Hey DEFI TIMES community,
Have you ever bought an NFT yet? Probably most of you have. Whether you bought digital art on OpenSea or just a simple ENS domain… most crypto people already made their first experiences when it comes to NFTs.
There’s a lot of hype and buzz around NFTs at the moment, and most of them will probably be worthless 10 years from now.
But don’t be mistaken: NFTs will significantly change the way we present ourselves on the internet.
They are status symbols, digital identities, and a lot more. They are more than just JPEGs!
I strongly believe that NFTs will become a completely new asset class we have never seen before - something that could never have existed before the internet.
NFTs make art and collectibles way more efficient; they revolutionize the way we interact on the internet… and the way we identify ourselves!
To front-run this opportunity... It’s super important for you to deeply understand where we are heading!
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The Pseudonymous Economy
If you are on Crypto Twitter, you probably noticed the avatar movement. People are buying NFTs and make them their profile pictures.
The movement is taking off right now because people finally have a way to show off their NFTs. It’s actually super fun to watch!
The best examples are CryptoPunks! We talked about them several times in the newsletter and podcast. CryptoPunks exploded in popularity in the past months and prices have been skyrocketing. Right now, you cannot get a single CryptoPunk under $100,000. It’s insane!
People are buying CryptoPunks and make them their profile pictures on Twitter. They are hiding their true identity behind their avatars.
Other examples are Bored apes and Penguins. If you own an ape, you officially belong to the Bored Ape community. They’re part of your online identity.
The trend is clear: NFTs will be increasingly used as status symbols and a method of identification in the future. But the avatar movement on Crypto Twitter is just the beginning of a much bigger and more important revolution: The pseudonymous economy!
Many influential and bright minds, like Balaji Srinivasan, have talked about the pseudonymous economy for a long time now. And it seems like… NFTs are the key to make it happen!
But what is the pseudonymous economy? It’s basically the idea that we won’t share our real identity on the internet. Instead, we will interact with each other under a pseudonym.
It sounds like a bad idea at first. But when you think about it more, you realize that the pseudonymous economy actually solves some of the critical problems of the 21st century. Balaji describes it in the following way:
“The pseudonymous economy is the foundation for muscular classical liberalism that is capable of standing up in today’s information environment. Rather than make naive appeals to people to look past gender or race, or to not cancel or to not discriminate online, instead we make it impossible to do that by taking away that information entirely with realistic avatars and fully functional pseudonyms.”
By hiding our names behind avatars, we establish an environment that is free from racism, prejudice, and bias. It’s a completely neutral economy, where only the output truly matters.
Do you create awesome content? Congrats, you will be rewarded - no matter your background!
Does your content suck? Well, I have bad news for you!
The pseudonymous economy is the way forwards and we are seeing it happen right now!
And it turns out that NFTs will be crucial to turn this into reality!
NFTs as Digital Identities
As the pseudonymous economy is growing, we will see NFTs increasingly being used as little digital identities.
When we talked about digital identity in the past, we referred to the fact that we will bring our legal IDs to the blockchain. Your identity is precious and it has to be documented somewhere. It can either be stored on a centralized database, controlled by the state, or it’s secured by a decentralized blockchain. If you ask me, I prefer the second option.
However, the process of convincing government officials that this is the way to go is super hard. Don’t expect it to happen in the next few years.
Luckily we have NFTs, which we can use as substitute methods of identification on the internet.
Imagine you own the Ethereum address, where CryptoPunk #46 sits on. In that case, you can identify yourself anywhere on the internet using your CryptoPunk.
This is a trend that is likely to continue.
NFTs will shape the way we present ourselves on the internet. We will have social networking sites specifically dedicated to people who want to present their NFTs to the world.
We will use NFTs as commonly as we use Instagram today. People just don’t know it yet - and that’s the opportunity for us to front-run this movement!
NFTs will be used as little digital identities in the future. The avatar movement on Twitter is just the beginning. People are starting to use Penguins, CryptoPunks, and Apes as their profile pictures.
Soon you will be able to use your punk as a log-in method on your favorite decentralized social media platform.
You will use NFTs as status symbols, proof of community, methods of identification - there is no limit to what we can do with them!
NFTs are a completely new and unexplored assets class and I’m super excited to see what the smart minds of crypto will come up with!
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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.