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Elon Musk Criticizes NFTs’ Lack of Blockchain Integration

Key Points:

  • Elon Musk criticizes NFTs for their lack of blockchain integration, despite his appreciation for NFT artist Beeple.
  • On Joe Rogan’s podcast, Musk highlights the risk of artworks disappearing if the companies hosting NFTs shut down.
  • The discussion also raises concerns about scams in the cryptocurrency sector, with a special mention of Beeple’s legitimacy.

Elon Musk Expresses Criticism Towards NFTs

During his fourth podcast appearance with Joe Rogan, Elon Musk, the billionaire with many hats, didn’t hold back in discussing the topic of NFTs. Despite admiring Beeple, whom he described as “quite bold,” Musk expressed reservations about the technical substance of NFTs, emphasizing that most of them are not encoded on the blockchain but merely consist of a JPEG image URL.

The conversation between Rogan and Musk began with praise for Beeple, an NFT artist whom Musk had previously followed, highlighting his commitment to daily create new digital artworks as impressive. Musk’s recognition even led Beeple to react on Twitter, thanking the billionaire for the shoutout while apologizing for any potential “nightmares” caused by his images.

The Technicality and Viability of NFTs

Later in the interview, the discussions took a technical turn as Musk addressed the issue of the longevity of NFTs. His criticism revolved around the fact that if the company hosting these images goes bankrupt, the buyer would be left without their artwork, highlighting a fundamental problem of dependence on third-party platforms.

Musk’s stance is significant not only due to his considerable influence but also because it reflects a growing concern about the quality and sustainability of investments in the NFT world. Fans of BRC-20 tokens (Ordinals) on Bitcoin were quick to point out that their “NFTs” are indeed stored on the Bitcoin blockchain.

Musk has already parodied the concept of NFTs on Twitter and has even been suspected of owning a Bored Ape Yacht Club NFT, though it remains speculative.

The interview also highlights an awareness of the proliferation of scams in the crypto space, with Rogan acknowledging that most NFTs are scams while recognizing the legitimacy of certain creators like Beeple.

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