Is it a good way to smash diamonds to make NFT?

In August of this year, Tascha, a Ph.D. in macroeconomics, suddenly had an idea. She wanted to buy a diamond, make it into an NFT, and smash the diamond. So can this NFT still retain the value of the diamond?

After Tascha had this idea, she had a conversation with her mother. Tascha's mother asked her own question: If you have a house and it burns down, what's the use of your real estate certificate? When the physical object disappears, the value itself is gone. The real estate certificate and NFT should be the same.

Later, Tascha spent $3,219.97 to complete the diamond NFT, and put it on Opensea‌ for auction. Finally, on September 12, the NFT was priced at 5.5125 ETH, and the current value is nearly $20,000, which has exceeded all the costs Tascha paid for this NFT. .

Huobi Institute believes that Tascha’s approach has been successful, but it does not mean that this approach is correct. From the perspective of this event itself, Tascha wants to smash diamonds and make NFT, which is an unconventional and topical behavior, which has attracted the attention of many people, so they bought it at a very good price. But this approach is not sustainable.

NFTs can represent real-world assets, but not real-world assets themselves. In addition to the house example, for example, a person's ID number can represent a person's identity, but it cannot be equated with the person himself, although the ID number is also unique. If someone wants to buy a diamond to wear, and the final transaction is an NFT, it will look strange to print this NFT as a picture and hang it around his neck.

It is conceivable that if a diamond dealer smashes all his diamonds and makes them into NFTs, he may go bankrupt soon.

What belongs to Caesar belongs to Caesar, and what belongs to God belongs to God. For the development prospect of NFT, we hope to prove the uniqueness of its assets in the metaverse virtual world in the future. It is a tool of the virtual world. The essence of NFT is a piece of code. The reduction and destruction of property in the real world does not change the attributes of this code.

Huobi Institute also does not agree with the destruction of property in the real world in order to make NFT. We should cherish the fruits of labor.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness. In view of the fact that China has not yet issued policies and regulations related to digital assets, users in mainland China are advised to be cautious in digital currency investment.