What NFTs mean for ETH
An under-appreciated part of its fundamental narrative
Ryan Sean Adams, Founder of Mythos Capital, posted a short but thought-provoking tweet storm this morning about non-fungible tokens (NFTs) and Ethereum that is worth reading:
I’ve been thinking more about the NFT opportunity lately and I don’t think it’s getting enough attention, maybe because it’s still pretty nebulous as a concept. But I happen to agree with Ryan that (1) NFTs could become a trillion dollar asset class, (2) Ethereum is best-positioned to win this category, and (3) NFT scaling is much closer than we think. I also like NFTs because they don’t carry much regulatory risk.
Above all else, NFT platforms need to optimize for immutability and censorship resistance. If they don’t, the digital analog of something like this isn’t possible —
Therefore Ethereum, which makes a number of tradeoffs in favor of security, makes a lot of sense as the platform best positioned to secure valuable NFTs when you think about it.
Finally, it’s also worth considering what underpinning a huge NFT economy could mean for ETH’s perception to investors as a store of value. I happen to think it will have a profound impact, which ties in nicely to our thesis at DTC that Store of Value will be a fragmented category with multiple long-term winners.
Crypto Kitties are just the first application!