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Hello there! It’s Ivan, you know – “that NFT guy“. 😉
Before we start, for those of you who think that the NFT market is dead, it’s not. It is slow, but it is not dead.
You can’t flip a bored ape and make millions, I’ll give you that, BUT that is good! For example at the time of writing this article, the trading volume for the last 24 hours is $37.37M. Not dead!
So, let’s answer our question from the title, shall we?!
NFTs, or non-fungible tokens, have become a popular topic in the world, with many people wondering why they are so valuable. In order to fully understand why people buy NFTs, it’s important to first understand why people collect things and what gives art value.
One of the key factors that contribute to the value of NFT art is immutability.
Unlike traditional forms of art, NFTs cannot be destroyed after they’ve been purchased, giving collectors peace of mind that what they own cannot be taken away from them. This is a significant advantage over traditional forms of art, such as a painting or sculptures, which can be damaged or stolen.
NFTs also provide a way for artists to create an immutable record of the ownership of a work of art, something that is highly valued by collectors.
Another key factor that contributes to the value of NFTs is demand.
When it comes down to it, the thing that gives collectibles value is that there are communities of fans that want to own them. The more people want an item, the more the top bidder is willing to pay. This is why certain NFTs can sell for millions of dollars, even though they are just digital images.
The fact that people want them and are willing to pay a high price for them makes them valuable.
Rarity is also an essential factor in the value of NFTs.
The reason art by ancient masters is so valuable is that these types of antiquities are super rare. The same applies to NFTs. Some NFT collectors are interested in specific artists, while others hunt only for the oldest, rarest, and most sought-after NFTs.
NFTs that have historical significance are rare, and this makes them valuable.
Inherent value is another key factor that contributes to the value of NFTs.
Some NFTs are tied to something else with inherent value. This could be something intangible, such as a concert ticket, or something physical, such as a painting, sculpture, CD, physical collectibles, or other physical objects. NFTs have even been attached to houses.
The fact that an NFT is attached to something else that has value makes it more valuable to collectors.
Finally, utility is another key factor that contributes to the value of NFTs.
In addition to being a work of art, an NFT can serve a particular function. Some NFTs can be used in video games, while others can be used to access exclusive content or experiences. The fact that an NFT has a use beyond just being a work of art makes it more valuable to collectors.
In conclusion, NFTs are valuable to collectors for a variety of reasons.
Immutability, demand, rarity, inherent value, and utility all contribute to the value of NFTs.
With the NFT market becoming a multi-billion dollar industry, it’s clear that more and more people are becoming interested in buying and collecting these digital works of art.
It is easy to see why people collect antiquities, but why would anyone want to buy new collectibles? The simple answer is that they want to. That’s it. It’s that simple.
People buy brand-new collectibles every day, like sports cards, toys, commemorative items, stamps, and coins – you name it.
Now, they also buy NFTs.
With more people joining the community of NFT collectors and more artists creating digital works of art, the value of NFTs will likely continue to increase in the future.
In our next article, we will talk about the NFT markets. 😀
The article was written by: Ivan Markov, NFTartXpert