NFT is the new trend in gaming and millions of US dollars are already being invested. Now Phil Spencer, currently the head of Xbox, has spoken out. He is not really a fan of the NFT trend and states that he does not want such things on Xbox.
What are NFTs anyway? NFT is the abbreviation for “Non-Fungible Token”. It is a protected digital object based on “blockchain” technology. Blockchain is also the foundation for cryptocurrencies like Ethereum or Bitcoin.
All these objects and items are secured through the blockchain, making them unique. Games are also starting to use this, promising players items or abilities with real value.
However, every new business idea also attracts some fraudsters who want to exploit the new trend. For instance, people invested millions of dollars in virtual monkeys, but the developer disappeared with the earned money.
Xbox head Phil Spencer recently explained in an interview that he does not think highly of these digital objects. To him, they seem unreliable and “speculative”.
Xbox Chief considers NFT speculation and experimentation
What does Spencer say? In an interview with the news magazine Axios, he spoke about NFT and its impacts (via axios.com). Here he explained that these digital objects are a lot of “speculation”:
Additionally, he adds that he does not want these speculative objects on Xbox. He compares this to a storefront. When passing by the storefront of a business, you only want to see trustworthy products:
Nevertheless, he slightly qualifies this attitude and does not draw a clear line. He adds, “I can understand that in the beginning, you see a lot of things that you probably do not want in your store.”
So it could very well be that a project might come along that could ultimately convince him. He also states, “I don’t think every NFT game is necessarily exploitative.”
For many users, NFTs are an investment with potential value appreciation
What does Spencer mean by “speculation”? Individuals investing money in NFTs hope for an increase in value. Just like other collectibles, NFTs are treated by some as an “investment”: They buy a piece of art expecting it to appreciate in value and be able to resell it for more money later.
- For example, you can soon buy NFT skins for a character in Dead by Daylight
- Others buy “NFT” clips from a Twitch streamer for a lot of money
Why do people buy such things? NFTs apparently serve as speculative objects that people buy to resell for profit.
Some view this very critically as a “bubble” or a “short-term trend” where a lot of money can be burned, because after all, you can take a screenshot of a Twitch image. For others, these objects represent a growth market they want to enter.
If you want to learn more about NFTs and the background, you can read more about it here on MeinMMO:
NFT is the trend in gaming in 2021, companies are worth billions $ – But why?
