Speculation
NFTs representing digital collectables and artworks can be a speculative asset.[one hundred thirty] The NFT getting surge was identified as an economic bubble by authorities, who also in contrast it to your Dot-com bubble.[131][132] In March 2021 Mike Winkelmann termed NFTs an lily nft "irrational exuberance bubble".[133] By mid-April 2021, need subsided, causing price ranges to fall significantly.[134] Economical theorist William J. Bernstein in comparison the NFT market what is a nft digital trading card to seventeenth-century tulip mania, stating any speculative bubble requires a technological progress for people ferys today to "get excited about", with Section of that enthusiasm coming from the extreme predictions staying built with regard to the merchandise.[135] For regulatory policymakers, NFTs have exacerbated problems for instance speculation, fraud, and high volatility.[136]