The Fed's ultra-easy monetary policy has sparked some crazy trends over the past few years, such as the ridiculous spike and sell-off of emoji stocks, the tens of billions of dollars market cap of dog projects like dogcoin, multiple companies valued in the trillions of dollars, and more.

Similarly, metaverse and NFT have gained notoriety in the past few years, with many unrelated metaverse-related projects attracting significant investment. Suppose you are building a metaverse for dogs, and the dogs hang out in a virtual environment. In what financially normalized world would this project make more sense? But if such a project were announced today, it would receive millions in seed money thanks to the financial absurdity Jerome Powell and the Federal Reserve were forced to create during COVID-19.

Highest valued NFT projects

The Bored Ape Yacht Club (BAYC) on Ether is by far the most valuable NFT project, with a base price of over 90 ETH per NFT. What are the use cases for these NFTs? They are used in a metaverse game that is not even worth one of the NFTs; some freelancer could design a better game for $200. In addition, the reserveApes() function that calls the BAYC NFT contract allows the BAYC team to mint unlimited NFTs because they don't set any limits on their so-called "reserve" feature, but at this point, who cares? It's all about buying NFT and hoping that someone will offer you more than your cost. It has nothing to do with its use in the metaverse or any value behind it. Unfortunately, this is pure greed fueled by sheer stupidity.

It's not even a JPEG on the blockchain

Uploading JPEGs to the ethereum blockchain requires a fair amount of gas. That's why most NFT minters on ethereum choose the cheaper non-ethereum option. They simply upload the image to IPFS and store its URL on the ethereum chain. This is the case for almost all NFTs on the ethereum chain, except for a very few NFT projects. While there are available blockchains that allow relatively cheaper image uploads on the chain than on Ether, this mania seems too centralized on Ether, where almost all large sales take place.

Multiple metaverse?

For most projects related to metaverse, Facebook's move to build a metaverse seems to be a game over. Let's say you decide to invest in virtual worlds. Would you invest in Decentraland's virtual land or any other digital currency based virtual world with a terrible GUI that also requires the use of gas/fees, or Facebook's centralized virtual world that everyone knows is promoted via WhatsApp/Instagram and everyone expects it, including your neighbors?

All these projects that are building their own e-worlds or meta-universes will likely run out of funds soon. Their visual games keep zero activity and transform into electronic gnome towns instead of meta-universes. We've seen this before with CryptoKitties and other projects in 2018-2019. While they are gaining considerable attention again thanks to NFT mania, it should be remembered that they were ghost projects for almost all of 2018-2020 bear market and will likely become ghost towns again once the NFT craze subsides.

The end of quantitative easing

As the Fed nears the end of tapering and policy normalization, we should all be preparing for the next rise and taper. The past few months have remained quite tough for Wall Street due to the correlation between the equity and digital currency sectors. Digital currencies have also lost about 40% of their market capitalization. However, it should be noted that only gradual thinning has led to this happening. One can only imagine the damage that will be done to stocks and their underlying assets (including digital currencies) once the Fed actually rises and proceeds to taper its balance sheet. Recent extremely high inflation reports suggest that the Fed will have to go up, and go up significantly, and fast. Meta-universe and NFT? They have little chance of keeping up with their high liquidity and valuations once a real bear market hits.

Watch: CoinGeek New York Panel, NFT's New World

New to Bitcoin? Check out CoinGeek's Bitcoin for Beginners section, the ultimate resource guide to learning more about Bitcoin (as originally envisioned by Satoshi Nakamoto) and the blockchain.