Why Are People Buying NFTs? Should You Get in on It?
Why do people buy NFTs? That is a question a lot of people are asking since there are no doubts that previous NFT sales for projects like Bored Ape Yacht Club have really gone through the roof. But for something that may not have real-world value, should you spend millions of dollars on digital assets? Let’s decide.
What Makes NFTs So Special?
NFTs do bring a layer of value, which is proof of ownership. Digital ownership of assets is the next step. Yes, some people buy NFTs as a flex, but they overlook the true potential that NFTs can have, which is utility. Then there is where the value’s at, which is the blockchain technology.
Because ownership and NFTs are written on a blockchain, they cannot be replicated, copied and secures ownership.
Why Are People Purchasing Non-Fungible Tokens?
Let’s take a look at why some people are willing to shell out their hard-earned money for certain NFT projects.
We mentioned utility, and there are NFT purchases out there than have proceeds going to help charity and the environment. There are others on the NFT market that can give holders exclusive access to certain events. If other NFT holders of the same collection are celebrities, then we can see why getting access to events where they could be in attendance is so appealing.
Flip for Profit
We’ve seen some digital art go for much more than physical assets (BAYC), so it goes without saying that some people buy NFTs to flip for money. Much like physical items like trading cards, some NFTs may have the potential to flip for 2, 3 or more times the money. The best way to make sure you are buying low and selling high is to get in on the initial drop.
For Rights and Ownership
If the non-fungible token is popular, ownership may grant you the rights to use the image for commercial purposes to create more money and sell merch for a profit. These digital images are yours to use and are directly written into the blockchain/smart contract, so copyright is indisputable.
To Have and Collect
The odd art collector or NFT supporter could just want the NFTs to keep. There are plenty of real-life artists that have tokenized their creations into digital versions. If you appreciate an artist’s work, you can purchase their art on the NFT market as an investment. Not to mention, buying these pieces is a way to show support for the artist.
Speaking of investment, if you hold a blue chip NFT, then it can work a lot like blue chip stocks, which are considered a safe investment. However, it’s important to remember that nothing, especially investments, is a sure thing.
Gaming and Utility
NFTs are popular in gaming as many in-game assets have been tokenized. Many games have their own dedicated NFT marketplace where you can purchase, sell, trade or buy. These tokens can be used to boost your player profile.
NFTs are considered a new thing, so there are collectors out there that buy NFTs for the sake of novelty. We know we have a few pieces in our possession, like Chainchillaz, for example, that we bought online for a keepsake.
NFT Audience Today
What is the mindset of the NFT audience today? It’s no secret that NFTs are in a current bear market, but will they become bullish again? No one can tell the future, but we do believe that there is a lot of potential by just looking at the utility and technology alone.
A survey revealed that 1 in 3 American adults are invested in NFTs. Non-fungible tokens are more prevalent than you think. It seems that many people are still holding out hopes for a fierce NFT return.
• Where can I buy NFTs?
You can buy NFTs on dedicated platforms or on the secondary market. You can find out where your favorite NFTs are selling by engaging in the community or simply conducting a quick google search. Just make sure you have the cryptocurrency needed!
People buy NFTs for a myriad of reasons. Some do it in the hopes that it will give them a high return, others do it to support their favorite artists or to create a collection. What would be a good enough reason for you to buy NFTs? There is no debate that NFTs and even crypto are down right now, but gear up for the potential of a bullish return!