Why do People buy NFTs?
NFTs are part of the trending use cases of blockchain technology. They are especially revered due to their ability to represent something unique and rare while also having the ability to represent multiple use cases. For collectors, the reason for collecting a digital work of art can vary from one person to another.
- Appreciating and supporting an artist ranks as one of the reasons people buy NFTs
- Buying digital art could also be a form of investment
- For some people, it is a way of staying trendy and in vogue with the latest developments
Supporting Digital Artists
It is possible that artists who are known to create thought-provoking digital artworks could build an online community around their works. Through an impressive narrative, an artist’s NFT could become appealing to collectors, who would then make the decision to purchase their works as a means of supporting their creativity.
Also, we are beginning to see a trend where NFT collections are created to support certain causes. Typical examples abound in the ongoing crisis in Ukraine, where NFTs have been created and sold to raise funds for the country. We have also seen collections created to tackle specific social issues such as eating disorders (as in the case of EyeSeeYou) and more.
Collectors could decide to purchase such artworks in the hope of supporting the humanitarian agenda that led to their development in the first place.
NFTs as Investments
The rapid rise in the value of generative art collections such as the Bored Ape Yacht NFT and the Crypto Punks has created awareness of how valuable NFTs could become when bought at an early stage.
Collectors are now on the lookout for the next possible breakout NFT collection that they can buy at a low price and make huge returns when the collection eventually becomes popular. Recently, we have seen the rise of collections such as Meebits and Pudgy Penguins.
This hope of making huge returns is what drives some collectors to buy NFTs.
For the Trend
For some collectors, the ability to have the bragging rights to owning an NFT is well enough reason to make them buy digital art. For example, BAYC collectors are seen as some of the highest-ranking collectors in the NFT space. The perk to this is that holders have exclusive access to events, shows, and merchandise that only BAYC holders can benefit from.
This is enough motivation for some collectors to invest in non-fungible tokens.
What is Your Reason?
There is no perfect explanation for why a collector should buy an NFT. Individual discretion and due diligence are the only things that logically explain why collectors choose certain NFTs over others.
If you are an NFT collector, you would have to clearly define your reason for holding an NFT or else you might end up collecting art will no intended purpose. The logic is simple — know why you choose an art over another.