| Everything is valued this way. All purchases are based on what people think the thing is worth. Discounted cash flows, etc, are all ways people use to come to their ‘subjective’ conclusions. It ends up being circular though - yes, human judgement is ultimately part of the equation, but that judgment end up being based on a prediction of future value, and often we can use understanding of markets or the intrinsic value of commodities to industrial processes to assess this. Many people are arguing that the value of NFTs is in fact not based on an intrinsic value to future processes, and is purely a subjective bubble. Arguing that all valuations have a component of human judgement and that people may just continue to like NFTs is not a counterargument. A counterargument would be to explain how that will continue to be valuable independent of the subjective component. Generally people seem to dodge this, and instead just say ‘everything is subjective’, i.e. the postmodern view. |