Money Moral Dilemma - Invested in NFTs with a friend

Fernendo321

Scotch_Bonnet_ said:

Well, she agreed to the deal before you broke the eggs!

Exactly it's a classic case of agreeing to a deal then trying to change it when it doesn't go your way but if it went her way I have the feeling I wouldn't be getting a bird from her.

I tried to mentally prepare myself for the possibility that I might the one who gets the common dinos.  I even said to her knowing my luck I'll get the crap ones but that's fine that's just how it goes.

Malthusian

Fernendo321 said:

I don't think it's a great rich quick scheme because I don't think anyone involved expects to get rich at all let alone quickly.  Yes we are hoping for a return on our investment but I don't think anyone is expecting something crazy or unrealistic or to get rich.

Given that the vast majority of these schemes end in total losses for 90%+ of investors, if the potential upside is modest it makes absolutely no sense to invest in it. If the aim is to get rich slowly you might as well stick with mainstream diversified investments where the only realistic possibility of loss is if you panic and cash out during a temporary market fall.

Crypto gets a bad name because the media constantly attack it but I could invest in stocks that are far riskier than some cypto projects equally I could invest in certain crypto that are far risker than stocks.  It depends on what you buy, when you buy it and how you manage risk.

Ultimately all schemes that depend entirely on selling your tokens to someone else for more money later have the same risk.

A lot of NFTs are useless but these apparently have utility as there are developemnts such as play to earn games, concerts, metaverse etc that will require one of these NFTs for access so basically you are buying a lifetime ticket (in NFT form) to future events and whether the ticket (NFT) rises or falls in value depends on how successful the game, concert etc is.

It's like if you buy a ticket to a pop stars concert.  If the pop star and concert turn out to be very popular and in demand you can sell your ticket for more than you paid but if demand is weak you might only be able to sell your ticket at break even point or a loss.

Right, but that doesn't have anything to do with your NFT, or both of you would go to the event and be happy.

Pop concert tickets don't rocket in value because demand for them suddenly jumps unexpectedly and they go to the moon. They are already extremely valuable when the tickets go on sale, but promoters tend to sell tickets at much less than market value because a) half-empty venues are bad for the band's image b) they want young people to be able to attend, not just old rich people who can afford market value.

As an investment they are effectively risk-free, the trouble is that only a small fraction of people who attempt to buy a ticket will get one. Plus concert organisers go to great lengths to stop people selling the tickets. (If they're freely traded it's the worst of both worlds: only old rich men go to the concert and the organisers don't get their money.)

No-one is going to organise an event and give free entry to crypto bagholders when they could sell tickets for fiat. NFT holders aren't interested in going to concerts and events, they are interested in number go up, like your friend.

Fernendo321

Malthusian said:

Fernendo321 said:

I don't think it's a great rich quick scheme because I don't think anyone involved expects to get rich at all let alone quickly.  Yes we are hoping for a return on our investment but I don't think anyone is expecting something crazy or unrealistic or to get rich.

Given that the vast majority of these schemes end in total losses for 90%+ of investors, if the potential upside is modest it makes absolutely no sense to invest in it. If the aim is to get rich slowly you might as well stick with mainstream diversified investments where the only realistic possibility of loss is if you panic and cash out during a temporary market fall.  

I agree that the majority of cryptocurrency projects are rubbish you have to pick carefully.  60% of restaurants fail 1 in year resulting in total losses and 80% fail within 5 years yet it's still possible and reasonable to invest in a good restaurant.

Crypto gets a bad name because the media constantly attack it but I could invest in stocks that are far riskier than some cypto projects equally I could invest in certain crypto that are far risker than stocks.  It depends on what you buy, when you buy it and how you manage risk.

Ultimately all schemes that depend entirely on selling your tokens to someone else for more money later have the same risk.   

This scheme doesn't depend entirely on selling your tokens to someone else for more money later.   There are "dividend payments" so you could hold your tokens without selling and make money back through dividends (each sale has a 6% commission and part of that is distributed to holders).

A lot of NFTs are useless but these apparently have utility as there are developemnts such as play to earn games, concerts, metaverse etc that will require one of these NFTs for access so basically you are buying a lifetime ticket (in NFT form) to future events and whether the ticket (NFT) rises or falls in value depends on how successful the game, concert etc is.

It's like if you buy a ticket to a pop stars concert.  If the pop star and concert turn out to be very popular and in demand you can sell your ticket for more than you paid but if demand is weak you might only be able to sell your ticket at break even point or a loss.

Right, but that doesn't have anything to do with your NFT, or both of you would go to the event and be happy.

We aren't talking about a single event we are talking about a series of events / projects / games.

Pop concert tickets don't rocket in value because demand for them suddenly jumps unexpectedly and they go to the moon. They are already extremely valuable when the tickets go on sale, but promoters tend to sell tickets at much less than market value because a) half-empty venues are bad for the band's image b) they want young people to be able to attend, not just old rich people who can afford market value.

As an investment they are effectively risk-free, the trouble is that only a small fraction of people who attempt to buy a ticket will get one. Plus concert organisers go to great lengths to stop people selling the tickets. (If they're freely traded it's the worst of both worlds: only old rich men go to the concert and the organisers don't get their money.)

No-one is going to organise an event and give free entry to crypto bagholders when they could sell tickets for fiat. NFT holders aren't interested in going to concerts and events, they are interested in number go up, like your friend.

It's metaverse games, concerts, events not real world events hence the need for an NFT "ticket" for access.  If they are successful in building their games, metaverse concerts etc.   The NFTs will most likely be sold at the current price generating divided payments or sold at a higher price generating profits for the sellers.

Thanks to everyone for your feedback I will take everything you have said onboard.

Pollycat

Fernendo321 said:

Thanks to everyone for your feedback I will take everything you have said onboard.

So what are you going to do?

Fernendo321

Pollycat said:

Fernendo321 said:

Thanks to everyone for your feedback I will take everything you have said onboard.

So what are you going to do?

I'm going to offer my friend something she needs that's worth $500 as a peace offering.  I don't think it will work but it's worth a try.  She was effectively asking for an NFT for $500 that's worth a $1000 so we will see.

I will also take on what everyone has said about crypto / NFTs and proceed much more cautiously in the future.