this post was submitted on 18 Aug 2023
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You are right on. The idea of artificial scarcity is a scam. I replied to someone a little higher up about the securities use case, but the short version of that is, for things like stock in a company, stocks are already scarce (there are only as many shares as the company issues - or there is only supposed to be that many). It's the scarcity of the underlying asset, not the "digital" aspect of it, that creates value. Each share is issued by the company as a single NFT token and there are only as many NFTs as they issue shares.
Who really wants to buy shares and then trade and sell in significant numbers outside exchanges?
The idea is that this would be the software used to run the actual transfer of shares traded on the exchanges rather than what is used today which is just closed ledger entries on books of all the participants. But the current manual process takes multiple days to settle each transaction and this would be instantaneous, and in one transparent distributed ledger.
You can do that more efficiently with transparency logs instead