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't mean that the digital revolution hasn'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'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's "flex" utility...
5/ When I started down the NFT rabbit-hole, I didn't care for CP's at all. I thought they were too expensive and I didn'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's CP avatars more. The range went from elites to some more common. But it'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't spend the thousands of dollars bc of the watch's utility value. A simple $5 watch could perform the same utility. It is to "flex" their status. To convey, "Hey look, I'm well off, I can afford this expensive watch"
8/ So how can someone do that digitally in the crypto world today? I can't post a picture of that watch and say "Hey look at my expensive watch guys!" First off it's cheesy, and secondly, where's the fun if you can't verify that it's real, and it'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'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'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
