Speculation
NFTs representing digital collectables and artworks are a speculative asset.[one hundred thirty] The NFT buying surge was named an economic bubble by industry experts, who also compared it to the Dot-com bubble.[131][132] In March 2021 Mike Winkelmann named NFTs an "irrational exuberance bubble".[133] By mid-April 2021, demand from customers subsided, triggering charges to fall considerably.[134] Money theorist William J. Bernstein when compared realistic figures the NFT market to seventeenth-century tulip mania, saying any speculative bubble demands a technological advance for persons xoxo lovely to "get excited about", with A part of mike panda that enthusiasm coming from the acute predictions currently being created about the product or service.[one hundred thirty five] For regulatory policymakers, NFTs have exacerbated problems for example speculation, fraud, and high volatility.[136]