What’s next in the NFT world?
Since NFTs exist under the blockchain umbrella cryptocurrency, investors and collectors are wondering whether cryptocurrency will knock out the new NFT market before it even spreads its wings.
See our list: 100 most influential money experts
Find: 13 Ways to Make $ 100 in Just One Day
It is not likely, but it is also wrong to believe that NFTs will continue in their current form as investments and collectibles. NFTs – digital representations of original ownership – have the potential for functional, truly useful utility as the Internet completes its third metamorphosis, but a major shift in public attitudes must come first.
Beyond Collectibles: The Rise of Subscription NFTs
Harrison Hosking is marketing manager for KEAK, which builds tools for detecting, trading and managing NFT projects. His team believes that the NFT area will develop to resemble the early days of the mobile apps market.
Live Richer Podcast: Trading Secrets – from Crypto to Congress – with WallStreetBets
“Do you remember 10-15 years ago when apps were priced at $ 0.99 to $ 9.99? There were no subscriptions and few revenue streams, if any, for companies when users had paid the first fee,” Hosking said. Of the 200 most lucrative apps in the app store, only one charges users to download it: Minecraft at # 163. Virtually all apps are free and supported by either subscriptions, ads or a mix of both. “
Trade Bitcoin and other cryptocurrencies in 3 minutes.
- Join the crypto exchange that has had industry-leading security from day one.
- An easy, secure way to buy and sell cryptocurrencies
- Sign up for Gemini and get $ 7 in ETH
According to Hosking, NFTs are ready to follow the mobile app model. Their creators will learn how to make money without requiring consumers to buy them.
Free NFTs as a pin in the Web3 economy
The third iteration of the Internet – Web 3.0 or Web3 – will be a decentralized web centered around digital ownership and a token-based economy. Blockchain, crypto and NFTs will be at the heart of Web3 – and this is where Hosking thinks the free NFT revolution will really emerge.
“Free NFTs enable companies to leverage their NFTs as marketing resources while providing future revenue streams through trade taxes,” Hosking said. “We believe that the equivalent of a free trial of Web3 will be free NFTs because it is free, tangible value for the user that opens the door to future revenue generation for businesses.”
On the other hand, blockchain’s inherent openness and openness will force Web3 startups to adapt.
“In many cases, the data they use to run their products is freely available on the blockchain for everyone to use,” Hosking said. «Moats will be built with distribution and network effects, not proprietary data. If true, the smart move for teams will be to use the perceived value of the NFTs they create for users on board, get distribution for their products and delight their early users. The shift has already begun. “
The revolution depends on widespread adoption
Sudhir Khatwani, crypto expert and founder of The Money Mongers, agrees with Hosking that NFTs have the potential to drive the next incarnation of the internet. But he believes the key is to change the popular image of NFTs as digital auction news for eccentric collectors.
“NFTs have many uses,” Khatwani said. “They can help develop tokenized ownership systems in real estate, and they can expand the field of digital work, but the common perception today is that NFTs are about digital art. The current fixation with NFTs as collectibles can be a stumbling block. for the development of a thriving NFT ecosystem in the future. In my opinion, whether NFTs will have a boom in the future or not depends on whether they just stay within the collector’s field or whether they continue to be tools. “
The marketplace is currently far from achieving that kind of critical mass.
“Right now, the biggest problem with NFTs is adoption,” said Stefan Ristic of BitcoinMiningSoftware.com. “According to Roger Ver, whose lecture I listened to at the Tomorrow Conference, only 0.0005% of people are currently involved in NFTs.”
Mainstream adoption would crash into scalability
Mainstream adoption may be necessary, but it is simply not possible – at least not yet. The current infrastructure could never be scaled to absorb all the new activity.
“I think the next big thing for NFTs is scalability,” said Nick Ryley, founder and owner of the PC Geekz technology blog. “Right now there are only a few blockchains that can handle the volume of transactions that will be needed for mass adoption. Ethereum is one of them, but it is still not fast or cheap enough. I think we will see new platforms emerge that will be Specially built for NFTs that can handle the transaction volume and speed required. “
If NFTs are not going to be digital artwork, what are they going to be?
Kidyba Iryna, CFO of the crypto company Simple, agrees that the concept of NFTs purely as digital art is becoming obsolete – but she believes that games to make money will follow it out the door. This will allow NFTs to reach their full potential as a staple in the Web3 economy.
“The NFT market will continue to grow, but interest in digital art and GameFi will decline,” said Iryna. “The use of financial NFTs, the use of exchangeable tokens to mark real assets, NFTs in metal villages, NFTs as tickets, NFTs as tokenized rights, etc., will grow in popularity.”
More from GOBankingRates
