NFTs have become a new tool for digital art buying and selling. Thanks to this technology, it is possible to sell everything from memes and digital art to physical objects and land in virtual space. Every day there are transactions all over the world, and the sums reach millions of dollars. This raises a perfectly logical question: why do people buy NFT? If you want to learn even more about NFTs – check out this ultimate guide to them by our CEO, Mykhailo Sitalo!
The digital economy is gaining steam and has now completed the transition from ordinary pictures to digital assets in which you can invest to start actively or passively income. Of course, the NFT could be that investment. That’s why today we’re going to take a closer look at why people buy NFTs. This material is more intended for NFT newcomers, but experienced crypto enthusiasts will also find useful information here.
The reason for the success of the NFT
Why are people buying NFTs? Cryptocurrencies are interchangeable, all coins are the same and do not differ in any way. NFTs are different from each other, they are unique, so they can represent unique things and confirm the ownership: artworks, digital images, personal items, the right to real estate, and others.
Unlike the standard model of such databases, there are no central nodes (all devices in the system simultaneously store all the data published in the blockchain). Many currencies operate on this principle. Tokens, in turn, are registered entries within this blockchain. The distinctive thing is the principle of interchangeability. However, it is clear that not all digital assets are non-fungible.
That is why the format of non-fungible tokens with blockchain technology was created in order to bring unique items here. Each of these tokens is unique and exists in a single instance, it cannot be separated, and all information about its author, buyer, and all operations with it is securely stored in the blockchain. In other words, an NFT is a digital certificate attached to a unique object which confirms the ownership. On this basis, it is clear that such tokens can be a good investment.
How many people are buying NFTs?
Crypto investors are constantly looking for new options to expand their portfolios and NFT fits perfectly here. Let’s review now the data analyzed for 2022:
- If we look at the statistics, about 360,000 people currently own such tokens.
- Each one sells approximately 12,000 NFTs.
- Also, it was found that on any given day about 10,000 active wallets and about 6,000 unique buyers interact with NFT.
This indicates that a significant number of purchases are made for more than one token per day.
What is the reason people are buying NFTs?
The answer to why people buy NFTs can be found in the technology that supports them. We’ve already talked about this above. Because NFTs are difficult to copy, they provide a degree of assurance of their value. When a person buys such a token, he or she is guaranteed sole holding. That’s why people want to make such a profitable investment.
NFTs are also used as in-game assets. This can be proof of uniqueness and ownership of any in-game item, avatar, or collectible. These tokens are also actively used in the fashion industry, as they can register ownership of physical goods. NFT can act as an electronic ticket to obtain a pass to a certain event. NFTs can take many forms, including virtual clothing fashions that people can use in the digital world.
In addition, many of the items invented and sold as NFTs are unusual in their own right. People spend extra for them because the best artists have minted their exclusive paintings only once as NFTs. Also, buying an NFT is a good way to support your favorite artist, creator, or any other author. Finally, in the future, this asset can go up in value and you can sell the NFT to another person for a profit. This is another explanation for why people buy NFTs.
So, why don’t people just right-click on the picture and save it to their desktop? It’s free, after all. Yes, it is, but as with other collectors, whether it’s baseball cards, rare books, or fine art, buying and having the original is special. This is why people buy NFTs. In the meantime, collectors and crypto-enthusiasts are making great investments.
Can anyone make an NFT?
The creation process is very simple, and it’s really accessible to everyone. Here we need to elaborate a bit more and describe the process:
- In order to create an NFT, you need to log in to an NFT market (token-selling platform) and upload a file. The process of creating such a token is called minting.
- When creating it, most NFT markets ask if the file that is uploaded is unique (one of a kind), if there are copies of it, and if it is part of any collection.
- Once you have completed the NFT creation process, bidding on the platform will begin.
This is why some people try to sell tweets and even colors. Digital artists can build royalties into their NFTs, even for future sales, which is why many artists see promise in NFTs: it can take middlemen out of the market and open up a new way to make money. So, artists, musicians, video makers, and bloggers from the NFT space can make money without intermediaries, receiving funds directly from the audience.
What do you get when you buy an NFT?
Normally an artist would have to go to a broker or dealer to sell their work, but selling an NFT collection allows for more direct interaction with art enthusiasts and better control over the handling of their creations. It’s also worth noting that NFTs are inextricably linked to collectibles, which have been a thriving market for generations.
NFT projects are a modern way of exchanging exclusive collectibles, whether artwork or in-game assets, in a multitude of ways. For a long time, the value of these items was questioned, and many people were perplexed as to why buy tokens as well as spent money on real paintings or ancient antiquities. Thus, we gave an answer to the question of why people buy NFTs. For the art lover or meme fan, these items are of great value and paying for them, whether directly or through NFT, is a wise investment.