When the world went mad. From online consumption to digital consumption

Yesterday was the plot twist of one of the most expensive NFT art auction in the world. Beeple's "EVERYDAYS: THE FIRST 5000 DAYS" art piece was finally purchased for the modest sum of $70 million with fees, after ten last minutes full of twists and turns! The Crypto world is again on the headlines and amazes people with every day's new high reached. While we are undoubtedly experiencing a bubble phenomenon, I genuinely believe there is an underlying emerging trend. But why would people spend hundreds, even thousands of dollars to buy intangible objects, and why will this take an unprecedented magnitude?

NFTs are just an extension of existing products.

Digital goods are not new. Just think of video games where people can buy skins to modify the appearance of their character. The main difference with NFTs is the idea of ownership. Exceptions apart, you can hardly trade your skins with other players. Meanwhile, people crave these digital goods. For instance, a study from LendEDU on Fortnite players' expense for in-game goods, released in 2018, demonstrates that 59% of players spent money on in-game money, which represented, on average, $85 per player. The trend covered new horizons in 2020, with the new Nintendo Switch version of Animal Crossing, where people ould create their own outfits and customize their furniture.

Now let's focus more on NFTs and how they are perceived and used. A rapid glance at the sales ranking shows us that NFTs are

1. Collectible (NBA top shot, CryptoPunks): People buy the NFT, hoping the value will increase over time. They are the Pokemon card of today.

2. Art piece

3. In-game items & goods (Axis Infinity, Gods Unchained): People can buy items to play the game, trade, or speculate.

Everything mentioned already exists. Why would we add the blockchain layer?

NFTs are a necessary piece for virtual life.

Back with Fortnite. The business model they have developed for Fortnite, freemium with the season pass and collectible, and the game mechanisms were part of success' reasons. But more than a game, Fortnite became a social media. This article explains it pretty well. It is the place you meet your friends after school, complain about your day, and brag about your new skins.

Fortnite is far from being the only example. I took the video game example, but classic social media platforms are the same. People are trying to have a good time with their friends, show off, construct their digital identity, meet new people, etc.

I see NFTs as a way to define who people are. A way to expose your thoughts and personality and the tribes you are part of. NFTs are a way to fulfill the belongingness and esteem needs of people. These digital goods will characterize which community you are part of, how committed and famous you are within it.

One project that might follow this trend is Genies. They are proposing users create an avatar and pay for accessories to assert their style. The company has partnered with big brands to offer unique outfits, such as Gucci.

NFTs are still at the beginning of their existence. Plenty of possibilities and opportunities remain to be explored. The next few years will be fascinating to observe and analyze.

I hope you enjoyed the reading! See yah over the next crypto note!!!

Posted Using LeoFinance ^Beta