks. Let me ask you a question here, I suppose right now one of the most desirable NFT collections are, in my opinion, The CryptoPunks. Will they ever fall out of favor, is what I am thinking. Do you think they'll ever fall out of favor?
Marija (04:06):
I think they will have swings in prices, but I don't think they will ever fall out of favor, because they do represent an important snapshot in history of crypto. And they are one of the first NFTs. They have become some kind of digital flux. Especially if you buy them and you use them as your avatar, your profile pic.
Chris (04:39):
Social, exactly.
Marija (04:42):
Exactly. It tells... Its like you carry a Rolex on your hand, but its even more [crosstalk 00:04:51] prestigious and cool because not many people know about NFTs and its a signal for recognition.
Chris (05:05):
You said there'll be swings in prices, but why, why will they?
Marija (05:10):
Because the NFT market, like any other market, has its bullish and bearish period. Right now we are in a bullish period for NFTs.
Chris (05:24):
Okay. Bullish and bearish periods based on what though? Because that kind of carves back to what I was just saying about art going in and out of fashion. When I was talking about, say a specific collection or styles, like Jackson Pollock. Do you know who that is?
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