The world is recognizing the rise of NFTs and the value they carry to proving yet again, blockchain technology is here to stay but are all these NFTs we are seeing coming along?
I remember back in 2017, we saw plenty of alt coins take shape, all with their reputable white papers, exemplary team, and most importantly a coin and purpose. These alt variations all had an edge. We had some trying to solve fintech, advertising, real estate, governance, and custodial problems. Most of these alt coins and tokens don’t exist anymore, the ones that lived through all had one thing in common. It seems like the NFT domain will take similar pathways and here’s why.
When looking at value, almost any idea today can hold some ground or be made into an NFT. Most NFTs are defined through a purpose; games, collectables, metaverses, and more. There are NFTs coming out everyday and the commonality between them seems to be that the public entertain the idea of making money so by creating it, they can make even more. There seems to be limited belief in finding rhetoric or proof / reason of NFT existence before creating one or for the public making an investment.
When you see NFTs valued in the millions of dollars like recent Sandbox estate lot purchases, it’s hard not to consider going in on another early find NFT that you stumble upon online or through word of mouth. Scaling to the millions isn’t new though, NFTs like Crypto Kitties or even Top Shot broke records. Zuckerberg’s announcement of their Metaverse and rebrand broke the NFT space. We see many of them now speak metaverse, disregarding why or what a metaverse that connects all of us will look like. Regulatory bodies may have a hard time allowing them to participate.
On another note, royalties made by artists creating work on NFTs with growing resale value is scalable. That is if these NFTs were created by recognized artists, labels, or reputable non blockchain companies. Besides royalties, you can track all sales made or purchases in the freelance domain. Although I’m pretty positive that’s not the reason why we’re seeing everyone create or get into NFTs.
With governments one by one approving of Bitcoin and other reputable chains like Ethereum enough to allow motion of funds and ETFs, the world is more engaged with NFTs. If we took anything from what happened in 2019; and when regulation comes knocking, we better be prepared. Central Bank Digital Currencies are just that critical warning and maybe the reason behind us seeing NFTs come out by the day before it’s too late and the open market closes.
They’ll gladly take your reputable coins from your crypto wallets in exchange for assets and collectables that may be worthless in a couple of years or potentially months…but what a thrill right? NFTs are a great way to expand blockchain knowledge in the public domain and engage with them to participate. It’s a safe bet to say that maybe 90% of the NFTs we’re seeing now will go; games and metaverses included. For the 10% that’ll stick around, be sure to keep a close eye on who are truly solving global problems that hinder our capabilities of scalability, accessibility, transparency, and most certainly, personalized custody of assets and a way of life.
Till next time!
