Why NFTs will be a multi-trillion $ market by 2030
The real value of NFTs is something that very few people are talking about. But it will unlock trillions of $ of value.
The real value of NFTs is something that very few people talk about.
Here’s why I believe the NFT market will be worth TRILLIONS by the end of the decade.
Like most, I used to think of NFTs as little more than overpriced JPEGs… until I read @punk6529’s thread.
His thread opened the door to an idea that I now believe will be the basis of a multi-trillion dollar NFT market
“NFTs will turn intangible assets into tangible assets”
Consider the following intangibles:
• The value of your loyalty with a brand
• The value of your time as a celebrity / influencer / executive
• The value of a group of individuals with a shared mission
• The value of your skills as a gamer
• The value of your potential as an upcoming creator / musician / artist / athlete
• The value of your anonymous online persona
• …
Certainly, the intangibles above have SOME value.
But since you can’t provably own, transfer or trade them (not easily at least), that value remains locked up – inaccessible for the most part.
So how do you unlock the value of these intangibles? 👇
The traditional solution has been to spin up a new company that creates a market for the intangible asset.
For example, Airbnb created a market for the intangible value of your air mattress / couch / spare bedroom and therefore turned that into a tangible asset.
But most companies fail, and a 2-sided marketplace is one of the hardest kinds of businesses to start.
Furthermore, the market for many such intangibles is often too small to justify building a standalone business around it.
How many founders will choose to spend 5-10 years of their life creating a market to unlock the value of an intangible asset? How many will succeed?
It’s also worth noting that if a company somehow manages to create the market for your intangible asset, they will capture a lot of the value from unlocking that asset (again, Airbnb is a good example)
🚀 How do NFTs unlock this value? 🚀
By creating a composable, open standard asset that can represent (almost) any intangible.
i.e - NFTs.
Brands will tokenize loyalty
Games will tokenize your skills
Platforms like Reddit, Quora, etc will tokenize your contributions
Celebrities will tokenize their time
Creators will tokenize their potential
Collectives will tokenize membership and participation
... and all kinds of other things I haven't thought of.
NFTs are an open standard that anyone can build upon.
They are unique, ownable, verifiable, transferable, and tradable, which makes them a very good tangible representation of ANY asset.
(Note: Much of this applies to all forms of tokenization – including fungibles).
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This is one of the most important BIG picture ideas in web3 and not many people talk about this, so I hope to write a DEEP dive about this at some point.
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If you made it this far, you might enjoy reading my post about the future of NFTs.
And definitely, definitely read this thread by @punk6529: