Thread by @AlexIsBuilding

If you missed it, Mark Cuban (@mcuban) dropped some NFT knowledge bombs on the @fullsend #Podcast.

As someone who was one of the first to create #streaming online, his #wisdom on emerging tech ecosystems is extremely relevant.

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You can catch the snippet where he breaks down his perspective here:

Below I’ve captured a recap and my thoughts on how you can interpret and apply this knowledge 🧵

1️⃣ #NFTs are like the @Apple AppStore when it first launched.

Do you know what the highest ranking #paid app was in 2008?

🐠 Koi Pond - an app that showed you virtual fish on your screen.

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Honourable mention to 10th place, #iBeer - an app that let you look like you were drinking a beer 🍺

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🤔 Key insights 🤔

Most of the best usecases of #NFTs haven’t been imagined yet. It took 10 years+ to reach the mature app ecosystem that we have today.

The difference is, now if you pay close attention, you can financially benefit from buying into the right app early enough.

2️⃣ Critical mass comes when there are applications that people can’t live without.

Currently, there is no application that is making enough of an impact on people’s lives to hit this tipping point:

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🤔 Key insights 🤔

Right now the biggest barrier to entry is the friction and risks of #Web3.

Ask anyone on the street how they buy an NFT, I’d be surprised if you could find 1/100 that know.

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Furthermore, in #Web2 people click a lot of links without a second thought.

But if a link can cost you $1,000+, for now, people can happily live without that risk.

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2️⃣ The @instagram of #Web3 won’t be “Instagram - on Web3”

It’ll be a completely different #usecase that is built in a customer centric way, but not in the way that we currently think about apps.

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🤔 Key insights 🤔

If you’re a developer, be careful trying to replicate what you see in the existing world, in a pure sense.

I remember in 2016, people were building #decentralised Uber, or #decentralised AirBnB.

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But if decentralisation doesn’t enhance the product, and centralisation wasn’t the problem to begin with, then there is unlikely to be product market fit or a desire from customers.

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Instead look to create applications where #NFTs / #decentralisation solves problems that people are currently experiencing.

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For example, real-world #sneakerheads buying on the secondary market currently have massive issues with:
- Verifying authenticity
- International shipping
- Knowing supply

We’re solving this with our #NFT / #Physical sneaker that we are building (#BrainBoots)

🧵 (11/17)

3️⃣ He likes #Ethereum the best

Because Ethereum is driven by utility.

As it is utilised more, and applications grow, people will need to buy it to participate.

We saw this late last year when $ETH boomed alongside growth in #NFT demand and other applications.

🧵 (12/17)

3️⃣:

There needs to be a reason for people to hold a #crypto / #coin other than just as speculation.

Because otherwise when the market is down and the speculators leave, there is no reason to hold it, eventually fading away entirely.

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🤔 Key insights 🤔

If an NFTs pure utility is just speculation, and it can’t create demand through real world use cases, then it is likely to go up and down until it eventually fades away.

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⭐ Quick Summary: ⭐

✅ We’re early - keep an eye out for use cases that move the space forward

✅ Barriers to entry need to drop

✅ Web3 Apps need to be ‘must haves’ rather than ‘nice to haves’ in order for the space to take off

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✅ Ethereum has potential due to it starting to have enough use cases that people are buying in for the utility, not just the speculation.

✅ NFTs must enhance a use case in order for it to be considered utility. Otherwise it’s pure speculation.

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What are your thoughts on @markcuban’s take?

I’m posting #threads daily. Make sure to follow so that you never miss a breakdown.

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