Currently, the NFT market is one of the hottest, most talked-about topics around the world. NFTs, or non-fungible tokens, have garnered massive amounts of interest from creators, investors, and curious spectators alike. Yet, what is the future of NFTs?
One of the main criticisms of NFT art is an “unjustifiably high cost.” However, it’s important to remember our economics lessons here. Nobody would purchase them if this were true.
Despite the talk of NFTs being “useless” and overpriced, the technology has found its way into several business niches. This is especially true of the creator’s economy. The market as a whole is expected to see a CAGR of more than 35 percent through 2026, growing by just over $147 billion.
As an investor, I’ve backed the leader of the creator economy – Patreon. The company is a platform that connects creators with fans and allows fans to give financial support in exchange for content and exclusive rewards. Right now, Patreon is worth more than $4 billion.
The NFT market can perform a similar function but on a grander, more decentralized scale. In 2022, there will be a great revolution in the creator industry, thanks to NFT technology. The rules of creating have changed, and this new era allows creators to own their content and communities. It also gives them more power over their assets, which translates to even greater independence.
So, how will this change the market? Here are my predictions.
1. Creators will have more freedom.
One of the significant points of interest for NFTs and cryptocurrencies is the idea of decentralized ownership. In the NFT space, this specifically means that there’s no central controlling body or censorship. With no single entity to moderate the content, the metaverse can provide a free space for self-expression without limitations.
It also means that creators will be able to build a community based solely on their values. Rather than conforming to the values of a brand, country, or platform. The decentralized nature of the technology means that NFTs will be leading the charge toward a “final frontier” of actual free speech.
Finally, the fact that creators can earn money based on every NFT transaction means that they will be fully independent, rather than depending on third parties that take a cut of the proceeds.
2. NFTs will power a diverse metaverse that will reach into the real world.
The metaverse is still in its infancy, relatively speaking. However, I believe we’ll see a substantial increase in the number of metaverses appearing in the near future. I also expect these metaverses to be filled with NFT items and have their own unique economic systems.
Gartner predicts that 25 percent of people will spend at least an hour per day inside the metaverse, and they believe that a combination of crypto and NFTs will be the driving force of the virtual economy.
There will almost certainly be an overlap between the real world and the metaverse. Cross-world synergies, collaborative artworks, and crossovers will blend the two realities into something more significant. And more exciting than we’ve ever seen.
One important thing to understand is that the metaverse is far from reaching its final form. The future that experts are forecasting is for a metaverse that has yet to fully take shape. Because we can expect such a tremendous amount of growth and maturity in the concept over the next few years, the potential for NFTs is vast.
3. The NFT industry will see a substantial influx of private investors and creators.
Once investors and creators begin to truly understand all of the potential advantages of NFTs, there will be an explosion of interest in the industry overall. We are only in the beginning stages now. This means that there are only a relatively small number of early adopters on the playing field.
The numbers show that there are currently only about 360,000 NFT owners around the world. However, NFT sales grew by 131 times between 2020 and 2021, and the NFT market is presently valued at $40 billion and rising.
As the industry continues to build interest and pick up steam, all of these new players will be able to go through the adaptation period to learn how to navigate the new tech. Investors will learn the intricacies of smart metaverse investment. Creators will learn how to make the most of their newly expanded creative capabilities.
NFTs are the future of the virtual economy.
Because NFTs and the metaverse are still in their early stages, there is a healthy amount of skepticism from the public about whether or not they are viable over the long term. I firmly believe that the future of NFTs will mean they only grow in popularity with time. As the metaverse takes shape and becomes more widespread, NFTs will have the power to completely revolutionize how we buy, sell and create, both online and in the real world.