1/ Like all profound technology trends, CryptoKitties is starting off looking like a toy. Despite drop in its own volumes, it is the starting gun for something bigger. (Image via @bgurley ) 
2/ In reality, it is the first wave of eternally persistent digital collectibles. Unlike a standard digital asset, CryptoKitties are permanent on the blockchain versus a good rented from a centralized network.
3/ For example, if you bought an item in a traditional video game, that item is maintained at the whim of the game owners. They can shut the game or remove the item at any time.
4/ For CryptoKitties and other ERC721 tokens, you are the final owner of the digital item. You have an eternal digital asset - it is yours for as long as the blockchain persists.
5/ You can create smart contracts w your Eternal Asset. You can securitize, derivative & sell portions of it. You can leave your CryptoKittie (or something like it) to your great grandchildren as a digital heirloom. Some set of Eternal Assets will have value in hundreds of years.
6/ In parallel, since everything is open source developers can take blockchain based games & remix- mix and match digital goods and gaming mechanics. Clones of games will be mated with hybrid offspring digital goods etc. Exciting new things to come in long run.
7/ While it is unclear which digital assets will become "Eternal Assets" - i.e. maintain their value over the decades, it is undoubtedly coming.
8/ I would hazard in the next 5 years we will see an artist develop Eternal Assets on blockchain that will be considered fine art 200 years from now.
