The NFT Boom

Intro

The NFT markets have been a wild ride in this crypto bull run as both volume and price have skyrocketed on almost every level. This increased activity has come with mainstream coverage, new drops, and an overall buying craze. Individuals like Gary Vee, Chamath Palihapitiya, and Mark Cuban have come out publicly and spoken about the potential they see in the ecosystem. For example, about 2 weeks ago Chamath in an interview with Bloomberg mentioned that he was building an NFT portfolio. This came with excitement as people from the crypto ecosystem along with the mainstream media scrambled to figure out this new emerging asset class.

“Punk 4156 bought for 650 ETH ($1,245,633.99 USD)”

Credit: https://www.larvalabs.com/cryptopunks/details/4156?ref=tokendaily

Why am I so bullish on NFTs and the overall ecosystem?

There are so many reasons to be passionate about NFTs and the ecosystem. For one, creators are being empowered in terms of both their work and pay. These creators are finding new ways of monetization that were not possible without the use of this technology. Another reason that I love NFTs is that they allow users to become owners. This feeling of ownership not only empowers individuals but is also a great community-building feature. Joining the discord of these NFT communities is amazing. Being able to participate in them not only allows me to see how tight-knit they are but also why this is the future of which communities will be built. Users have skin in the game in the form of digital assets and share that passion with other users. Think of it like running a business the founder (creator) has skin in the game along with the investors (users).

When looking at the Ethereum network, it is filled with niche communities like this. These niche communities could build around application users, NFTs, and or social tokens..to name a few. Ethereum can be seen as a country or state (depending on how you look at it) and these niche communities can be seen as towns or counties. These towns interact with the financial system(DeFi), collect art, and hopefully join in the Metaverse.

The way I see it is that society is becoming increasingly digital, in terms of time online, number of devices, and now work. It only makes sense to me that individuals will start to value digital assets in ways that we have never seen before. If you want to get a glimpse of the value of digital assets, take a look at the gaming industry where Fortnite raked $2.4 Billion in 2018 as a free-to-play game. Another point to note is that with the emergence of VR and the Metaverse, individuals will look to decorate their digital environment much like we do our physical ones. This could come in the form of collectibles, art, and numerous other assets in the ecosystem.

It only makes sense to me that our digital lives will start to play an even bigger role in the future. I mean look at how far we have come since the start of the internet back in the 90s. We are going to see things happen in the NFT ecosystem that we have not even begun to wrap our heads around yet. One last thing to remember is that this technology can be used for so much for than just art and collectibles, for example, even physical assets can be tokenized on the blockchain. Overall, NFTs create provable scarcity in the digital world and are the building blocks for our digital lives.

Disclaimer: The information found in this blog post is not meant to be used, understood, and or construed as financial or investment advice. I am not a financial advisor, accountant, or attorney. The contents in the post should be used for informational purposes only and are my personal opinion.

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