- Oct 25, 2006
I'm not willing to do it until/unless a digital item exists that has properties similar to regular commodities. For example - copper. If I buy copper, I might be buying it as a commodities trader hoping to make a profit and then sell the contract, never receiving the physical copper. That's what bitcoin can do right now.Bitcoin doesn't meet the traditional definition of a commodity. However, we are now in the digital age. Some people would expand the definition to include digital commodities. Why are you unwilling to do so?
I also might be buying copper because I want to have a nice roll of sheet copper to use for wallpaper in my house, or maybe to look at because I think it's pretty. Maybe it proves my wealth that I can have a big old roll of copper sitting around. Maybe I would resell it some day if I need cash or the price is right. That's what NFTs and other types of digital items can do.
I also might be buying copper because I want to take that copper and process it and use it in manufacturing to produce a useful product. NFTs or any digital item can't do this currently.
Another thing that digital items cannot do is be used for general purpose. I can't think of anything digital which can be used for multiple uses in the way that a commodity can. Cryptocurrency is used for finance/investment. Gold is the commodity most similar to crypto in that it is primarily used for finance and investment, but even it is used for other purposes such as jewelry and industry. Cryptocurrency can't be used for anything other than financial transactions. NFT's are used to indicate ownership of a digital asset. We don't consider cash to be a commodity, neither is a bond or other contract that is used to secure payment. We don't consider art or certificates of authenticity for collectors items to be commodities. The things that crypto and NFTs can do don't lend themselves toward being commodities, unless you know of other things that can be done that I don't.
Someday, if the "Metaverse" becomes real and widely used and you can get a digital item with widespread uses that carries over throughout the whole "Metaverse", then and only then (imo) could there be such a thing as a digital commodity.