After a decade of whiplash-inducing changes in valuation, billions of dollars are now invested in cryptocurrencies, and the people who have made those bets can’t cash in their chips anywhere. They can’t buy real estate with cryptocurrency. They can’t buy yachts with it. So the only rich-person hobby they can partake in with their cryptowealth is buying art. And in this art market, no one is obligated to have any taste or judgment about art itself. If NFT prices suddenly plunge, these investors will try buying polo horses or Davos tickets with cryptocurrencies instead. Think of a kid who’s spent the day playing Skee-Ball and now has a whole lot of tickets to spend. Every toy looks enticing. NFTs have become just such a plaything.
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