Non-fungible tokens (NFTs) have gained significant attention since the 2021 bull market. As unique digital assets, they are unlike any other forms of cryptocurrency or digital items. But why do people buy NFTs?
In this guide, we will explore why they buy NFTs and the main reasons behind this trend, discuss whether people are still buying NFTs, and provide answers to common questions.
Ownership is one of the most important motivators for purchasing NFTs. People appreciate the sense of having unique and authentic items in the digital world. NFTs provide a digital certificate of authenticity that proves the buyer has the original material. This approach is comparable to collecting tangible art, rare items, or sports cards.
High-profile NFTs, such as Beeple’s “The First 5000 Days”, have sold for over $69 million, demonstrating the importance of exclusive ownership of digital assets. Also, the NBA Top Shot NFT collection, which allows users to purchase, sell, and trade legally licensed NBA memorabilia, has surpassed $1 billion in sales.
NFTs also allow artists to monetize their work directly. Unlike traditional models where intermediaries such as galleries or record labels take a significant cut, NFTs enable creators to sell their work with built-in royalties. This ensures they continue earning from secondary sales.
Emerging artists benefit significantly from this model, as it allows them to retain control of their work. For example, artists can receive between 5-10% in royalties every time their NFT changes hands.
Many buyers view NFTs as an investment opportunity. NFTs have been known to appreciate in value, especially those tied to well-known creators or projects. Speculators purchase NFTs with the hope of selling them later at a profit.
NFTs have taken the gaming industry by storm. In-game assets, characters, and even virtual land can now be represented as NFTs, allowing gamers to buy, sell, and trade assets across different platforms. This introduces real-world value into virtual worlds. Gamers can now own rare items that they can sell for profit or use to enhance their gaming experience.
Owning an NFT can unlock exclusive access or privileges, making it more than just a digital asset. Many NFTs offer additional perks, such as access to special events, VIP treatment, or early product releases.
NFTs have also been used as a vehicle for supporting charitable causes. Many creators and organizations have minted NFTs specifically to raise funds for various philanthropic efforts.
In 2022, UNICEF launched a collection of NFTs to fund initiatives for schools in developing countries, showing how NFTs can go beyond financial speculation and serve as tools for social good.
Despite some fluctuations in the market, people are still purchasing and trading NFTs. However, the overall demand has become more selective. The initial craze has cooled down, and buyers now focus more on quality and long-term value. Interest remains strong in niche areas such as digital artwork, gaming, and virtual real estate.
To sum up, people buy NFTs for different reasons, including the chance to invest and a personal interest in digital collectibles. Although the initial excitement around NFTs has decreased, many still find value in owning these special items.
Wealthy individuals often buy NFT projects for several reasons. They may view NFTs as a new investment opportunity, hoping for future appreciation. Some may also purchase NFTs as a way to support artists or showcase their digital collection, similar to owning rare physical art. For others, NFTs serve as a status symbol in the digital world.
People use NFTs for various purposes. Some buy them to collect unique digital art or virtual items, while others use NFTs in gaming or virtual spaces. Additionally, NFTs can provide access to exclusive events, communities, or content, making them valuable for more than just ownership. Buyers also view NFTs as investment opportunities, hoping their value will increase over time.
