In the ever-evolving world of cryptocurrency, Elon Musk, the tech mogul and business tycoon, has once again weighed in on NFTs, the digital collectibles that took the market by storm during the bullish trends of 2021. Musk, known for his outspoken opinions, recently shared his dissatisfaction with NFTs on his platform, X (formerly Twitter).

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The catalyst for Musk's comments came from a post by Adrian Dittman on X, humorously referring to the Dodge designer's question, "Who still remembers NFTs?" Dittmann said, "Web links to data that you don't own." Musk, in response, echoed sentiments he previously expressed on the Oct. 31 "Joe Rogan Experience" podcast.

According to Musk, "You should at least encode the JPEG into the blockchain. If the company's image is removed and goes out of business, you don't have the image anymore."

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This criticism, as reported by Feinbold, reflects Musk's extraordinary understanding of how the NFT market operates. Basically, the process involves a central database on a specific blockchain storing JPEG images linked to a non-fungible token hash ID. Investors, instead of owning the actual media, hold and trade hash IDs. The catch lies in the fact that the connection between NFT and its associated media depends on the existence of a central database.

Despite this inherent problem, there are potential solutions in the works. Some blockchain infrastructures and projects have already solved this problem by directly embedding known NFT objects such as JPEGs, movies, and music into the blockchain.

Elon Musk's dissatisfaction with NFTs highlights the need for innovation and trust in the evolving landscape of digital assets. As the crypto world continues to adopt, it leads us to question the future of NFTs and the solutions that will arise to address the concerns raised by industry influencers like Musk. Stay tuned as we unravel the intricacies of the crypto space and explore the potential changes ahead.

(Image Credit: X/@elonmusk)