Bitcoin and The Blockchain: Non Fungible Tokens (NFT's) The Ultimate Store Of Value

NFT's are all the rage today and nearly everyman (woman) and his dog is or is trying to get in on this phenomenon. A Banksy art was purchased digitised, and turned into a NFT . The original was burnt. It sold for $380,000 in eth. Artists, celebrities, musicians are flocking to cash in by turning their creations into NFTs.

Even Elon Musk is getting in on the act selling his own NFT - A song about NFT!

What Is An NFT?

An NFT is basically a digital file on a blockchain and is therefore verifiably time stamped and immutable, provided it is embedded into a public distributed blockchain. ( BTC, ETH, Cosmos, Polkadot ... )

The first NFT was known as a token and in those days and was issued on a project called Counterparty (XCP) on the Bitcoin blockchain. Anyone can create one or any number of copies of a token using the counterparty dapp. The first SOG token (NFT) was the FDCARD issued by Everdream Soft, as a game card in their turn based game called Spells Of Genesis.

Because a Counterparty transaction is still a transaction on the BTC blockchain, Counterparty fell into disuse as the cost of BTC transactions escalated. It has now made a comeback especially as the value of these NFT cards start attaining ever higher values.

The FDCARD also known as "The Healing Formula"

Folding coin participants earned these FDCARD by merged folding starting in March 2015 until May when all 300 were "mined" and distributed proportionally to the work units completed by participants who ran the Folding at Home model to help find cures for cancer, Alzheimer, diabetes etc

Starting Price $5000

THE FIRST SOG CARD !

VINTAGE

RARE

The NFT Auctions

Enter Theo Goodman. He started a telegram community @nftauctions where he took it upon himself to auction off any transferable NFTs. It is a simple model based on trust. Sellers send him the NFT to hold in escrow. The successful buyer would send him the money (Btc) and he would forward on this payment less his commission. The first auction was mainly Pepe memes but the second auction contained the above FDCARD which sold for $45,000 and a SATOSHI LITE card which sold for $3300. Is it real? You can scroll up to see the results of the auction Lot17 21 March 2021 @nftauctions.

There are other marketplaces for NFTs such as the DEX on Counterparty in Freewallet, Open Seas, Uptick and more but this is the very first auction for NFTs where there is probably real price discovery and interest being generated from Twitter network.

What this suggests is that there is real demand for Spells Of Genesis NFTs because it started the tokenisation trend, It tells the story of Bitcoin and the Blockchain.

The most sought after card being The Satoshicard

Only 200 copies and it is arguably iconic for Bitcoin and the Blockchain. This card sold for $6000 back in 2016, with fractions of it selling for up to $27,000. It was a quirk that this card was divisible and some people bought fractions of the card thus destroying its' value. Small fraction owners can therefore hold to ransom the owner of the majority part of the card!

The Genesis Card

Representing the First Bitcoin block mined and the birth of the Bitcoin Blockchain.

GOX Card

Representing the story of the very first Bitcoin Exchange, Mt Gox, its hack. The saga continues to this days with liquidators and claimants still fighting over the "carcass".

Battle For Blocksize

Representing the very bitter fight within the community which led to the Bitcoin Cash fork.

Satoshi Lite also known as The Imposter

Charlie Lee, inventor of Litecoin, ask Shaban to portray himself as The Imitator. This card sold at the NFT auction for $3300.

What gives an NFT value?

Like anything else including Bitcoin it is Usefulness, Adoption and Scarcity. Bitcoin (Btc) has an advantage over gold in that it is easier to use as a medium of exchange without the cost of storage.

NFTs that represents digital art are valued because of the beauty of the artwork and/or the reputation of the artist. Most importantly the copyright of that image belongs to the token holder. In future, it will be paid to the token holder through the blockchain without the owner ever needing to do anything about it.

NFTs can also be issued by celebrities, artists and musicians, the value of which depends on their following. Yes songs can also be digitised and made into and NFT. These are collectibles and they include Pepe tokens the main items being auction at @nftauctions. It is only worth what someone will pay for it and its' value can go up or down.

Game Card NFTs in addition to being collectibles, are useful for their attributes in a game. The bigger the community playing the game the higher the demand and therefore value. Crypto Kitties, and SOG cards are examples.

A Special Place For Spells Of Genesis NFTs.

This is my opinion only and I believe that Some Spell Of Genesis NFTs especially those that tell the Bitcoin and Blockchain story and are issued in limited quantities between 2015 and 2016 will fetch very high value. ( See list of all cards here. )

The artwork is tasty, meaningful and professional and they are in limited supply. Satoshicard is only limited to 200 copies and who knows how many copies have already been lost. They are rarer than lambos.

The value fetch by FDCARD at @nftauctions of $45,000 and $3300 for SATOSHI LITE on 21 March 2021 is proof that these SOG NFT cards will be very sought after. Like Bitcoin (BTC) they were there first. They can be dated back to 2015, and there will never be anymore of them.

Is this a flash in the pan? There will be another auction on April 3 and the new auction lot is being put up for inspections now. I believe that this will be an ongoing event very much reminiscent of the early days of Bitcoin when BTC was traded on message boards and chatrooms all on trust. No doubt it will be formalised and professionalised in the near future.

As these eye popping prices keep rising, there will be more interest and we will have a huge positive feedback loop.

What can an NFT be used for ?

1) Commemorate an event

2) Represent a digital artwork

3) Copyright ownership of an artwork

4) Ticketing access to clubs, events and such

5) Prestige of ownership if disclosed

6) Store of value

7) It is not a cryptocurrency

Store of value depends on all the attributes above and more perhaps. An NFT Card has only X number of copies in existence. It is of value to the people who played a part in the event. Gox card represents such an event.

A card like the Genesis Card represents the birth of Bitcoin and thus will have wide interest even to people not particularly interested in Cryptocurrencies.

A card like Satoshicard was the apex card even among SOG enthusiast then. The fact that it depicted a mysterious like character " Yoda Like " makes it even more appealing even if we eventually agree on who Satoshi really is.

It is not a cryptocurrency and this is important. Blockchain tokens are always increasing and decreasing in value. Even if the price of BTC collapses a quality NFT will hold its' value. This is important for those holding crypto to hedge their risk of ownership.

This market is huge and this fact has not really sunk in. FDCARD sold for $45,000 and by extension total FDCARD value is $13.50 million. This places it at no 845 ( Coin Gecko) by market capitalisation, and it is only 1 Card in the SOG stable. Clearly this is a new asset class and deserves a ranking category all on its' own.

The future is bright for NFTs.

Appendix

Counterparty : https://www.coingecko.com/en/coins/counterparty

Everdream Soft : Company owned by Shaban Shaame a Swiss national. SOG was build on his original card role playing game called MOONGA.

Spells Of Genesis : Turn based game using attribute cards.

FDCARD Bidding History

Theo Goodman, [21.03.21 12:02]

BOOM

Zaafar, [21.03.21 12:02]

5000

Mysterious Aesthetic, [21.03.21 12:02]

$10k

Xcer, [21.03.21 12:02]

11111

Theo Goodman, [21.03.21 12:02]

xcer

Rob, [21.03.21 12:02]

$12k

Xcer, [21.03.21 12:02]

Dave, [21.03.21 12:02]

$12.5

Theo Goodman, [21.03.21 12:02]

15k next bid 16k

Xcer, [21.03.21 12:02]

$15

Theo Goodman, [21.03.21 12:03]

[ ✊ Sticker ]

Theo Goodman, [21.03.21 12:03]

do I hear 16k?

Rob, [21.03.21 12:03]

$16k

-, [21.03.21 12:03]

Xcer, [21.03.21 12:03]

$17k

Xcer, [21.03.21 12:03]

$20k

Theo Goodman, [21.03.21 12:03]

V top bidder

Rob, [21.03.21 12:03]

$19k

Theo Goodman, [21.03.21 12:03]

xcer 20k

-, [21.03.21 12:03]

Theo Goodman, [21.03.21 12:03]

26k ?

Theo Goodman, [21.03.21 12:03]

[ ✊ Sticker ]

Theo Goodman, [21.03.21 12:04]

[ 👊 Sticker ]

Rob, [21.03.21 12:04]

$26k

Theo Goodman, [21.03.21 12:04]

26k!

got it all offalick 🫀, [21.03.21 12:04]

26.5

-, [21.03.21 12:04]

Theo Goodman, [21.03.21 12:04]

[ ✊ Sticker ]

Theo Goodman, [21.03.21 12:04]

28 top bid v

Theo Goodman, [21.03.21 12:04]

29k?

Theo Goodman, [21.03.21 12:05]

[ 👊 Sticker ]

White Rabbit1111, [21.03.21 12:05]

Theo Goodman, [21.03.21 12:05]

[ 🤜 Sticker ]

Theo Goodman, [21.03.21 12:05]

29k

Theo Goodman, [21.03.21 12:05]

[ ✊ Sticker ]

Theo Goodman, [21.03.21 12:05]

do I hear 30k

-, [21.03.21 12:05]

Theo Goodman, [21.03.21 12:05]

31k?

got it all offalick 🫀, [21.03.21 12:05]

White Rabbit1111, [21.03.21 12:05]

Theo Goodman, [21.03.21 12:05]

32 white

Theo Goodman, [21.03.21 12:05]

33?

-, [21.03.21 12:05]

Theo Goodman, [21.03.21 12:05]

36?

Mysterious Aesthetic, [21.03.21 12:05]

😳

got it all offalick 🫀, [21.03.21 12:06]

[In reply to -]

Sheeesh

White Rabbit1111, [21.03.21 12:06]

Theo Goodman, [21.03.21 12:06]

no comments just bids ,thanks

Theo Goodman, [21.03.21 12:06]

36k !

Theo Goodman, [21.03.21 12:06]

[ ✊ Sticker ]

Fredrick, [21.03.21 12:06]

37k

Theo Goodman, [21.03.21 12:06]

38k?

-, [21.03.21 12:06]

Theo Goodman, [21.03.21 12:06]

40k!

Theo Goodman, [21.03.21 12:06]

do I hear 41k

Theo Goodman, [21.03.21 12:06]

[ ✊ Sticker ]

Theo Goodman, [21.03.21 12:06]

[ 👊 Sticker ]

White Rabbit1111, [21.03.21 12:06]

Theo Goodman, [21.03.21 12:06]