Over the last few years, non-fungible tokens have seen a dramatic increase in popularity in the market due to the general excitement surrounding blockchain technology and cryptocurrency. However, to newcomers and outsiders who aren’t quite familiar with NFTs and crypto, the hype surrounding NFTs can leave them wondering, “Why? What’s the point of dropping money on these expensive digital pictures?” The answers to these questions aren’t necessarily black and white. People who follow NFTs and the market surrounding them can tell you a whole host of reasons for their interest in them, so join us in discussing why one might take an interest in non-fungible tokens. Some of them might surprise you!
Digital Art Collections, a Collector’s Dream
One of the more popular, although basic, reasons that NFT aficionados have a vested interest in purchasing NFTs is to start a personal digital art collection. This may seem like a trivial reason to pour money into the NFT market, but, like any collector’s item, it can be sold or traded down the road if they ever lose interest in their collections. Additionally, the rise of the Metaverse gives collectors even more opportunities to display their digital art galleries. To take things a step further, NFT creators and collectors made a bold move earlier this year with the E.D.C. Las Vegas 2022 NFT Art Gallery, which served as a more mainstream (and pricey) form of NFT / digital art collection.
Supporting your favorite artists
One of the major selling points of NFT art on the virtual markets is the appeal of putting the power back in the hands of the creator. Rather than relying on unnecessary middlemen to handle transactions, creators are able to own the process from beginning to end. Because of the blockchain, artists can turn a profit more effectively, giving buyers and collectors the ability to directly support their favorite artists and creators on the NFT market. In addition to directly supporting the artist by buying directly from them, artists also stand to gain a potential cut of the profit from resells, depending on the platform used to buy and sell their works.
Utilities, Perks, and Exclusivity
While NFTs are most commonly recognized for their value as a collector’s item, NFTs can also give buyers exclusive access to events, services, and other utilities that come with NFT ownership. Take, for example, the Creator Passport NFT, which provides holders with various opportunities, including more earnings from brand collaborations, exclusive access to industry experts and speakers, and other perks. Creators and brands have also gotten creative with utility NFTs by linking NFTs with access to other products and services such as video games, access to community spaces, discounts for future purchases, and other highly sought-after perks.
Potential Profits and Trading Security
Blockchain technology has increased the value of NFTs tenfold. Blockchains can record and verify ownership of an individual NFT, similar to the processes used for cryptocurrency. The security behind it is a massive motivator for trading and reselling in the NFT community. By creating, selling, or trading NFTs on the market, creators and buyers alike can stand to gain a significant profit from their endeavors. While the actual value of each unique NFT varies depending on the state of the online market, each minted NFT has an inherent value. If NFT traders can use the market to their advantage, they can turn a relatively easy profit.
Preparing for the Metaverse
The Metaverse can be difficult for some to understand, given that it isn’t mainstream as of 2022, but that hasn’t stopped the eager people of the internet from preparing for its big boom. For context: NFTs are expected to play a pretty sizable role in the grand scheme of the Metaverse by acting as its basic building blocks. The NFTs expected to be used in the Metaverse vary significantly from the NFTs that we are familiar with today. They will become innovative virtual models representing objects that may have practical uses for holders and will have worth in the real-world economy. Given that the Metaverse isn’t a part of most of our lives yet, it can be difficult to paint an exact picture of the role that NFTs will play, but we can most definitely expect to see more of them when it comes to be.
The list of reasons for getting involved in the NFT market goes on and on, but at the end of the day, each and every person a part of the NFT market has their own motivations for doing so, ranging from “I just think they’re neat!” to making preparations for the next phase of the online world. To find more on NFTs and Web3.0 in general, you can read more here.