Are physical collectibles better than NFT?

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2023-01-25 06:13:43

In recent years, technology blockchain appeared and helped expand the collectibles market with NFT (Non-fungible token – non-fungible token). Through blockchain, NFT has solved many of the problems that collectors face with real-life items.

“I think the NFT’s collection aspect could completely turn the art, music and film industry upside down.”

Mark Cuban – famous American billionaire, shared in the podcast called The Quest.

The things we hold in our hands

With physical collectibles, we can hold them in our hands. Additionally, item owners can see, feel, and even smell them if they wish. The items in the physical collection such as toys, antique coins, stamps… all have their own unique characteristics and applicability. That creates attraction and stimulates the desire to own collectors. For example, Pokémon cards or Yu-Gi-Oh! familiar of the 9x generation, the features on them (images, printing errors, rarity, functions…) create their own value and are highly collectible.

The 1999 First Edition Shadowless Holographic Charizard card is valued at about 150 ~ 250,000 USD. Image source: TMZ

Ignore many views that investing in cards is wasteful and useless. There are already many collectors holding a “golden nugget” when owning rare cards worth tens of billions of dong. Rare cards have since become extremely valuable assets.

Many people also realize the value of antique and rare items, so they find ways to cherish everything they own. The owners of the above items hope they will bring great value in the future. Because the vestiges of time imprinted on antiques in general bring their own value, attraction and feeling to each person, which the current NFT cannot have. Especially for the works of artists from centuries ago like Leonardo da Vinci or Vangogh. The value of those paintings no longer stops at the material limit.

“Money can be earned, but paintings cannot be repainted.”

Famous broker William Acquavella.

Also, the physical collection is more tangible than the NFT. They can be directly seen, touched and felt by the user that NFT has not yet been able to fully convey. With the above factors, many people feel not really satisfied with what NFT brings.

NFT gives users a new experience

Emerging since 2020, NFT has brought crypto users to a new horizon where artists can unleash their creativity. NFT has been experimented in many fields from game items, certificates, art to audio and video formats… In the blockchain world, NFT can transform from anything. The only limit is the imagination of the creator.

The world of NFT is diverse and rich.

With the arrival of NFT, artists or content creators have more ways to make money and build their own brands.

“In addition to new opportunities, NFT helps lesser-known artists distribute their work more widely.”

Paris Hilton – Pop star

Similar to real-life items, NFT offers its own value due to the exclusivity, limitations, and applications of each token. Based on the above characteristics and the heat of the market, there are NFT collections that are priced very high and bring “huge” profits for creators. There are works worth just a few tens of dollars such as logos or avatars, but there are also NFT paintings that are valued at millions of dollars. Typically, the work “Everydays: The First 5,000 Days” was valued at more than 89 million USD.

“NFT will create the next Renaissance art.”

Changpeng Zhao (CZ) – CEO of Binance

There have been mixed opinions about the applicability and value of NFT. Many investors believe that NFT is just a bubble created by the big guys themselves, in order to increase the token value of the project.

“Expensive digital imaging of monkeys would greatly improve the world.”

Bill Gates mocked BAYC at the event in California, USA.

Bored Apes Yacht Club – the object mentioned in the statement of Bill Gates. Each NFT in the collection has been valued at millions of dollars. Image source: Binance

When it comes to collectors, NFT is experienced by them in many different ways, depending on the type of token. Although not able to bring about realistic feelings, stimulating all the senses like physical collections, NFT also has many outstanding features that are worth noting:

High security and fast authentication

Unlike physical products that can be tampered with, the uniqueness of NFTs when created on the blockchain makes them impossible to alter or forge.

NFT possesses the properties of Blockchain

One of the reasons why physical collectibles are still popular is because people love the exclusivity they bring. A sense of exclusivity has long been an important determinant of collector behavior. However, the authentication to ensure the exclusivity (authenticity, damage …) of the physical product takes a long time to wait. For example, to verify a treasure, a collector needs to send the item to a professional verification service and wait for an expert to examine it.

With tokens in the NFT collection, the history of assets is easily verified on blockchain technology. Through the use of blockchain exploreranyone can know when, by whom, and how many tokens are available that NFT collection was created.

NFT information is retrieved on Etherscan.

Reduced damage and durable over the years

NFT is completely transacted on the blockchain so there is no loss caused by transport. Physical products inevitably experience general wear and tear over time, no matter how well their owners take care of them. NFT is created on the blockchain so it cannot be wrinkled, dirty, scratched or worn out over the years.

However, this feature can be a minus for NFTs, as they do not possess the embellishment of time that physical products bring.

Simple Mint, unlimited form

As long as there is internet, anyone and anywhere in the world can mint NFT easily through simple operations. NFT doesn’t just stop at works of art, in-game objects…we can tokenize many things and bring high value. For example, Jack Dorsey – the founder of Twitter NFT made his first tweet and was paid millions of dollars.

The value of NFTs is not only financial, they also support content creators through digital copyright storage. Thereby, NFT creates countless different uses and gradually puts a foot in the real world.

Bridge the digital world and real life?

When it comes to NFTs, most people think they are placed within the framework of the blockchain. But can the NFT become a physical product? When in recent times, the minted NFT can be attached to an object. Since then, the applicability of NFT has been enhanced in the real world.

NFTs will not compete with physical collectibles. Manufacturing or issuers can leverage NFT as a way to digitize ownership of collectibles. Manufacturers can link their product’s serial number or connect the physical item to the NFT using NFC (Near-Field Communications) technology or a QR code. Thereby, assist in verifying associated products and tracking their history.

NFTs can also act as passports to experience the services they represent. Through membership tied to the NFT, service distributors can control the privileges they possess. For example, ticket sales or celebrity meet-and-greet opportunities, NFT is becoming the bridge to transform the in-person experience.

Many NFTs under popular projects like Bored Ape Yacht Club or Doodles also allow their owners to attend exclusive parties or get-togethers. Users are often asked to verify ownership of a particular NFT and invite tickets are airdropped to the wallet. As in entrepreneur Gary Vaynerchuck’s VeeCon conference, attendees need to have VeeFriends NFT in their crypto wallet and present an airdropped invitation ticket at the door.

VeeFriends NFT on OpenSea

Although we can’t touch all the senses in the real world like physical collections, we can see the development of NFT is somewhat impacting the world around.

“There will come a day when you have your own cars and an NFT version of them.”

Tom Bilyeu – CEO of Impact Theory Studios

For example, NFT has been applied to convert actual products. In October 2022, Azuki’s NFT skateboards were valued at millions of dollars, when they could be converted to a real-life skateboard.

Or more recently, the Japanese company Horizon is planning to issue NFTs that store scent information that can be played 5 times per token through a dedicated device.

Use NFT containing scents through dedicated apps and products. Image source: Bittimes

NFT is growing and creating a certain place in the lives of people around the world. For many people, the NFT is a great invention. But it will be argued that NFTs are too abstract and they do not convey real ownership of the artwork or other collectibles.

There’s still a lot of work to be done with NFTs so they can reach every angle that physical collections have to offer. But regardless of the type, we need to research carefully before investing to avoid receiving undue disappointment.

#physical #collectibles #NFT

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