| The Future of NFTs
1. PFPs
99% of these are going to zero.
Those that remain around will:
a) Be associated with iconic brands like Nike, Disney, or Chanel. (Bored Apes has turned into this)
b) Have utility. Essentially no different than a membership card with cool art. If the membership has value, the NFT will, and not because it's an NFT. The Permie is a great example as long as crypto conferences will continue (and I plan to snag one if I can)
c) Be really cool art. The value would simply be from desiring to own cool art.
c) Tailor-made for the individual purchasing it. Again, this usually goes back to art or utility.
2. Entertainment
It is clear to me that NFTs provide a superior use case here, or at least, with some issues worked out, it is easy to see how they will be implemented. These industries are ripe for disruption.
NFTs will dominate and transform these industries: - Art
- Collectibles (like baseball cards)
- Gaming
- Music
- Magazine subscriptions
- Other ticketing functions (such as sporting events)
3. Partial Ownership of Projects
My bets are on 0.
I've seen NFTs that offer this, and these are just securities under another name. I see this use case being brutally crushed by the SEC and a few examples of founders going to jail.
4. Real Estate, Voting, IDs, etc.
I have previously been bullish on these. I am skeptical that these use cases are ever going to happen, and I am certain it won't be in the next 10 years. I don't see how this makes anything better, let alone 10x better. Governments and banks will not gain any benefit from giving up control of these functions.
Real Estate NFTs sound cool, but I just see no use case. Digitizing all that paperwork makes sense—but companies can do this without an NFT. And it's doubtful everyone is going to want all their large real estate purchases on the Ethereum blockchain.
Transparent voting sounds great, but with so many security hacks on DApps in the past few years, there are simply too many points of attack to put voting on a blockchain, throwing in NFT IDs that can be stolen, multiple layers, etc.
Vitalik may disagree with me, but this is simply too unwieldy to build. It's not going to happen in the next decade. It might happen one day, but I don't see it. How could one invest in this future?
As someone who doesn't have a few million sitting around to gamble with, here is the simplest way:
1. DCA into a blockchain that will benefit from the growth of NFTs. I am most bullish on Ethereum.
There are other horses in the race, but I back the one with the best odds of success because it's currently winning.
2. Pick up some NFTs that offer utility that you want or art that you like. Treat them more like pets or memberships than penny stocks.
Have a great rest of the week!
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