There are many reasons to why NFTs are hated by most average people.
It’s normal to wonder why people hate NFTs, how owning an NFT can be a bad crypto investment strategy.
In this article, we’ll go in-depth on the common causes behind why people hate NFTs (Non-Fungible Tokens) so much.
Non-fungible tokens have a formidable reputation for repairing, since missing most promises this new technology had for society.
Let’s dive in and learn why NFTs are hated.
Why NFTs are hated
Hate is a strong word that exists everywhere, and it’s essential to know that it shows up in many forms.
Especially envy or jealousy, and when wanting what others may have or are doing.
Additionally, hate often originates from a lack of understanding and knowledge as a root of the problem.
Collecting Non-fungible tokens can be confusing, and requires a learning curve which people who don’t have the time can create hate.
Also, when others are becoming good at earning high returns of 200% to 500% of their original investment, it’s easy to hate due to envy.
Lastly, some artists hate NFTs, because it lacks protection for their artwork, and others can easily rip off their hard work.
Below are the most common reasons that cause hate in the space, whether as a collector, creator or NFT artist.
1. Lack of true digital art ownership
A non-fungible token is considered (irreproducible), so in reality, it’s a digital receipt referring to an artwork hosted elsewhere.
In other words, it’s a link that can become functionally worthless, referring to a 404 error if the art vanishes.
For example, servers that aren’t maintained can crash, thus loosing that hosted artwork, and your NFT disappears without trace.
2. Copyrights broken promise
The hype around non-fungible tokens owned copyrights on digital items, which were the first of their kind.
However, while smart contracts allow you to include explicit details around copyrights, and most projects didn’t include them.
This misconception has caused many collections to lose their value once they find out they didn’t own the rights to the artwork itself.
3. Scams and fraud
New technology with high possibilities to earn crypto money quickly results in extreme suspicious activities.
Those who aren’t knowledgeable about smart contracts, the blockchain and how it works become targets for malicious intent scammers.
For example, new NFT projects are prone to rug pulls, which is deleting or abandoning collection’s presence with investors’ fund.
Also, well-known companies and celebrities use non-fungible tokens as a money grab or a rich-quick scheme.
The lack of regulation impacts artists most because others can still use their crypto NFT artwork as non-fungible tokens.
No regulator questions if the person selling it is the original creator.
Until there’s a tool that reads blockchain code like contact addresses, this problem will continue to exist.
4. Volatility in NFT value
Demand and supply change quickly in the crypto space, so buying digital gear for your character is only valuable due to fake scarcity and bragging rights.
As demand dies out, the frequency of digital collectibles’ volume declines, and there’s a collapse in the crypto-coin price.
It becomes a game of who can pass the hot potato faster and make a profit while doing it.
The challenge is in monitoring the crypto prices and non-fungible token values, since they change almost every minute.
Using NFT tracking tools that can help you stay ahead of the trend, while knowing when project demand decreases.
5. Minting cost over profit
Minting is the process of verifying non-fungible tokens to the blockchain, and it can be extremely costly due to gas fees.
Often it’s expensive to mint an NFT and lists it on a secondary marketplace like OpenSea, than when buying it.
This explains why NFTs are no longer profitable, and most of the time invested in minting goes to waste.
NFT transacting costs remain high for new collectors creating when creating NFT for the first time.
Additionally, most in-demand NFT collectors are well beyond the majority of purchasers’ buying power and will become worthless.
Final thoughts
I won’t lie, am not among the firm believers in NFTs, though we all want this space to flourish, it still can’t over-shadow why NFT are hated.
Of course, we understand a lot of the criticism and many of the points that opponents of NFTs make are valid to a certain extent.
So, if you’re wonder “Why does everyone hate NFTs?” or “Why do gamers hate NFTs?”, then we hope to have provided you with some answers.
However, large companies and brands may continue to produce non-fungible collections as they prepare for the metaverse.
The technology may be new and misunderstood, but the adoption continues to climb.
There are increase in investment at high-level’ top 500 fortune’ companies with the interest in implementing the blockchain and use of NFTs.
Non-fungible tokens and the blockchain will remain a popular topic for many future years.
Always learn as much as you can about these topics early, so you have an advantage when the world changes.
