Read on Twitter
1/ Why did I purchase a 24 x 24 pixel image yesterday for 140 ETH?!??! (a record in USD)
2/ The world is without a doubt moving more digital over the next few years/decades. Covid has def accelerated this transition, but there is still some work to done, specifically on the tech side of things.
3/ But that doesn& #39;t mean that the digital revolution hasn& #39;t already started. CryptoPunks are the first ever NFT. There were only 10,000 of them ever minted, each with their own sets of attributes.
4/ Because of the known quantities in existence, and the differing rarities, CP& #39;s will trade anywhere between 5 to some estimates as high as 1,000 ETH. But why? Why does this image have any value at all? Because of it& #39;s "flex" utility...
5/ When I started down the NFT rabbit-hole, I didn& #39;t care for CP& #39;s at all. I thought they were too expensive and I didn& #39;t want to be the greater fool. But after spending time in other community discords, everyone kept telling me I needed a CP for the collection.
6/ And as I spent more time on CT and discord, I began to notice people& #39;s CP avatars more. The range went from elites to some more common. But it& #39;s almost like being part of some exclusive club, being a CP owner. Others instantly know the value of certain punks.
7/ When someone buys a Rolex in the real world, they don& #39;t spend the thousands of dollars bc of the watch& #39;s utility value. A simple $5 watch could perform the same utility. It is to "flex" their status. To convey, "Hey look, I& #39;m well off, I can afford this expensive watch"
8/ So how can someone do that digitally in the crypto world today? I can& #39;t post a picture of that watch and say "Hey look at my expensive watch guys!" First off it& #39;s cheesy, and secondly, where& #39;s the fun if you can& #39;t verify that it& #39;s real, and it& #39;s mine.
9/ But with a NFT, by posting it as my avatar on twitter and discord, I can quickly "flex" with a picture. Ownership and authenticity can be quickly verified online. It has the same effect as wearing that Rolex in real life, but digitally.
10/ And this is a phenomenon that will build on itself. Sure, people will spend money on their lambo& #39;s in real life, but there will be a desire and need to buy something expensive in the digital realm. Something rare. Something easily recognizable. Something expensive.
11/ If you& #39;re looking for a high beta play on BTC/ETH, you want to be buying AAA caliber NFT projects. And as of right now, CryptoPunks is at the top of that list. @larvalabs
