• Why We’re Bullish on Crypto Collectibles (NFTs)
  • By Eric Elliott
  • The Nuggets translation Project
  • Permanent link to this article: github.com/xitu/gold-m…
  • Translator: portandbridge
  • Proofread by: StellaBauhinia, Ezioyuan

When I was talking to an investor about NFT recently, he asked me an interesting question: “Why do people buy music collectibles?”

Because their appeal is irresistible. Music fans buy all kinds of collectibles, such as signed albums, limited edition posters, concert T-shirts, and signed guitars; We even buy sporting goods like skateboards or motocross goggles. We decorate the walls with limited-edition posters and photos, and line the display shelves with color-box collections, photo albums and mystery gift boxes. We express ourselves in our favorite music and find like-minded friends.

We buy these things because we love the musicians. We want to support the musicians we love so that they can continue to make music, write music of great value and take their place in music history. It’s hard to resist, and it’s fun to act on it. We enjoy viewing our collections and sharing them with others.

There are millions of us, and our love of collectibles attracts others. Investors collect because they know that, over time, this drive has the potential to deliver huge returns that will grow exponentially. Buyers like the Hard Rock Cafe and the Rock and Roll Hall of Fame are motivated to appeal to people who want to feel close to their idols, so, While they make money by selling tickets to fans at relatively low prices, their collections also appreciate in value.

Collectibles are an interesting segment of the trillion-dollar market that NFT could easily grow into, and could grow significantly as NFT enters the mainstream. The total value of the music merchandise primary market reached $3.1 billion in 2018, up 9.4% from 2017. And a lot of that goes into the secondary market every year. On average, each item is typically held by a collector for about 7-10 years before entering the secondary market. The number of music-related items on the market has tripled in the past two years. These numbers will rise as more bands produce more collectibles and classic collectibles repeatedly hit the market.

In 1984, a Beatles drum skin sold at auction for $6,550. 1994 A Beatles drum skin from an appearance on the Ed Sullivan Show sold for $44,000 at Sotheby’s. In November 2015, the skin sold for $2.05 million at Julien’s auction house. (Source of data)

Due to factors such as the globalization of the collectors’ market, the value of musical collectibles from famous musicians can increase exponentially over time: greater demand and more groups of collectors entering the market drive up the prices of limited collectibles. The NFT market brings buyers, sellers, and collectors together on a fun, addictive, and easy-to-use platform that is subject to network effects and unleashing this demand on a larger scale.

The value of the music collectibles market is huge and attractive. It is driven by our need for recognition and engagement with the music we love.

The same investor asked me: “Don’t collectors want something tangible?” After all, if an antique Gibson Les Paul once played by your favorite guitarist were a purely digital object, you wouldn’t be able to hold it in your hand and feel its weight. He had the right idea. Physical goods have great value and should be able to be traded on the NFT market. Instead of a world dominated entirely by NFT in digital form, we are looking at a market open to a unique and limited number of assets: pure digital tokens, or a mixture of digital and physical tokens, and immutable digital credentials that record ownership of physical objects.

We believe a similar approach could make a wide range of unique, real-world objects, including collection-edition trainers and real estate, safer, provide proof of authenticity and combat the market for counterfeit goods; But we are focusing on markets we know and love.

But even purely digital tokens have a lot of value, as the experience of holding digital tokens can be increasingly enriched by rolling out upgrades, enhancements, and even third-party apps that add new digital experiences to existing NFT. This creates a new level of network effects in the collectibles market, which we believe will play an important role as NFT valuations increase over time. There is a huge market for buying video game items in games. According to Epic Games, players of the “Fortress Heroes” franchise alone spent more than $1 billion on items such as character costumes (called “skins”). NFT allows players to transfer purchased items between games, play with them in different ways, and sell them more easily on the second-hand market.

The richer the experience created for an object, the more meaningful it is to its owner. This brings great potential to limited edition items — whoever is interested in a limited edition can create a unique experience for it and add value to it. While the quality of physical objects declines over time, the quality of digital objects can increase, driving future valuations beyond pure physical collectibles.

It is easy to be sceptical about the potential of NFT. People were similarly sceptical when cars were a novelty. Like the car before it, NFT has the potential to make an important aspect of social behaviour more efficient and valuable.

Let’s BUIDL up.

We are building the future shape of digital collectibles associated with celebrities. Cryptobling.

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Eric Elliott is an expert on distributed systems and the author of Composing Software and Programming JavaScript Applications. He is co-founder of DevAnywhere. IO, where he teaches developers the skills they need to work remotely and enjoy work-life balance. He built and directed the development team for the crypto project, and he has worked on software experiences for companies, groups and organizations including Adobe Systems, Zumba Fitness, The Wall Street Journal, ESPN, BBC, just to name a few. Usher, Frank Ocean, Metallica and many other top artists.

He lives in the middle of nowhere, with the most beautiful woman in the world. He enjoyed it.

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