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A: I think I get it now. I think I finally see! The entire point of an NFT is to put artificial limits — but universally enforced limits — on something that is cheap, almost effortless, to make!
A: If I spend five minutes creating a slapdash graphic and associate it with 100 different smart contracts, I’ve created scarcity without being constrained by the forces that usually determine whether or not something is scarce!
A: Usually scarcity means that producing the product is difficult and expensive, which is what drives up prices, but NFTs have solved that problem by making it part of the rules, rather than an effect of the natural pressures of supply and demand!
A: And any time I want, I can go into the original graphic, change one color on one piece of the image, and voila! I can create 100 new smart contracts for the brand new NFT and do it all over again!
B: Congratulations. You now understand NFTs.
And now that people are figuring that out the prices of NFTs is dropping like a rock from a cliff.