The more I want to get into the NFT space, the more I realize the accessibility issue that comes with it.
NFTs are expensive. Like pretty damn expensive. Especially the ones that live on the Ethereum blockchain.
The NFTs cost the price that is advertised, but also comes with a tax called "gas". And gas ain't cheap. I tried to mint an NFT that was FREE, but it costed about $200 in gas fees in order to transfer it to my wallet. I couldn't even afford a "free" NFT.
I'm not here complaining, I'm just trying to raise a point.
I am currently working a part-time seasonal job. Making $17 an hour. Each pay check is usually around $900 for 2 weeks of work.
I have around $1,000 in my savings. NFTs are definitely not a space where I can actively engage in at the moment. Do I want to? Hell yeah; I really just don't have the money to afford it.
Well then, don't get involved with it. If NFTs are really that expensive they are a luxury, not a commodity.
That's true. But at the same time, what are going to be the ripple effects of NFTs when it comes to brands that are entering this space or in the space?
Brands that preach inclusion and accessibility. Will they lose a portion of their audience they have been trying to lift up?
This portion isn't about me and my financial issues. I will get my finances right in the future. I will be eventually in the space.
But, what about the kids that used whatever money they were able to earn to pick up a shirt from those brands. Sure they could still wear those shirts, but the love and focus of the brand is going into the NFT space.
The founders are turning towards NFTs and giving those their full attention. They are giving holders different perks. They are giving holders exclusive access to different events. They are rewarding their holders for purchasing their NFTs.
Makes sense, when people invest into different companies, companies tend to give their investors different perks.
But when it comes to a space of inclusion and community, don't you think that could in turn alienate a certain segment of your audience that loved how connected you were to the people who didn't have much.
The price of entry is already really steep. You are spending hundreds of dollars off the drop in order to enter this community. If you don't buy off drop or pre-sale, the amount of money you spend could likely be in the thousands in re-sale.
The richer just keeps getting richer. I understand that it's not necessarily the rich, rich that are involved in this community. There are a lot of the middle class that is involved and making great money off it. That's amazing. It really is. Love to see those get those opportunity to be a part of a community and make money at the same time. But, you have to have good money in order to enter the space.
These NFTs are only going to get more and more expensive. The ones actually worth holding of course. To those that missed out, likely won't be able to get into the space for a while and then when they do might not be able to afford to even try and get in.
It's just that, it just feels too exclusive. It feels so inaccessible to the ones that just can't spend half a grand on an NFT because they have rent and bills to pay in order to survive.
I'm really interested to see the ripple effects of the inaccessibility of NFTs to the lower middle and lower class. The ones that would champion and feel safe in these communities, now beginning to feel locked out.
It's like having to watch a party happen in front of you where you are locked out and forced to interact through a window. People are waving at you to come on inside, but security won't let you because you don't have the right credentials.
I know we are still early on in the space, like super early on in the space. The accessibility issue will be resolved in the future, hopefully. It is being worked on in the Solana space right now with Metaplex. A publication that I really admire has partnered up with Metaplex and is doing an NFT drop with them, Street Dreams Magazine.
They have been championing accessibility. With apparently lower gas cost and a more affordable platform. Street Dreams is dropping their collection on November 5th, so I guess we'll see how accessible it really is. That will be the first NFT drop I will be a part of.
I'm really intrigued to see how accessibility develops in the future. With the rise of popularity in crypto, the more expensive it will be to buy crypto. Those already holding will be fine, but for the ones trying to enter the space late will they even be able to entertain the thought of trying to hold any of the NFTs that will be minted and coveted in 2020, 2021, or even 2022.
From all of the different crypto sources I tune into, the cost of different coins are to rise every year. (I mean of course they're bullish.) But the "accessible" coins that are used to purchase NFTs will definitely rise in price. Making them not really as accessible.
Does this actually disrupt the economic system that has been put in place or just create a different class divide?
Are we all really going to make it? Or is it just going to be the ones that got in early? The ones that had the right funds at the correct time.
I wouldn't be able to tell you how this will end up, but here's where I think it'll end up. This is just me thinking out loud right now.
Pre-sales and whitelists allow those that are already in the space, get more NFTs for the cheapest they'll ever be. They then hold onto the NFTs and allow them to be sold on the re-sale market for say idk, 300% the cost of minting. So from just a few days, a piece that was minted at .05 ETH could be raised to .15 ETH.
The founders of the project stick true with their collection and add actual perks for the holders. They maintain their community correctly and keep their NFTs at a strong floor.
While this is happening, more and more people are getting introduced into the NFT space. More people are buying Ethereum, which in turn raises the price of Ethereum. So now, we have the cost of Ethereum grow and the Ethereum price of the NFT grow at the same time.
The piece that the person who couldn't get the initial mint and wanted to buy later on is now exponentially more expensive than what the cost would've been at minting. Now, the person has to consider if the NFT is even worth buying. Is the cost of the NFT even worth it anymore?
Has the brand now just created an elitist community where there's now a wide gap between the haves and the have nots. What would the brand offer to those that cannot collect in order to not alienate them?
Accessibility has to be one of the main driving forces if NFTs really want to be the savior we all hope it to be. If we want NFTs to really be a mainstay within the public eye, there has to be some change within the cost of entry that has to work now and in 5 years.
That was just a very simplistic "example" of where I think it could end up. The thing with crypto is that there will always be volatility. I could be 100% incorrect on my thinking above, but I could also be right. No one really knows what the effects of NFTs will be since this is still a very new piece of technology.
I just hope NFTs figure out a way to stay accessible and allow all different types of people to be involved in the space.