The universe of NFTs or non-fungible tokens took the creative world by storm in early 2021, with million-dollar sales of digital creations to anonymous buyers.
Independent artists and other creatives were shocked by the surge of this new and emerging market that allows for the encryption or tokenization of art to sell.
As time has passed, the NFT market has only grown and become increasingly more popular among celebrities and artists who have added to its credibility. If you’re still on the fence about creating and selling NFT art, then here are some of the top reasons why people buy them.
What are NFTs?
NFTs are non-fungible tokens, or cryptographic assets that usually run on the Ethereum blockchain. However, there are other blockchains that can and do issue their own NFTs. Each token has a unique identifier and metadata that sets it apart from the others.
The term ‘non-fungible’ should have some special attention paid to it when talking about NFTs. Typically, all units of either cryptocurrency or fiat currency will have the same value. However, non-fungible goods are unique – for example, if you have a dog, you couldn’t replace it like-for-like with another one. This situation applies to NFTs – one token is not equivalent to another, so it’s not possible to do a like-for-like exchange.
How Much Are NFTs?
If you want to use an NFT trading marketplace, then you might be wondering how much they cost. According to research conducted by NonFungible.com, 2020 saw the NFT market triple, and the total value of transactions has increased year on year, exceeding $250m.
What are Crypto Assets?
A crypto asset can be either a digital or physical product. Most often, people will tokenize digital collectibles, works of digital art, domain names, tickets, and game items. Along with this, the creator of a digital object is able to issue several NFTs on it. Each is considered original and will have a unique identifier.
Why People Buy NFTs
Why do people pay millions of dollars for digital art and memes? You may be wondering why people pay huge sums of money to own things like images, tweets, memes, and photos when you could simply download them to your device. NFTs don’t always have a physical embodiment, so why spend so much on them?
The truth is that there are several reasons why people decide to buy NFTs. Often, it’s simply because they want to participate in the establishment of a new cultural paradigm.
NFT is democratizing the digital art market, giving way to innovators and experimenters. Along with this, it is an opportunity to invest in an asset that is becoming increasingly popular.
Due to the scarcity aspect, NFTs are attractive assets. People get to buy a piece of the internet that belongs only to them, along with the ability to support a certain creative community. And anybody can become a collector with the help of NFT, allowing buyers to build their own personal digital galleries.
If you are a digital artist, then it’s worth getting into the world of NFTs. Despite not being physical art that you can hang in the home, NFTs are hugely popular and selling for millions.
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