Understanding the Hype behind Non-Fungible Tokens (NFTs) and How to Actually Use What You Read

Understanding the Hype behind Non-Fungible Tokens (NFTs) and How to Actually Use What You Read

In recent years, Non-Fungible Tokens (NFTs) have gained significant attention and popularity. In 2020 alone, the total market for NFTs reached $338 million, with a Compound Annual Growth Rate (CAGR) of 102% from 2018. But what exactly is behind the hype of NFTs? And how can we effectively use the information we read? Let's delve deeper into these topics and explore the common points connecting them.

NFTs, often associated with digital art and collectibles, provide holders with a sense of 'real' ownership. Both emotionally and legally, NFTs are seen as unique assets. According to a survey by NonFungible and L'Atelier BNP Paribas, 68.4% of NFT holders reported having emotional attachment to their NFTs. This emotional attachment is not surprising, as the psychology of collecting is a widespread phenomenon, even among adults.

The concept of collecting is deeply ingrained in human nature. We are natural collectors, whether it be physical items or virtual assets. For example, the toys/models industry accounted for $3.45 billion worth of US retail sales in 2012, showing the significant market for collectibles. The longer we engage with collectibles, the stronger our emotional attachment becomes. This applies to virtual assets as well, with prolonged periods spent in-game correlating to greater emotional attachment, especially within the community. However, the lack of actual ownership has hindered the wider adoption of virtual assets.

Higher disposable income plays a crucial role in the adoption and spending on NFTs. The modern notion of collecting is closely tied to the emergence of disposable wealth. When individuals have more financial resources, they are more likely to invest in collectibles and entertainment. Based on past market trends and human psychology, it is reasonable to assume that most NFT spending occurs when there is higher disposable income.

Profit-making is another driving force behind the NFT market. Traders are buying NFTs upon issuance and reselling them at higher prices, creating a demand that outstrips supply. This trend attracts more users to buy NFTs, whether for profit-making purposes or personal use. The potential for eye-watering profits lures in NFT traders, contributing to the market's growth.

Increased market awareness is an essential factor in the growth of NFTs. Consumers are spending more time consuming content, doubling the average daily consumption from 3 hours 17 minutes to 6 hours 59 minutes. Despite this increase in content consumption, market awareness for NFTs has been relatively minimal. The challenge lies in bridging the gap between the online world and the physical world, where NFTs can cater to societal needs in the digital medium.

Now, let's shift our focus to an entirely different topic - how to effectively use what we read. Readwise introduces the concept of a reading workflow, which transforms reading into meaningful action and lasting insight. A reading workflow consists of three essential steps: Capture, Review, and Integrate.

The first step, Capture, involves noting down anything meaningful from your reading in a reliable system outside your mind. This could be highlighting key points, quotes, or ideas that stand out to you. The objective is to capture whatever resonates with you, as salience differs from reader to reader.

Once you've captured your highlights, the next step is to Review them. Reviewing is crucial to extract value from your reading. Readwise offers various ways to consistently review your highlights, such as through daily emails containing your best highlights. Regularly reviewing your captured information ensures that you don't forget what you've read and increases the likelihood of retaining valuable insights.

The final step in the reading workflow is to Integrate the knowledge you've gained. Integration can take various forms, from improved retention through spaced repetition to enhanced creativity resulting from the juxtaposition of unrelated ideas. By integrating what you've read into your daily life, you can make use of the valuable information you've captured.

In conclusion, the hype behind Non-Fungible Tokens (NFTs) stems from the desire for real ownership and emotional attachment. Humans are natural collectors, and NFTs provide a digital medium for collecting and investing. Higher disposable income, profit-making opportunities, and increased market awareness contribute to the growth of NFTs. When it comes to effectively using what we read, implementing a reading workflow can help us capture, review, and integrate the valuable insights we gain. By leveraging external systems like Readwise, we can make the most of our reading and transform it into actionable knowledge. So, start capturing, reviewing, and integrating your reading today to unlock its full potential.

Actionable advice:

• 1. Start implementing a reading workflow by capturing your highlights and key insights in a reliable system.

• 2. Regularly review your captured information to reinforce your learning and prevent forgetting valuable insights.

• 3. Integrate what you've read into your daily life by applying the knowledge, sharing it with others, or finding connections between different ideas.