THREAD: Collectibles

Deep human needs? Cabinets of curiosities? Veblen goods?

Or something more...

Let’s take a deep dive into the history and psychology of collectibles and see what makes #NFTs unique.

Part 1: The drive to collect

Anthropological evidence shows us that collecting is a primeval drive. That is, it predates even humans.

We see collecting behavior in a number of modern mammal specials including primates, pack rats, and dolphins.

And we see it very strongly in the human species.

This begs the question, why? Why do many animals, particularly humans, collect things?

In early human history, collecting objects lprovided a sense of security, and possibly even an ecological advantage.

Collecting rocks as tools, or sticks as kindling, for example.

As humankind evolved, so too did the complexity of the psychology of collecting.

Collecting became a way to focus desire, gain knowledge, organize experiences, store wealth, and signal status.

Let’s look at these factors, particularly status signaling, in a more modern context.

Part 2: Cabinets of curiosities, collectibles in the modern world.

Cabinets of curiosities were rooms or literal cabinets that stored rare items and oddities.

Originating around the 1500s, these ‘cabinets’ can be thought of as small museums. Exhibitions of the rare and unique.

In a time before computers and even photography, these assemblages of goods advanced collecting behavior.

They allowed storage & display of keepsakes which represented ones experiences, and also allowed one to signal status.

Interesting cabinet = interesting man.

Thus collecting became not just a matter of literal or psychological security, but of organizing & storing experience. And importantly, signaling that experience to others.

Signaling in this way leads to demand. Others want experiences for themselves.

Enter collectible trade.

Part 3: Veblen goods, the economics of collectibles

Veblen goods are “a luxury good for which the demand increases as the price increases”.

This goes against the law of supply and demand, which says that as price increases demand decreases.

Why do Veblen goods do the opposite?

If we understand the signaling of status as a foundational aspect of collectibles then the answer becomes clear.

Desirability signals status which signals importance of the experience represented by the collectible.

And price is usually a good signifier of desirability.

So we often see collectibles behave as “Veblen goods”, meaning the more rare/special they are, the more wanted they are. Thus price increases.

But instead of demand decreasing with rise in price, it rises. Because collectibles are more than objects.

They are experience signals.

Part 4: What makes NFTs a new class of collectible.

We have reviewed the nature of collectibles as physical objects, and more than physical objects.

Physical collectibles tap both core human needs, and a desire to collect and signal experiences.

But what about digital goods?

Digital goods lack a traditional physical experiential component. I can’t touch a digital baseball card the way I can touch a physical one. Not yet anyway.

But can’t I still set up my own cabinet of curiosities in the virtual world?

Yes. Through web, AR, and VR I can.

Digital goods, specifically NFTs, open up a new world of collectible possibilities.

Being digitally native they can be exchanged across time and distance seamlessly. Markets are also more fluid. Being blockchain backed, authenticity questions are diminished.

But what else?

Digital goods as NFTs have utility that gives them super powered collectible potential.

NFTs can seamlessly migrate a profile and avatar for you from website to website.

They can form a key to unlock totally unique experiences for collectors.

And much more. https://twitter.com/makersplaceco/status/1335390058682044422

NFTs enable “super status signaling”.

They are not only the watch on your wrist you can flex to your friends, they are also your backstage pass to the VIP.

They are not only the modern art your house guests can see, but your own modern art museum, able to be shown to anyone.

They are collectibles, super powered.

1. They satisfy the core desire to collect.
2. They enable you to build your own cabinet of curiosities.
3. And they (super)signal status, not just as desirable objects, but as literal portals or keys to unique experiences, IRL or virtual.

I hope you enjoyed this brief history and overview of collectibles and why I think #NFT technology for collectibles is revolutionary.

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