Why do people buy NFTs? 7 main reasons explained

1. Ownership and collectibility

Ownership is one of the most important motivators for purchasing nfts. People appreciate the feeling of having unique and authentic items in the digital world. nfts provide a digital certificate of authenticity that proves that the buyer has the original material. This approach is comparable to collecting tangible art, rare objects, or sports cards.

High-profile nfts, such as “The First 5000 Days” by Beeple”, have sold for more than $69 million, demonstrating the importance of exclusive ownership of digital assets. Furthermore, the NBA Top Shot nft Collectionwhich allows users to buy, sell and trade legally licensed NBA memorabilia, has surpassed $1 billion in sales.

2. Support creators and artists

nfts also allow artists to monetize their work directly. Unlike traditional models where middlemen like galleries or record labels take a significant cut, nfts allow creators to sell their work with royalties built in. This ensures that they continue to earn 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% and 10% in royalties. every time your nft changes hands.

3. Investment and speculation

Many buyers see nfts as an investment opportunity. nfts are known to appreciate in value, especially those linked to well-known creators or projects. Speculators buy nfts in the hopes of selling them later and making a profit.

For example, Bored Ape Yacht Club nft It originally sold for around $160, but later reached values ​​over $413,000, representing a huge return on investment (ROI).

4. Virtual worlds and games

nfts have taken the gaming industry by storm. Game assets, characters, and even virtual land can now be represented as nfts, allowing players to buy, sell, and trade assets across different platforms. This introduces real-world value into virtual worlds. Players can now own rare items that they can sell for profit or use to enhance their gaming experience.

The use of nfts in games like infinite axiewhere players earn tokens by fighting digital pets, has created new sources of income for many players around the world.

5. Access to Exclusive Experiences

Owning an nft can unlock 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, nfts-for-events-yellowheart-ceo-josh-katz-2021-4?IR=T” data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>Kings of Leon released an nft which provided headliners with unique audiovisual experiences and even front row seats at future concerts.

6. Philanthropy and social causes

nfts have also been used as a vehicle to support 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.

7. Community and belonging

In the nft market, many projects create strong communities where buyers feel a sense of belonging. These communities often hold events or meetings, such as “Bored Ape Yacht Club”ape festival”, which attracts 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 fluctuations in the market, people are still buying and trading nfts. However, overall demand has become more selective. The initial madness has calmed down and buyers are now more focused on quality and long-term value. Interest remains strong in specific areas such as digital artwork, gaming, and virtual real estate.

Based on our nft Research Report 202496% of nfts have become dormant. On average, an nft lasts 1.14 years, which is 2.5 times shorter than the lifespan of typical cryptocurrency projects. The year 2023 saw the highest number of nft failures, with nearly a third of them going dormant during that time.

However, as the technology evolves, nft use cases continue to expand, helping to maintain a level of interest in the market. While they may not be as explosive as before, nfts are still relevant. You can also consult our guide on best nfts to buy.

Conclusion

In short, people buy nfts for different reasons, including the ability to invest and a personal interest in digital collectibles. Although the initial enthusiasm around nfts has waned, many still find value in owning these special items.

nfts offer a combination of digital ownership, exclusivity, and new ideas that appeal to multiple buyers. Whether it's to make money, gain social status, or join digital communities, the hype around nfts is likely to continue in some form.

Frequently asked questions

Why would a rich person buy nft?

Wealthy people often buy nft projects for several reasons. They may see nfts as a new investment opportunityawaiting future appreciation. Some may also purchase nfts as a way of support artists or showcase your digital collectionsimilar to owning rare physical art. For others, nfts serve as status symbol in the digital world.

What do people use nfts for?

People use nfts for various purposes. Some buy them for collect unique digital art or virtual itemswhile others use nfts in games or virtual spaces. Additionally, nfts can provide access to events, communities or exclusive contentwhich makes them valuable for more than just ownership. Buyers also view nfts as investment opportunities, hoping that their value will increase over time.