Non-fungible tokens (NFTs) have received a lot of attention since the 2021 bull run. As unique digital assets, they are unlike any other form of cryptocurrency or digital item. But why do people buy NFTs?
In this guide, we’ll explore why they buy NFTs and the main reasons behind this trend, discuss whether people are still buying NFTs, and provide answers to frequently asked questions.
focus:
- NFTor non-fungible tokens, are unique digital items stored on the blockchain that prove ownership of items such as digital art, music, and collectibles, unlike regular cryptocurrencies that can be exchanged equally.
- People buy NFTs for ownership, support for creators, scarcity, investment potential, use in games, access to exclusive content, a sense of community, meme culture, and experimentation with new technologies.
- NFTs can be purchased on various platforms such as open seaBlur, Enchanted Eden, Ultra Rare and Rarean online marketplace for buying, selling and trading digital assets.
Why people buy NFTs: seven reasons
1. Ownership and Collectability
Ownership is one of the most important motivations for purchasing NFTs. People appreciate the feeling of owning unique and authentic objects in the digital world. NFT provides Digital Certificate of Authenticity Prove that the buyer owns the original materials. This approach is similar to collecting tangible art, rare items, or sports cards.
High-profile NFTs such as “The First 5000 Days” by Beeple”, has sold over $69 million, proving the importance of exclusive ownership of digital assets. Additionally, NBA Top Shot NFT SeriesAllows users to buy, sell and trade legally licensed NBA memorabilia, with sales exceeding $1 billion.
2. Support creators and artists
NFTs are also allowed Artists monetize their work directly. Unlike traditional models where intermediaries such as galleries or record labels charge large commissions, NFTs enable creators to sell their work with built-in royalties. This ensures they continue to generate revenue from secondary sales.
Emerging artists benefit greatly from this model because it allows them to retain control of their work. For example, Artists receive 5-10% royalties every time their NFT changes hands.
3. Investment and Speculation
Many buyers view NFTs as investment opportunities. NFTs are known to appreciate in value, especially those associated with well-known creators or projects. Speculators buy NFTs with the hope of selling them later for a profit.
For example, Bored Ape Yacht Club NFT It originally sold for about $160, but has since been valued at as much as $413,000, representing a huge return on investment (ROI).
4. Virtual worlds and games
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 brings real-world value into the virtual world. Gamers can now own rare items that they can sell for profit or use to enhance their gaming experience.
Use of NFTs in games, e.g. axis infinitePlayers earn tokens by fighting digital pets, creating a new source of income for many players around the world.
5. Get exclusive experiences
Owning an NFT unlocks exclusive access or privileges, making it more than just a digital asset. Many NFTs offer additional benefits, such as access to Special events, VIP treatment or early product launches.
For example, Kings of Leon releases NFT This provides the holder with a unique audio-visual experience and even front-row seats at future concerts.
6. Philanthropy and social causes
NFTs are also being used as tools to support charitable causes. Many creators and organizations specialize in minting NFTs to raise funds for various charitable causes.
In 2022, UNICEF launched a series of NFTs to fund initiatives in schools in developing countries, demonstrating how NFTs can transcend financial speculation and become tools for social good.
7. Community and belonging
In the NFT market, many projects have established strong communities to give buyers a sense of belonging. These communities often host events or parties, e.g. “Bored Ape Yacht Club”Ape Day“, Attracted hundreds of attendees. The community aspect makes NFT ownership feel more like part of an exclusive club.
Are people still buying NFTs?
Yes, despite some market volatility, people are still buying and trading NFTs. However, overall needs have become more discerning. The initial rush has cooled, with buyers now more focused on quality and long-term value. Interest in niche areas such as digital artwork, games and virtual real estate remains strong.
Based on our 2024 NFT Research Report96% of NFTs have become inactive. On average, NFTs have a lifespan of 1.14 years, which is 2.5 times shorter than the lifespan of a typical cryptocurrency project. 2023 was the year with the most failures for NFTs, with nearly a third of them becoming inactive during this period.
However, as the technology evolves, the use cases for NFTs continue to expand, which helps sustain market interest. While NFTs may not be as explosive as they once were, they are still relevant. You can also check out our guide The most worth buying NFT.
in conclusion
All in all, people buy NFTs for different reasons, including investment opportunities and personal interest in digital collectibles. Although initial enthusiasm for NFTs has waned, many people still find value in owning these special items.
NFTs offer a combination of digital ownership, exclusivity, and new ideas that attract a variety of buyers. Whether it’s to make money, gain social status, or join a digital community, the hype surrounding NFTs is likely to continue in some way.
FAQ
Why do rich people buy NFTs?
There are several reasons why wealthy people often purchase NFT items. They may view NFTs as a new investment opportunitieshoping for appreciation in the future. Some people may also purchase NFTs as a way Support artists or showcase their digital collectionssimilar to owning a rare physical piece of art. For others, NFTs can serve as status symbol In the digital world.
What are people using NFTs for?
People use NFTs for various purposes. Some people buy them for Collect unique digital art or virtual itemswhile others use NFTs game or virtual space. In addition, NFT can also provide Access exclusive events, communities or contentmaking them worth more than just ownership. Buyers also view NFTs as investment opportunities, hoping that their value will increase over time.
