Renowned investor and the most acerbic Bitcoin (BTC) critic, Peter Schiff, has taken to Twitter to slam the developing NFT mania. To better illustrate his take, Mr. Schiff remembered an old joke about one shortsighted dog seller.
Ethereum and NFTs are overpriced
According to Mr. Schiff, both non-fungible tokens and Ethereum (ETH) coins are "overpriced." That, trading one sort of overpriced asset against another, resembles an old joke.
Ether and NFT traders look like pet owners trying to sell their dogs for $10,000. Meanwhile, interest in buying such an expensive pet is nonexistent at the moment. As a result, the dog seller has to exchange his dog for two $5,000 cats.
Even Schiff's long-term opponent, Bitcoin (BTC) evangelist and host of the What Bitcoin Did podcast Peter McCormack, found this position of "Dr. Doom" funny.
NFT mania: $70 million for JPG file
Non-fungible tokens are unique blockchain-based assets with some valuable properties. Typically, this concept is utilized for the "tokenization" of information: artwork, texts and even moments.
While the first wave of NFT mania associated with CryptoKitties items made this model famous in 2017, the ongoing hype is going to create a number of new multimillionaires. In 2020, NFTs become speculative assets.
As covered by U.Today previously, the NFT, "The First 5000 days" by European graphic designer Mike Winkelmann (a.k.a. Beeple), was purchased for almost $70 million.
This masterpiece is now owned by MetaKovan, the pseudonymous founder of NFT fund Metapurse. The buyer is certain that this NFT will be worth $1 billion one day.