Why do people want to buy NFTs?
Why do we even want to buy the ownership of arts?
The same question can be asked for why do you buy luxury branded bags?
Why do we value the check mark on social media?
Why do we choose what cloth to wear?
Why do we pay a little extra money for stamps and aviators for apps and games?
Why is it possible for people to make money selling products on amazon and ebay…?
People care about branded goods and check on social media for status and expressing their identity.
People choose what to wear or even goods they use when it comes to stamps and aviators to communicate who they are to their friends and people around them.
People sell products online for a profit because there is an arbitrage opportunity between one market to another.
Depending on where you are looking at what we have already mentioned, NFTs are exactly the same thing.
The reason I called NFTs as social currencies is they are tools for communication for some people. Owning “cool arts” that they like and resonate with is one way for people to express what they like and who they are.
Others also buy these arts in the means to support the artists which also means that by supporting the artist, the person who bought this art is still communicating who and what idea they are standing for which is one way to express who they are!
We are all social animals and we like to communicate with others and NFTs are coming into the play to add digital and future dynamics into the communication.
Finally, NFTs also hold interesting financial dynamics.
Like the MonaLisa example, arts appreciate their value for their uniqueness and NFT arts are in no exception.
The concept of buy low and sell high in these arts exist strongly and what is interesting about this is that as we talked earlier all NFTs are one of a kind and there are no other products out there that have the exact same value, so you can not trade. This means that the price of the arts are decided by the demands and how much buyers are willing to pay. What is good in arts are so subjective hence this is very interesting.