Tokens and NFTs aren’t scams on Bitcoin

BSV now has NFTs and tokens–both were recently introduced to the Bitcoin ecosystem.

Before Fabriik launched Simple Fabriik Protocol for tokens and Twetch launched the Twetch Hat NFT, instances of NFTs and tokens existing on BSV were far and few in between.

Once it became easy to create tokens, a wave of innovation began taking place on Bitcoin, with over 1,000 SFP tokens generated within two days of Fabriik’s protocol launch.

I believe that it is a net positive that tokens and NFTs exist and are being launched on BSV, however, what both the token renaissance and the NFT conversations have shown is that not all Bitcoin builders, enthusiasts, and investors have the same belief.

Why?

When people hear tokens and NFTs they think ethereum; when people think ethereum, they have flashbacks to 2017 crypto-mania, ICO’s, DeFi scams, and ‘digital art collectible’ buying and reselling that does not make much sense at first glance.

For that reason, I think that when some individuals in the Bitcoin community hear that “BSV has tokens and NFTs,” they immediately think “this is a scam, this is not going anywhere.” However, I don’t think that is true.

What’s the difference?

When it comes to tokens, the ethereum ICOs and Defi projects that most would call scams did not deliver on their promises or achieve their roadmap milestones. 

But just because a majority of blockchain tokens have a bad wrap, it does not mean that tokens are bad. In my opinion, it just means that we haven’t seen very many legitimate uses for tokens and NFTs and that they haven’t been used to the best of their ability yet.

The easiest way to set BSV tokens apart from these ethereum projects is to actually deliver; to create tokens with real utility and implement them in business models in practical ways that make sense.

With tokens, we have seen all of the things that other blockchain networks with token protocols have done wrong, and we can be better by not making the mistakes those other networks and projects have made.

But what about NFTs?

NFTs are a whole different animal. They have existed for quite some time, but it wasn’t really until the summer of 2020 that NFTs picked up traction and slowly began working their way to mass-adoption. 

I have seen several people in the Bitcoin community call NFts a scam, however, I do not think this is true either. 

NFTs are relatively new, and I believe that they are still finding their purpose in the world; although they have become popular and in-demand as digital collectibles, I personally do not think that is the best, or final, use case for NFTs.

I can’t speak much on this topic yet because I am still doing my best to understand them and the potential they have for the future; but rather than write them off, I would like to experiment with them and learn more. 

Education is key.

Learning more about both tokens and NFTs brings me to the final point I would like to cover. Education.

Just because tokens and NFTs may have been created by bad actors on other blockchains does not mean that they will be created by bad actors on BSV–that alone makes a major difference.

If individuals with honest intentions who have set out to create legitimate businesses have incorporated tokens or NFTs into their business model, there is a good chance that they want their creations to succeed–they also have their reputations at stake! Compare this to the anonymous teams and developers on other blockchains to who you can’t tie a real-world identity to and it is no surprise that some of them simply raise money to exit-scam their users.

That being said, we can learn from both the failed and successful projects that were built on other blockchains. We can look at what they did wrong and make sure we do not make those same mistakes, and we can look at what the successful projects did right and incorporate elements from those projects into our Bitcoin-based projects.

Just because others did it wrong does not mean it will be done the wrong way on Bitcoin. Just because others have scammed their users does not mean Bitcoin businesses will scam their users.

We can learn from those past instances but we should not believe that all tokens and NFTs are scams because of those instances. It is important for everyone to educate themselves on each of those topics, as well as do a bit of experimenting with both tokens and NFTs so that they can better understand them and their legitimate/optimal use-cases.

At the end of the day, both tokens and NFTs are not to be ignored. Tokens and NFTs are arguably the current “killer app” on the blockchain–the instance that made blockchain technologies popular and adopted. So maybe there is more to tokens and NFTs than meets the eye, maybe there are better use-cases for tokens and NFTs that the world has not seen yet, and maybe, the world has not seen them yet because they are only possible on BSV.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.