BlockTower has been excited about NFTs since our launch 3+ years ago, but we expect to triple down over the next 6 months and allocate $10m+ to the theme. Shill @xxstevelee (my colleague most focused on the sector) with ideas and pitches. A thread on NFTs to follow /1

2/ NFTs is a broad category. Gaming items and collectibles, digital art, insurance, intellectual property licenses...the list is endless. I'm interested in all of it, and almost every type of NFT built to date is likely to get traction eventually.

3/ Most NFT uses fit under the category as "so obvious as to be inevitable." We already see massive demand for centralized gaming items. Of course there will be demand for similar versions that can survive individual games and game studios.

4/ similarly, we've already seen demand for in-game artistic purchases in the earliest virtual worlds. As AR/VR worlds accelerate, we'll inevitably see massive demand for scarce digital art to populate those walls, as items for avatars to wear, etc.

5/ what's missing? Why isn't this already a billion dollar ecosystem? As with any new ecosystem, you need a lot of things to come together to cross the chasm to casual users. The "missing pieces" today differ by type of NFT.

6/ for digital art, the biggest missing piece is probably a lack of high "foot traffic" places to display the art. This will grow with increasing usage of virtual worlds, as well as with integration of art NFTs with existing virtual spaces. Probably also with AR growth.

7/ for gaming NFTs, I think it's the classic disruption model. Big game studios have little incentive to "decentralize." Small studios toying with NFTs have trouble gaining network effects. At some point we'll hit a tipping point where the extra user value overwhelms incumbents