By Valentina Zakirova
Currently, the NFT market is one of the hottest and most discussed topics in the world. NFTs, or non-fungible tokens, have garnered huge interest from creators, investors, and curious onlookers.
One of the main criticisms of NFT art is “unjustified cost”. However, it’s important to remember our economics lessons here: no one would buy them if they were true.
Despite the rhetoric that NFTs are “useless” and too expensive, the technology has found its way into several market niches, especially the creator economy. The market as a whole is expected to grow at a CAGR of over 35% through 2026, growing just over $147 billion.
As an investor, I have backed the leader in the creator economy – Patreon. The company is a platform that connects creators with fans and allows fans to provide financial support in exchange for content and exclusive rewards. Right now, Patreon is worth over $4 billion.
The NFT market can fulfill a similar function but on a larger and more decentralized scale. In 2022, there will be a great revolution in the creator industry, thanks to NFT technology. The rules of creation have changed, and this new era allows creators to own their content and their communities. It also gives them more power over their assets, which results in even greater independence.
So how will this change the market? Here are my predictions.
1. Creators will have more freedom.
One of the important points of interest for NFTs and cryptocurrencies is the idea of decentralized ownership. In the NFT space, this specifically means that there is no central oversight body or censorship. Without a single entity to moderate content, the metaverse can provide free space for limitless self-expression.
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 lead the charge towards a “final frontier” of real freedom of expression.
Finally, the fact that creators can earn money based on each NFT transaction means that they will be completely independent, rather than dependent on third parties who 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 think we will see a substantial increase in the number of metaverses appearing in the near future. I also expect these metaverses to be filled with NFT elements and have their own unique economic systems.
Gartner predicts that 25% of people will spend at least an hour a day inside the metaverse, and they believe a combination of crypto and NFT will drive the virtual economy.
There will almost certainly be some overlap between the real world and the metaverse. Synergies between worlds, collaborative artwork, and crossovers will merge the two realities into something more meaningful and 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 predict is that of a metaverse that has yet to fully take shape. Because we can expect such growth and concept maturity 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 start to really understand all the potential benefits of NFTs, there will be an explosion of interest in the whole industry. We are only at the beginning, which means that there are only a relatively small number of early adopters on the playing field.
Figures show that there are currently only around 360,000 NFT owners worldwide. However, NFT sales have increased 131 times between 2020 and 2021, and the NFT market is currently valued at $40 billion and growing.
As the industry continues to generate interest and grow, all of these new players will be able to go through the adjustment period to learn how to navigate the new technology. Investors will learn the intricacies of smart investing in the metaverse, and creators will learn how to make the most of their newly expanded creative abilities.
NFTs are the future of the virtual economy
Since NFTs and the metaverse are still in their early stages, the public is very skeptical about whether or not they will be viable in the long term. I firmly believe that NFTs will only grow in popularity over time. As the metaverse takes shape and becomes more widespread, NFTs will have the power to completely revolutionize the way we buy, sell and create, both online and in the real world.