Struggling to understand why Eminem bought a cartoon monkey for $462,000? or why the kids won’t stop talking about them. I understand it is hard to wrap your head around. After all, they are just some worthless JPGEG images, right? Perhaps. But based on my years of experience in the industry I see it differently. In this article we will be looking at 3 reasons why NFTs are valuable:
What is an NFT?
Put simply it is proof of ownership. It is a record on the blockchain which cannot be falsified or duplicated. Now without further ado let’s dive right in.
Status symbol
Whether it’s a Basquiat painting or a Rolex Daytona. Humans have always been drawn to status. A status symbol must be rare and display value to their peers. The nature of NFTs facilitates this scarcity. They cannot be faked or duplicated as the blockchain documents digital authenticity. Imagine you use an NFT as proof of ownership to a prestigious event or you buy the rarest avatar from the next hot 10k collection. Vanity has never been easier.
Community
From the early days of dancing around campfires, we have always craved community. Now they will be tokenized. Access will be determined by whether or not you have the NFT and tokens will be used to reward members. This arrangement between the individual and community has never been seen in history.
Digital Identity
What do crypto punks, bored apes, and doodles all have in common? They are projections of our own identity or what we aspire to be. We can have a tailored suit or a fancy watch. These avatars are an expression of ourselves. As more and more of our lives transition into the metaverse, do people really want to be their boring old selves or something else?
Why should you care
Three words, markets of scale. In 2021 the total art market saw $61 billion in sales, while NFTs saw only $11 billion. So with that in mind, in this increasingly digital world what should you really be paying attention to?
If you want to hear the other side of the story, please read Why NFTs are Dead.
