According to venture capitalist Bill Tai, company shares and property investment will be one of the many items that will be converted into non-fungible currencies in the future.
On Wednesday, the tech entrepreneur told CNBC’s Arjun Kharpal that “it’s going to happen” and that it’s “not even a question.”
Tai stated at the Crypto Finance Conference in St. Moritz, Switzerland, that it is merely a matter as to when it will occur at scale.
NFTs are “one-of-a-kind” digital currencies that may be bought and traded over the internet. They’re intended to demonstrate possession of a one-of-a-kind virtual property, such as online photographs and videos or even sports collectibles. It’s unclear why someone would want to hold an NFT of a stock or what they’d be able to accomplish with it right now.
The number of things converted into NFTs has increased dramatically in recent years. NFTs have indeed been sold for everything from source code of the internet to Jack Dorsey’s first tweet.
However, some individuals are perplexed as to why these intangible assets are being sold for such a high price. In March, South Carolina-based graphic designer Beeple, the actual name Mike Winkelmann, sold an NFT at Christie’s for a record $69 million. An NFT of the web’s code was purchased for $5.4 million in June.
According to data released Tuesday by industry tracker DappRadar, global NFT sales will reach $25 billion in 2021 as the speculative crypto asset grows in popularity. NFTs have been sold by some of the world’s most well-known firms, such as Coca-Cola and Gucci.
While some are apprehensive about an NFT bubble, Tai, who has funded in start-ups such as Zoom and Scribd, believes that as the internet transitions from Web 2.0 to Web 3.0, even more items will be transformed into NFTs.
“Web 1.0 was read-only,” he explained. “Web 2.0 is read-write.” Web 3.0 is the instantiation of a wrapper around everything coming in and out of that screen so that it can move around. So it’s an internet of assets .”
“You can put property titles, real estate, paintings, drawings, everything on there,” he explained, adding that anything may have a location that allows others to discover it through a marketplace. “It’s the most efficient way over time to assign ownership of really any asset.”
Tai, like many other NFT supporters, is interested in cryptocurrency. He called the recent crypto crash, in which bitcoin’s value briefly fell below $40,000 on Monday, “yet another wobble,” but he believes it will recover.
“I don’t know when it’s going to go back up, but it’s going to go back up,” he stated, noting that cryptocurrencies are at the crossroads of institutional adoption.