The non-fungible token (NFT) revolution is here … and it’s here to stay.
NFTs could be one of the most valuable things investors ever own. And with this new asset class that’s emerged from the crypto revolution, every indication is that there will be enormous growth going forward.
This week, Weiss Ratings Financial News Anchor Jessica Borg speaks with NFT analyst Joel Kruger, editor of NFT Wealth Builder, about this lucrative new space. You can watch the video segment or continue reading for the full transcript.
Jessica Borg (narration): He’s considered one of the most accurate Bitcoin (BTC) forecasters.
Now, currency expert Joel Kruger is bringing his wealth of knowledge of crypto to the weekly service, NFT Wealth Builder.
JB: Joel, great to be with you. Tell us about the new service.
Joel Kruger: I come from a background of financial market strategy — research and strategy and trading — and this market is just an extension of that.
JB (narration): It’s an emerging $7 billion market that could soon explode into a $7 trillion one, with applications that are endless.
Right now, you can bid, buy, trade and sell anything from virtual galleries to virtual land.
JB: The space can be quite lucrative.
JK: I think what makes it so lucrative is that we’re in this new frontier.
We’re seeing the birth of the monetization of digital assets, and we’re just scratching the surface.
JB (narration): NFTs — non-fungible tokens — are unique units of data, essentially, stored on a blockchain, like a digital ledger.
JK: When you’re talking about digital assets, there are so many possibilities. There are so many different things that can be registered as unique digital assets, so that creates a very large market with tremendous possibilities.
JB (narration): Joel will show investors NFTs he thinks will soar in value over time, and help them build a diversified NFT portfolio.
JB: There are so many trends and aspects within the NFT space, tell us what you’ll be focused on.
JK: There are three different parts. The NFT is creating this ability for digital art to now retain value like physical art, so that’s one aspect … looking at and analyzing art.
JB (narration): And he’ll cover the aspect of community.
When you own one of a limited number of characters or pieces created — like this one made by Twitter (NYSE: TWTR) — you’re now part of that community, or tribe, which is also a plus.
JK: These communities come about through the ownership of these characters, and ownership of that character is also access to a community.
And there’s value added in being part of a community and what comes from that … so there’s investment through the utility of community, using these character NFTs and these types of projects.
JB (narration): And the third thing he’ll focus on is one of the most rapidly growing sectors, play-to-earn gaming. It’s where players can monetize playing video games.
JK: We have all, in some form or another, seen or played video games, and we’ve seen these characters that people play … and the idea now is instead of playing with these characters, maybe I can own one of these characters, maybe I can lease out of these characters using this NFT technology.
JB (narration): Joel has introductory videos where you can learn about the NFT marketplace.
Once you own Ether, or ETH, the native currency of the Ethereum (ETH) blockchain, you can start your NFT journey.
JK: How could you not be excited about this idea that we live in a digital world, and now there’s an economy around these digital assets that you have an opportunity to be a part of?
And they’re fun and they’re interesting! One of the exciting things about NFTs is you’re registering unique digital assets. Effectively, you’re making currencies out of anything.
So, instead of just looking at the euro, or the dollar, or the yen, or stocks, now you’re creating currencies around things that are actually interesting to you.
Now, all of a sudden, we’ve figured out a way to monetize things that could not be monetized and it’s all there to grab.
JB (narration): For digital art, there are a number of platforms to explore.
SuperRare (RARE) is one that’s carefully curated with single-edition pieces.
JK: SuperRare I like because I’m a sucker for innovators.
They have a tremendous pool of very, very talented artists. It’s extremely difficult to even apply to become an artist on SuperRare.
JB: Oh, really?
JK: You can’t just go on SuperRare and post art. You have to be accepted to the platform.
JB (narration): SuperRare just released its own native token, RARE, which Joel sees rising long term.
JK: ETH is the currency that drives the Ethereum blockchain, and then on the Ethereum blockchain there are all these little projects that are separate from Ether … these little currencies that are running on the Ethereum blockchain, but they are their own currencies, and they trade differently.
JB: You’re a big believer that investors should genuinely have a passion for what they’re buying.
JK: Having passion around this is so important because if you understand something and you believe in it, then it gives you that much more tolerance around the thing that you’re invested in.
Ultimately, you believe in this thing and you’re going to be with it. And I think that’s the type of attitude and mentality that you must have when you’re going into this type of an asset — you love it, and you love the idea of it.
And if you can have that mentality, then over the long run, it’s going to pay off tremendously.
JB (narration): Just one reason to ride into this new digital frontier.
JB: Joel Kruger, NFT strategist and investor, thank you for your expertise today.
JK: My pleasure, Jessica.
Best wishes,
The Weiss Ratings Team
