Does the perception of scarcity appreciate the value of an asset or currency?
Who would have guessed that a “silly” kitten breeding game would rise to become the heartbeat of ethereum dapps? This has taken many by rude shock and euphoria in equal measure. CryptoKitty is now the number one decentralized application (dapp) on the ethereum platform, having processed over $ 12 million in sales in barely six weeks!
In a revealing interview between a motherboard journalist and a software engineer at Axiom Zen Arthur Camara, it got clear that the creators of CryptoKitty have also been taken by surprise by the resounding success of the game.
Arthur Camara reported that the vision behind CryptoKitty was to offer an educational tool for blockchain technology enthusiasts. Acknowledging the impending revolution that blockchain was creating worldwide, they hoped to get more people on board the blockchain gravy train.
The five most expensive digital cats are now selling for over $100,000 each. It is not surprising that CryptoKitties now accounts for 11% of all the traffic on the ethereum network.
Some critics have questioned the sustainability of the CryptoKitties platform and the true value they represent.
Balaji Srinivasan (CEO of earn.com) defended the virtual cat game claiming that “It has demonstrated frictionless international trading of digital assets on a Blockchain at a large-scale.”
He went on to argue that the game had proven that trade can happen in a decentralized environment effectively without intermediaries.
Whether the value of CryptoKitties will skyrocket or plummet in 2018 is hard to determine. However, the dapp will realize more than just the educational goal that its inventors had in mind when creating it.
This opens the debate as to whether there is any such a thing as intrinsic value in any currency. Perhaps it is the perception of scarcity that determines value!