I asked ChatGPT the future of NFTs and its response was quite unusual
The phrase “anything is possible” often takes an interesting and unexpected turn every once in a while and the NFT craze is a perfect example.
Never did I imagine that pet rocks and cartoonish ape images would be among the most valuable things on the internet but hey, we live in a world of possibilities.
NFTs certainly turned up the heat at the height of the 2021 bull run, but that hype has died down since. But despite this, there are those that believe that the NFT market has a robust future that is still in its early stages.
If you are like most, you are probably wondering how that will come to fruition, or if it will in the first place. Especially because they are not necessarily backed by robust utility, but have largely been fueled by speculation.
Many investors in the NFT segment are now shifting their investments in favor of long-term growth. Consequently, the NFT segment achieved some growth during the bear market.
Wondering why I'm bullish on the #NFTFi space?? 🤔
Data from @DuneAnalytics shows the cumulative volume for borrowing against NFTs has recently crossed $1B – during a bear market! 📈
The market is maturing & so are the hodlers looking to unlock the full value of their NFTs. 👏🏼 pic.twitter.com/w06Kct2Yi9
— Flow 〽️ (@NFTFlow_) April 13, 2023
So, where exactly is the money flowing in the segment and will this facilitate robust growth in the future? These are questions whose answers are a bit of a hit or miss since the future is not set in stone.
But certain trends may offer some insights into what to expect based on key segments that have been experiencing continuous developments.
The next NFT market growth phase
I embarked on a mission to find out all I could regarding the future of the NFT market and decided to enlist a new ally, ChatGPT.
Given that the overall crypto market is building towards value, one can expect the NFT market to pursue a similar path. The ChatGPT AI shares similar sentiments. Here’s what it had to say when I asked about the type of NFT applications that will lead to mass adoption.
Unwrapping what these may help provide a clearer view of how the NFT landscape is shaping up. Perhaps you will find that there might be more to the most popular NFT projects.
The gaming segment is already a multi-billion dollar industry. There is no doubt that it will be one of the segments to experience radical changes.
One particular use case that comes to mind is in-game purchases. Blockchain tech makes it possible to own characters and game items and much more.
The likes of Axie Infinity dominated the gaming segment in 2021, demonstrating the level of growth possible in the segment.
Even the Bored Apes Yacht Club (BAYC) creator Yuga Labs, is looking to get a piece of the juicy pie. It is particularly one to watch this year because of its upcoming game titled Otherside.
Initial reports have compared the game with Fortnite and revealed that the game will allow players to own assets in NFT form.
Think of Fortnite: A real game has hundreds of different assets.
Unlike in Fortnite, in Otherside you will really be able to own a lot of those assets as NFTs.
Artifacts or resources could be next. 100k more Otherdeeds. And lots of stuff we don't even know about yet.
— wale.swoosh 🐳 (@waleswoosh) April 8, 2023
Yuga Labs aims to benchmark with Fortnite including the style of the game. If successful, it will potentially be adopted by millions of people.
Yuga Labs are not the only one banking on growth in the gaming industry. Multiple other projects are actively developing including Axie Infinity, Gods Unchained, The Sandbox, and Neon District.
I wanted to know the kind of advice that AI would give me if I wanted a strategy that would maximize my potential returns when investing in NFT gaming.
While giving a detailed answer, ChatPGT AI also gave a disclaimer that NFT investing is risky and advised doing proper research. How nice!
Art and collectibles
Wealthy people love investing in art, especially the pricier kind. If you study traditional art investing you will discover that fine art tends to appreciate in price.
This is the same principle behind NFT art, basically art in digital form. Obviously, this would not have been possible in the pre-blockchain era because of the double-spend problem.
Blockchain technology makes it easier to index and exchange digital forms of art. This means people can check ownership of an original art piece on the blockchain, facilitate ownership transfer and keep track of historical data such as the original artist and previous owners.
I personally have no experience with NFT art so I might not have the best insights. So I decided to see if ChatGPT would offer some useful tidbits. Here are the answers it provided:
Music and entertainment
Imagine if you could buy tickets to an event and have them verified on your phone. Or, picture this. You are an event planner and you want a system that can facilitate ticket sales with ease, minimal loss, and maximum efficiency.
NFT tech can make this possible. In fact, Ticketmaster is already exploring NFT-based ticket sales.
2/ Ticketmaster have launched token-gated ticket sales. Rolled out with Avenged Sevenfold if you had their Death Bats Club NFT you got priority access to tickets and reserved seating with no queues https://t.co/spu7YK1sZG
— ANDRE (@VibesLoula) April 8, 2023
The music and entertainment industry might be the industry to benefit the most from NFT tech. This is because the industry has multiple facets that can be upgraded or transformed by the tech. Song owners will soon be able to use NFT tech to roll out music sales, as well as issue copyrights.
On the other hand, NFTs and real estate are an unlikely combo but it might be one of the most potent collaborations. This is because it will facilitate fractional ownership.
Alternative methods of property ownership will be sought after, as property ownership becomes more expensive.
Fractured NFTs will make it easier for smaller investors to access more opportunities in the real estate industry.
Tokenization of Real World Assets (#RWA) such as #stocks and bonds on the #blockchain make buying and selling them more efficient and accessible for smaller investors through fractional ownership without the need of a traditional broker. 💹📄
Learn more:https://t.co/MFhr8p2A24 pic.twitter.com/f6sstgGB2l
— Verdant NFT (@VerdantNFT) April 14, 2023
The lucrative nature of the real estate industry makes it appealing to the masses and the fractional ownership approach might be the key to offering more access with low friction.
ChatGPT’s answers regarding the direction of the NFT market seem rooted in observations that are already taking place in the industry.
Note that these may not necessarily be the only approaches to NFTs. More NFT applications will likely pop up as the industry matures, and as the world leans towards more mass adoption.