Ferrofluid can theoretically be used as a lubricant between a neodymium magnet and a PVC pipe, but concerns about abrasion from the magnetic particles exist. Traditional oil lubricants are readily available and may be more effective for reducing friction without the risks associated with ferrofluid. The discussion also humorously touches on the unconventional idea of using ferrofluid in a high-tech context, likening it to a "high-tech condom." Overall, while ferrofluid has potential, its practicality and safety as a lubricant in this scenario are questionable. The conversation highlights the importance of considering long-term effects and alternative options for lubrication.