Social Culture, Function and Differences In Monetary Value
Imagine being in Dubai and hearing that there are car plate numbers that are more expensive than the cars and when I talk about the car, I dont mean the regular cars like Toyota, Hondas or Nissan, I mean exotic, luxurious cars like Rolls Royce, Ferrari, Lamborghini and the rest. The plate number has about one or two letters on it, and it cost a lot, it screams wealth and money. To other people that will sound so ridiculous, how can a plate number be more expensive than the car? Now this is what social cultural status comes to play, its the social cultural status for that environment, it does not have to make sense to you that is outside that environment, but it makes sense to the people living in that environment.
This is how I see some over priced NFTs or skins in video games, recently someone spent over $400k on a video game digital skin, a lot of people got triggered saying, why will some one paid huge amount of money own some video game skin, I guess those people haven’t met the bored ape, crypto punk and the sandbox NFT collectors. What about beeple NFT that is the most expensive NFT sold ever, did it make sense? Does it make sense that some one will spend over a million dollars on some NFT? Nope, doesn’t make sense to you, but it makes sense to the people in the community who are involved in the social culture, it might not make sense to you and it might not make sense in your social culture, or provide social function doesn’t mean it will lack value.
People are real and have different network effect, so for as long as they are utilising that society and everything I’m it, what ever asset they have that provides a social function in the community is what will have value and the value will obviously be set and determined by the market in the society. if it doesn’t suit you, you can decide to not participate in their market, for instance look ash bitcoin, why is a computer program which you cannot see or touch worth over $10k? Its because of the socio economic function it has in the crypto community, those people that find it absurd and feel doesn’t make sense to have a computer program worth that much decided not to participate in it.
Its a normal thing, this is find all over the world in different aspects, the internet just brings the information closer and to our reach, and also we have moved it digital now so its easier to have our own absurd over priced social culture.
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