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Will you buy an NFT? Should anyone?

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In July 2021, OpenSea, one of the most popular NFT marketplaces in the world, was valued at $ 1.5 billion. In January 2022, that astonishing number increased to $ 13.3 billion. And despite the drop we have seen in the market, the demand for NFT is clearly higher. But while the appetite for the crypto industry has exploded in the past year and new buyers are entering the ecosystem at a relentless pace, the market is full of skepticism.

In many cases of NFT ownership, we are talking about digital files, above all. How is this kind of NFT ownership different than capturing a screenshot of an image? Does the fact that buyers are hungry for “proof of ownership” really mean something in the long run? With all this in mind, should you buy an NFT?

To help you decide, take a closer look at the main reasons why people own NFT.

1) NFTs empower artists

Artists have long suffered at the hands of publishers, producers and auction houses who take them into contracts that do not serve their interests. The primary problem is:

  1. Many contracts require manufacturers to give up their intellectual property (IP) rights. As a result, they have no say in how their work adapts or where and when it appears.
  2. Many artists only get a patent for their work, and they lose the profit that their work is later sold in the secondary market. As a result, the lion’s share of the assets go to the multinational corporations that they sign.

There is a possibility of introducing a more equitable model in the NFT, bypassing the gatekeepers currently controlling the creative industry. With the help of NFT, artists can mint their creations on the blockchain and sell their work independently. This allows them to retain IP and creative control. In addition, thanks to blockchain mechanisms, artists can earn royalties (which they can set themselves). All Secondary sales of their work. So when you buy an NFT in the secondary market too, you are usually endorsing the creator in the end.

NFTs also reduce access to many industries. They allow artists to avoid the hassle, financial investment and many intermediaries needed when distributing physical work.

Simply put, many people buy NFT because it is a way to empower and financially support their preferred manufacturers.

2) Collectibility

Our society has long accepted that rare baseball cards have value. A 1952 Mickey Mantle Rookie card sold for $ 5.2 million, despite costing less than 5 cents to make. Why? It’s not about physical cardstock. What it represents – history, rarity, cultural relevance and phantom. NFT, in many ways, is the digital version of it.

Like a rare baseball card or a piece of artwork, part of the demand for NFT comes from the uniqueness of a digital item. Since each NFT is different, the desire to own NFTs as collectibles significantly increases their appeal to something. For those who want to create a collection of digital assets, NFTs offer a unique opportunity that has never existed before in traditional collectibles and outside the industrial market.

As such, artists from different disciplines have tried to increase their NFT deficit to make them more attractive collectibles.

For example, many popular NFT generative avatar projects, such as the Board App Yacht Club (BAYC) or Azukir, have a specific supply of tokens. Each token has its own algorithmically generated rare feature. Thus, manufacturers have created a level of scarcity that helps increase collectibility, especially for NFTs with rare features. Other artists have used similar techniques – minting just one NFT of an album, for example – to dramatically increase financial interest.

3) Investment

Some are NFT owners Less Are interested in having an exclusive item to add to their collection and are More Interested in having an asset that will increase in value. In this regard, some collectors consider NFT as an investment – much like traditional industry.

In 2013, Jeff Kuns sold his sculpture Balloon Dog (Orange) ্টি 58 ​​million in Christie’s. Mike Winkelman, a well-known American digital artist professionally known as Bipal, sold it. Daily: First 5000 days Composite at Christie’s in March 2021 for $ 69 million.

Around the same time, a group of financial businessmen set fire to an প্র 95,000 Banksy painting in an attempt to increase the value of the artwork by selling it as an exclusive NFT.

Read more: 17 memes from your childhood that sold as NFT

The idea of ​​a lack of digital may seem counterintuitive to some. Everyone can view and interact with images or animated GIFs sold as NFT However, as mentioned, only one NFT can be owned. For many, that is enough.

Of course, the perceived value of an NFT can fluctuate based on popularity and market appetite, and as a result individual NFTs have been bought and sold for thousands or millions (or millions of millions!) Dollars. But market volatility makes NFT investments a high-risk, high-reward scenario, with large losses likely if the market turns around or the public interest declines.

One of the most exciting aspects of NFT ownership is the sense of community and friendship that comes with it. For many collectors, buying an NFT is not really about owning a unique digital file or making a quick profit. It’s a matter of identity.

Many manufacturers have turned their NFT projects into a vibrant community. And since blockchain lets people see who’s collecting their NFT, manufacturers are only able to create exclusive offers accessible to NFT owners.

The Board App Yacht Club is, perhaps, the best example of community building with an NFT project. Here is a small sample of what BAYC NFT owners get …

  • Access only against members
  • The right of commercial use in their NFT
  • Exclusive merchandise
  • Tickets for the virtual meetup
  • Exclusive live event access
  • Airdrops (meaning digital assets are delivered directly to their wallet for free)
  • A vote on ApeCoin allocation of funds, rules of governance, projects, partnerships and more.

So, would you buy an NFT?

Is NFT right for you? Or is it better to stay away? Truly, this is a difficult question to answer. In the end, it really depends on your personal preference and why you want to get involved in the first place. But there are some things that can help you make that decision.

  1. NFTs are great if you want to support a creator, be interested in owning a piece of something, or find community aspects compelling.
  2. As an investment? NFTs are volatile and risky. The market is speculative. You’re right with this, wonderful. But be careful, and don’t spend more than you can afford to lose.
  3. Despite the explosive popularity we have seen over the last few years, NFTs are still in their infancy and it is not too late to start. You certainly didn’t miss the boat.

If you decide to enter the NFT ecosystem, we hope you enjoy the ride – we know we must.



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