Recently the art and music industries have witnessed an explosion of NFTs bursting onto the scene. Let’s break down the buzz.
From humble beginnings
Once upon a time, the dawn of the internet was called a fad that wouldn’t last (lol)—yet here we are. Not surprisingly, the burst of NFTs onto the scene has drawn the same comparison.
What was once a niche technology, NFTs have begun straddling the line of mainstream adoption. What does that mean in context? Well, NFTs are sufficiently popular that basketball fans can trade, buy and sell digital cards on the NBA Top Shot site, however, less than 1% of the world’s population has a crypto wallet.
What’s the potential?
Digital assets allow someone to sell anything digital (or sometimes pieces of it) using tokens.
This proof of ownership capability has immense promise beyond just art and music NFTs. By acting as the go-between for these transactions, NFTs could “expand their service” to enterprise corporations and new industries which would benefit from this technology. That’s why some believe NFTs are worth millions—for their application to other industries such as trade. We can’t claim to be Nostradmus, but the tech is versatile and functional.🤷
Come for the tokens, stay for the community
Throughout history, rich people have used art as a medium in which to store value to hope for its eventual increase. To a large degree, the crypto community behaves similarly. Many folks who buy NFTs are hoping their present day investment will one day appreciate. It’s just a nice bonus that it’s safe via decentralization and not stored in an underground vault.
Those who buy NFTs parallel art collectors in that an emotional allure can be attached to certain pieces or specific creators. Some buyers appreciate the unique connection to the creator. Despite how it may appear, the crypto community is relatively small and rather tight knit. Buyers aren’t always fans, they can be folks from within the community who are eager to support another enthusiast. In the long run though, our socioeconomic desires are likely to determine the direction of NFTs.