The NFT market is a hot topic nowadays, but not everyone understands its true potential. Most people think it is a market dedicated exclusively to digital artistic expression and dismiss it as if it were a gamble or, even worse, the perception persists that it is something that is only for the rich.
The NFT market changes the world of creators
As a business journalist, I must confess that I believe we are facing the very first images of a new era that will impact the routines and business of all content creators: bloggers, podcasters, YouTubers, artists, storytellers, photographers, basically everyone who likes to share valuable content or has a following on social media.
I’ll try to explain why I think so and, more importantly, how content creators can take advantage of this opportunity.
But first, let’s understand what an NFT is. NFT stands for “non-fungible token”. We can think of it as a unique digital asset such as an art product, collectible cards, memes, gifs, video clips, audio clips, tweets, this article you’re reading now or an ebook, pretty much anything that can be created, stored and sold on a blockchain network.
Once tokenized, these assets can be bought, sold and traded using cryptocurrencies. We talked about this with Giulia Brusco, one of Italy’s leading blockchain and cryptocurrency experts, recognized by Wirex and The Fintech Times as one of the world’s most influential women in Crypto/Blockchain.
Last year’s activities include the first Italian Crypto Academy based on her teaching experience of the last ten years in corporate and academic environments.
Interview with Giulia Brusco
Hi Giulia, can you explain what NFTs are and what “Non-Fungible Token” means?
“Fungibility means interchangeability. So, any two units that can be exchanged evenly are fungible.
Let’s say I give you a ten-dollar note. If in return you give me two separate notes of five dollars each, we are even. This happens because each five-dollar note has the same value, no matter which one. Hence, money or legal currencies are fungible assets. In the same way, Bitcoin is a fungible token.
Think instead of two copies of a book by a famous author. They might have the same story and the same cover, but one of these copies is the first edition signed by the author and, therefore, unique.
Thus, you cannot trade them in a uniform way and so they cannot be called fungible.
Tokens are the same, their characteristic is that they are unique and not interchangeable. NFTs allow you to have a sort of digital certificate that work is yours and unchangeable”.
What are the main areas in which NFTs are used and may be used in the future?
“Very many, starting with art, music, games, and moving on to sports, real estate, publishing, even tweets, like Dorsey’s first one that sold for over $2 million.
In this regard, one of the projects I am pursuing with the important support of the Crypto/Blockchain community is the development of an NFT marketplace on hashtags, which is having an incredible success that surprised even us.”
You are issuing hashtags that become the property of those who buy them?
“Let’s say we created an ecosystem where, by registering to a platform, you can enter and participate in real auctions to buy hashtags related to famous people, events, cities, words, sports, TV shows, famous brands.
In short, anything that can become the subject of a hashtag can become yours thanks to the NFT mechanism. So, by buying it, you become the sole owner of that object, from which you can get tokens every time it is used. It works in a similar way to traditional copyright”.
Interesting! Do you think that NFTs are a passing fad or can they become a business with a long future?
“Well, I would say that after more than ten years in this market, I have seen a lot. And I believe, or rather I am sure, that NFTs, together with DeFi, are two of the most disruptive resources of the blockchain and crypto market, capable of revolutionizing the world of traditional finance.
The art world owes a lot to this new opportunity to sell its works. Leading auction houses, starting with Christie’s and Sotheby’s, have for some time now started to organize specific NFT events”.
Don’t you think that if you don’t already have a large following or a large community, it is difficult to make money selling something using NFTs?
“If we’re talking about communities, you’re talking to the right person, because I’ve been running groups in and out of the company since 2010 and supporting entrepreneurs and freelancers to set them up for a variety of reasons.
From launching a new product to introducing an additional production line, from carrying out a sustainability initiative to personal branding.
Visit giuliabrusco.com or my social channels to get an idea of what it means to develop a successful community.
So my answer is definitely that having a community that follows you and trusts you and what you do is fundamental, especially in a new and innovative sector like this.
Of course, you can always start from scratch, with the necessary initial difficulties, but conceptually if you have a project, it is already worth thinking in terms of blockchain technology to ensure innovative scalability”.
At the same time, I could ask: why do you spend time on Instagram, Facebook, TikTok, YouTube, LinkedIn or any other social media platform?
“I know I can find opportunities. And I also teach you how to create chances and opportunities quickly through professional and effective use of social channels. Think with me: do you remember the scepticism about Facebook in 2005 when it was little more than a diary?”
Would you recommend investing in NFTs now?
“Absolutely, but at the same time, you need to have the right tools to know how to deal with this new and innovative market.
In my opinion, you have to rely on experts and approach the market with the right spirit and clear ideas. Everything is still in its nascent phase, just like the Internet in 1995. This is Web 3.0. If all goes well, as I believe it will, NFTs will be omnipresent”.