Thread by @El_Crypto_Chapo

There are a lot of people, many who I greatly respect & have a wealth of experience in crypto, who are not currently in #NFT bc they still don't believe in it. They still don't understand why people are paying absurd amounts of $$ for jpegs.

Allow me to explain (thread) 👇👇👇

1) In the last year, the crypto market has expanded by $1.7T. This has created A LOT of newfound wealth, predominately in people who are ages 20-35. There's a common theme amongst these newly minted millionaires: Their online persona/status is more important than IRL status.

2) New millionaires almost always seek status symbols as a way to show the world that they've "made it". The long-standing Lambo meme is the textbook example.

If these new millionaires would buy a Lambo, however, who would they show it off to? How many people would see it? 🤷‍♂️

3) New money people have a larger network online than they do IRL. The people they care about, those they respect & most importantly...the ones they WANT respect from don't exist IRL, they're here. Online. Doesn't it make more sense then, to value an online status symbol more?

4) By having provable ownership of a digital status symbol like #EtherRocks, BAYC, Punks, @etherlambos, etc it allows them to flex to the world every day. The visibility of their "I made it" statement piece is so much greater than anything they could ever have in the real world.

5) Sound silly? This has been going on for ages - look at traditional collectors of art, sports cards, cars, etc. Look at the luxury brand market with Hermes selling $10K handbags that are no different than a $100 one with a different logo. The real world isn't rational either.

6) The #NFT craze goes WAY beyond status symbols, however. There is an interesting sentimental value to NFT's that doesn't exist with altcoins/tokens. People actually like (and sometimes love) what they hold. Nobody loves the way their shitcoin looks and plans on holding forever.

7) The emotional aspect of the NFT trading market is also generally friendlier for investors. Liquidity is hard to measure (and thus not considered much), there are no big red candles to scare people into selling & the "value" is considered to be the floor...which is idealistic.

8) Most important of all might be the communities & access that being an NFT owner provides. Most of these communities live in Discord, where ownership of the NFT can be validated. By owning an NFT, it grants you access into private chats - an exclusive club.

9) The new money millionaires, just like everyone on earth, like the feeling of being a part of something. NFT's provide this. For the elite projects like Punks, BAYC, Lambos, etc these private groups are comprised of the who's who of the crypto space. Club membership is valued.

10) NFT collections are inherently deflationary due to collectors. As more of the NFT collections fall into the hands of collectors, the circulating supply is reduced. This natural phenomenon leads to continue price appreciation based on simple supply/demand economics.

11) NFT's are fun & highly addictive. Buying packs or unrevealed NFT's gives users the ability to get the rush of gambling! Like buying a pack of baseball cards when you were a kid & hoping for a rare one - this market provides the same dopamine hit. Don't underestimate this.

12) There are a bunch of "right-clickers" out there like @PeterMcCormack who mock the NFT owners as they can simply copy/paste what they claim to "own". If you took a picture of the Mona Lisa and had a print made for your house, would anyone say you had the Mona Lisa hanging? NO

13) Sure, you can have copies...you can have replicas...but it's not the real thing, and ownership of the real thing is now provable on-chain. This is the real revolution, the first time that ownership of digital assets can be validated. Think about this for a moment.

14) All digital assets (photos, fonts, car titles, deeds, artwork, personal data, literally ANYTHING) can now be provably owned, bought, sold & traded for the first time in history. The whole world is getting digitized & NFT's are the means to own these assets. Game-changer.

15) There has been a focus on historic NFT's from 2016-2018 (pre Autoglyphs). Why? Because they're FIRSTS. The first 100 of ANYTHING that changed the world is valuable as a collectible. Think the first 100 Iphones ever, first 100 televisions, first 100 cars, etc have value?

16) Summary: NFT buyers today are getting a whole lot wrapped up in one package. By purchasing an NFT they get to own a piece of history, get an appreciating asset as an investment, get access to a club, get to be part of a community, have a status symbol to showcase & have FUN.

17) Don't bet on this trend stalling out any time soon. @opensea has <200K active users, which is NOTHING. Until we talk about active users rounding off to the nearest million...we've got a long road of growth ahead. I'm personally excited to be part of a major revolution 📈🔥