Joshua Henslee on benefits and prices: The offer and prices of NFTs are too high
With the prices of digital currencies and NFTs falling, BSV developer and thought leader Joshua Henslee shared his thoughts on the current situation, supply and demand dynamics in the market, utility NFTs and more.
NFTs in an economic environment with high inflation
Henslee begins by pointing out the obvious; prices of just about everything in the “real world” are rising rapidly, and people’s economic calculations have changed. He says it costs $ 40 to fill the car with gasoline these days, whereas in the past it cost $ 25.
Obviously, in this situation, people have less disposable income to waste on worthless NFTs like Bored Apes. Inflationary pressures undoubtedly contribute to the crater prices of digital currencies and art-based NFTs we have seen in recent months.
Supply, demand and utility in the NFT market
Henslee compares NFTs to trading cards, but points out that in most cases there is a fundamental difference – trading cards have an inherent benefit because they can always be used to play a game. He emphasizes that the tool will be crucial in the future, and that NFTs that do not offer it are likely to be worthless.
Henslee comments on the supply and demand dynamics in NFT markets and reminds us that demand is reduced if supply is too large or the price is too high. This can be fixed by reducing combustion demand, issuing fewer NFTs or lowering prices to make them more attractive.
“People will buy them when the price is low enough,” says Henslee. He points to a price of 0.01 BSV or less to make NFTs really attractive in the sense that most people will buy them without any extra thought because it is such a small amount of money. The balance, he tells us, is to make sure everyone has access, reward the buyers of the NFTs with a little extra, and get the supply right. He points to his own inability to get the right offer and how he has learned a lot from that experience.
“If you are going to do this in an inflationary environment, both price and supply must be lower,” he tells us.
Delights NFT buyers and provides extra value
It seems that giving actual value is something the majority of the digital currency industry has a hard time understanding. Nevertheless, Henslee rightly points out that it is the key to success in the NFT area as much as elsewhere.
“When expectations are low and exceeded, people are happy,” he tells us, noting that keeping NFTs gives you something extra, such as special access or makes you a part of something, it creates real value and utility. He sees the trend slowly changing as people wake up to the inherent worthlessness of many overpriced JPEGs and discover the true potential of NFTs.
In conclusion, he tells us that giving value and letting the market decide the prices is really all that is needed. He emphasizes the irony of influencing NFTs just to take advantage of a price pump. If you do, the project is more likely to fail, while providing real value makes it more likely that prices will actually increase.
Key takeaway: Benefit is everything
It’s a message that both Joshua Henslee and others in the BSV ecosystem have been shouting from rooftops for years, and now it’s finally starting to sink in; utility is the key and is the only thing that will survive in the long run.
While the industry is full of scammers, scammers and price pumps, those who provide real value to buyers of all kinds of tokens will succeed over a longer period of time. With the astonishingly low transaction prices and chain storage on Bitcoin SV, we are witnessing a wave of useful NFTs coming on the scene. This will unlock the true potential of non-fungible tokens over the next few years.
See: Presentation of BSV Global Blockchain Convention, Factory: Powering Markets for BSV, NFTs & Other Digital Assets
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