A lot of people see NFTs as just a bubble or trend that will come to an end in no time. But with the massive attention NFTs are receiving, and the number of industries that have adopted NFTs it is hard to just view NFTs as a trend or just cool-looking JPEGs.
In the past year, NFT sales have reached $25 Billion dollars. Yes $25 Billion dollars.
It makes me laugh whenever I say it out loud because a lot of people just see them as JPEGs of cool-looking art or monkey characters.
But if the sale of what they see as only JPEGs is already $25 Billion dollars with only maybe 2 or 3 years of public acceptance won't be interesting to know why these JPEGs are worth so much.
My exposure and fascination with NFTs started in 2021.
First, it was this dude called Beeple who sold his NFT art for $69 million dollars.
Then came crypto punks getting sold for hundreds of thousands of dollars. This made me interested in knowing why these funny-looking crypto punks are worth that much.
A lot of people have said NFTs are a way of laundering money without it being traced because NFTs are built on a blockchain. I won't say anything about this.
But there are a lot of things behind those JPEGs you see, it isn't just monkeys and bears. Something worth taking note of is, NFTs don't only come in the form of JPEGs.
NFTs are digital assets, this means NFTs can come in any form provided it is digital. Some NFTs are virtual lands, sneakers, tickets, and a lot more. So JPEGs are only just one form of NFTs.
When I started looking into NFTs, the first factor I found out that influences an individual when buying an NFT is how drawn that person is to that art.
The connection between that person and the art matters a lot. The NFT doesn't have to be really cool or artistically detailed. If the art makes you feel a certain way then there's a chance you'll drop hundreds or even thousands of dollars for it.
People also invest in some of these NFTs because of what that NFTs say about them. I know these NFTs are just digital art but the things you own say a lot about you.
For instance, the car you drive, the phone and other tech gadgets you use, your fashion style, and even the setup of your room says a lot about you. Some NFTs also give out a projection of who you are and that's why some people are willing a huge amount of money on certain NFTs.
Some NFT projects also give the holders of their NFTs special Utilities like exclusive access to special events, club membership, access to merch, and a lot more. Some NFT projects like that are the Bored Ape Yacht Club, Vee Friends, and others.
Having access to some of these cool kinds of stuff also makes some NFT holders spend a lot on them.
In-game assets now also come as NFTs. Gamers now have the chance of getting their hands on cool and rare in-game assets as NFTs.
Owning a very rare in-game asset as NFTs means there'll be a lot of gamers who will also want that in exchange for a good amount of money.
Tickets are also now made in form of NFTs. Having an NFT ticket to your favorite band or musician's concert means you a special piece of that concert as a digital asset that can be exchanged in the future for some money.
Coachella also plans on giving life access to the Coachella festival to holders of their NFTs for their projects
My Final Thoughts
A lot of things influence the value of NFTs and it starts with what the buyers think or feel to what that NFT has to offer to the owner.
NFTs are cutting across several industries like real estate, music, fashion, sport, art, gaming, and a lot more. So I believe NFTs are going to be here for quite some time and are going to get integrated into several industries and institutions.
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