Should You Buy NFTs?

NFTs are gaining extreme popularity among investors all over the world. But whether you should buy or not, totally depends on your personal preferences and why you want to be involved.

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One of the largest NFT marketplaces in the world, Open Sea, was worth $1.5 billion in July 2021, and the amount accumulated by January 2022 was staggering. Despite the market drops, there is still a high demand for NFTs.

Before finding out How and Where to Buy NFT, let us first find out why people want to invest in NFTs. In other words, you too might consider buying NFTs in light of the following reasons.

1. Helping artists with NFTs

Historically, artists have been victimized by publishers, producers, and auction houses that force them into contracts they don’t want to be in. There are three main problems:

Creators are often required to surrender their IP as part of their contracts, and they don’t have any control over how their work is displayed or adapted.

In many cases, artists don’t get paid much for their work, and they miss out on profits when their work gets sold on secondary markets, meaning multinational corporations make the most money.

NFTs could usher in more equitable creative industries by bypassing gatekeepers. NFTs let artists mint their creations on a blockchain and sell them independently. By doing this, they keep creative control and IP rights. Thanks to blockchain mechanisms, artists can also earn royalties from secondary sales of their work. So buying an NFT on a secondary market generally supports its creator.

NFTs also lower the entry barriers in many industries by eliminating the hassle, investment, and middlemen when distributing physical works.

NFTs are popular because people want to empower and support their favorite creators.

2. Collectibility

Our society has long accepted the value of rare baseball cards. A Mickey Mantle rookie card from 1952 sold for $5.2 million despite costing less than 5 cents. Why? The cardstock doesn’t matter. There’s history, rarity, cultural relevance, and fandom behind it. In many ways, digital NFTs are just like this.

NFTs are in demand because they’re unique, just like rare baseball cards. The desire to own an NFT as a collectible makes them more appealing to some people. Individuals who want to build a collection of digital assets have never had this opportunity outside of traditional collectibles and art markets.

Therefore, artists have increased the scarcity of their NFTs to make them more collectible.

3. The investment

NFT owners are more interested in having an asset that will increase in value than having an exclusive item to add to their collection. As an investment, some collectors view NFTs similarly to traditional art.

The sculpture Balloon Dog (Orange) by Jeff Koons sold for $58 million at Christie’s in 2013. In March of 2021, Beeple, a prominent American digital artist, sold his every day: The First 5000 Days composite at Christie’s for $69 million.

Meanwhile, financial traders torched a $95,000 Banksy painting to sell it as an exclusive NFT, attempting to increase its value.

Some may find the concept of digital scarcity counterintuitive. Anyone can view and interact with the image or animated GIF sold as an NFT, and NFTs can only be owned by one person, which is enough for many people.

Individual NFTs have been bought and sold for thousands (tens of millions!) of dollars, depending on popularity and market appetite. If the market turns or public interest wanes, NFT investment becomes a high-risk, high-reward scenario with the potential for major losses.

4. The community

One of the best parts of owning an NFT is the sense of community and camaraderie. For most collectors, buying an NFT is about something other than owning a unique file or making a quick buck. It’s all about identity.

Many creators have become part of NFT projects. Since blockchain lets people see who collects their NFTs, creators can make exclusive offerings only NFT holders can get.

Bored Ape Yacht Club is the best example of community building from NFT. Here’s just a small sample of what BAYC NFT owners get.

You’ll have access to a discord server only available to members

Their NFTs are commercially available

• Exclusive products
• Tickets for virtual meetups
• Live events you can’t miss
• Airdrops (i.e., free distribution of digital assets)

Final words – Should you buy an NFT?

NFTs are gaining extreme popularity among investors all over the world. But whether you should buy or not, totally depends on your personal preferences and why you want to be involved.

Article paid for by: Ascend Agency – ascendagency.com
The news and editorial staff of the Bay Area News Group had no role in this post’s preparation.