We have received numerous emails from our clients about the current craze called NFTs (Non-fungible token).

People are going mad over NFTs, in fact this morning I read that an artwork was burned by cryptocurrency group and sold as NFT for $382,000.

And I am sure there are many other similar stories.

You might ask, what is happening?

It’s just simply a result of a lot of liquidity flooding the market fueling ridiculous speculation.

As Walter Bagehot once said..

One thing is certain that at particular times a great deal of stupid people have a great deal of stupid money.. At intervals the money of these people – the blind capital as we call it, of a country, is particularly large and craving; it seeks for someone to devour it, and there is a ‘plethora’; it finds someone, and there is speculation, it is devoured and there is panic.

Our knowledge and expertise in the field is very limited and as such we are staying away from NFTs at the moment.

Will the NFT craze continue? Yes. It could absolutely continue!

As one of my mentors once said, “When a trend passes some critical point of momentum, common sense ceases to matter and the trend can continue for months or years, driven by brute herd instinct, until all contrarians and skeptics are eliminated by natural selection.”

We are in a similar period right now.