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Comment by simpsond | Hacker News Reader

Just like baseball cards. That said, there are some interesting use cases where the NFT is paired with off-chain cash flow. See royal.io, where IP rights for music are represented by NFTs and the owner of the NFT receives royalties. I think having a liquid market for that kind of investment is more tractable than a jpeg without real IP rights.

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In regards to the music royalties example, what’s the benefit of using NFTs over whatever systems already exist?

I would say the NFT market places make it easy to buy/sell (liquid). Since contracts are composable it could be sold to a contract with distribution properties so there can be fractional ownership. Programmable money flows.

> Just like baseball cards.

You can certainly see baseball cards (or stamps, Magics cards, whatever) as worthless. The difference being that when you buy a baseball card, (yes a reproducible good, so its value is anybody's guess), you're not buying a link to a baseball card powered by Ethereum, you're buying a tangible product at the very least.

To me the NFT is so intangible as a product that clearly its market is already set to die, the question is who will be holding the bag and who will make millions.

Who cares if an asset is tangible? There's really not that much difference between being able to own and show off a CSGO skin vs a baseball card.

For stocks most people prefer owning an intangible version of it. Very few people want an actual certificate saying they own it.

Valve could shut down all the counterstrike servers by tomorrow rendering your skin worthless.

The value of my baseball card might fluctuate but at least it's existence doesn't depend on the availability of servers outside my control.

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