Why Are People Paying A Huge Amount to Buy NFT Art?
Have you heard of individuals paying millions or even tens of millions for NFT art?
If you’ve been following cryptocurrency news for any time in 2021, you’re likely to have. It’s hard to see why somebody would spend millions of dollars for what amounts to a JPEG.
No one who spent that much for an NFT art is accessible to talk, but we have a fair understanding of why someone would pay that much for an NFTs. Several factors contribute to this. This blog will present some of the explanations.
Paying Millions for NFTs?
NFTs indeed fetch astronomical sums of money. The floor price for the most expensive NFT art collection, CryptoPunks, is $314,000. CryptoPunks have brought as much as $7.8 million in NFT in sales.
NFT collections other than CryptoPunks also have such a high floor price. The floor price for the Bored Ape Yacht Club NFT collection is 51 ETH ($220,000). Bored Ape NFTs sold for a maximum cost of $2.3 million.
Also recently, an NFT collection by artist Beeple (Mike Winkelmann) sold to Christie’s auction house for $69 million. Beeple is one of the best-known NFT artists at this time. In addition, he has the title of the most valuable living artist.
NFT has a wide range of applications, and these are only a few. The Ethereum and Solana blockchains are complete with NFTs that is almost as valuable as this.
Individuals do indeed spend a lot of money to get NFTs. You can check this truth by looking at the blockchain — no one disputes it.
Why are NFT art so expensive?
People’s motivations for spending much money on NFT art vary widely based on their circumstances. The reasons stated below should cover most reasons why people buy NFT art.
People acquainted with traditional art will observe that the reasons people pay so much for NFT art are similar to why people spend so much for conventional artwork.
There is a simple reason why NFT art is so expensive, and it’s the most typical.
NFT art has projected to grow in value. In a way, this is a self-referential cycle. An NFT’s worth rises if someone pays $100,000 for it. The value of other NFTs in the collection likewise rises due to this.
Any NFT artwork may employ this basic concept.
Additionally, NFTs are a part of the blockchain’s history. Owning a CryptoPunk is like owning a piece of Ethereum history, as it was one of the earliest NFT collections.
Although it may not seem like much now, investors believe Ethereum can revolutionize the global economy.’
Those NFTs may be worth a lot of money in the future.
If hyper-realistic virtual reality finds its way to the blockchain, these digital pictures might seem even more genuine.
Finally, some individuals overpay for NFTs because they believe their prices will rise in the future. This is not always the case because people pay a lot of money for traditional artwork.
Amazing profile pic
Another benefit of NFTs over traditional artwork is that they may use them to create visually appealing profile images. Discord, Telegram, and Twitter are frequent hangouts for cryptocurrency influencers sporting CryptoPunk or Bored Ape avatars.
As a symbol to the community, the owner employs many employees. In the digital world, you might compare it to owning a Lamborghini or a Ferrari. In contrast, folks who have valuable NFT profile images might opt to remain anonymous.
Cryptocurrency enthusiasts are increasingly choosing to remain anonymous and low-key in the real world while boosting their egos by publicly parading their precious NFTs online. Because they’re not getting as much attention, they’re considerably safer this way.
CryptoPunk’s Twitter profile image may be an anonymous user that drives a Honda Civic or has a regular job!
Use of Metaverse
Meta (previously known as Facebook) has gone all-in on the metaverse with a hiring drive in Europe and a brand change. Many individuals believe that the metaverse involves an immersive 3D experience in the virtual world where people interact, hang out, attend events, and play games with one another, despite the lack of a consensus on what exactly constitutes the “metaverse.”
In the metaverse, several NFT projects are already developing 3D avatars for their owners. Using our 2D avatars on Twitter and Discord, we can utilize our 3D ones in virtual environments like Decentraland, Sandbox, and CryptoVoxels to identify ourselves.
The cryptocurrency sector has been very successful at creating wealth for its participants. One hundred thousand crypto millionaires and 10,000 crypto decamillionaires (worth more than $10 million) are estimated to exist.
Those figures are low for our taste, but that’s not relevant. The crucial thing to remember is that these crypto billionaires likely went from doing a regular job to being millions in a matter of days or weeks. Mostly, they are guys with geeky backgrounds in technology, according to our estimates.
Generally, billionaires in the IT industry don’t want to show off their money. Those in the IT industry who can afford designer clothing or high-end automobiles are mocked for doing so. Consider the careers of somebody like Mark Zuckerberg or Bill Gates.
In any case, NFTs provide a platform for these individuals to demonstrate to the rest of their sector just how far they’ve come.
Because some individuals have so much money, they’ve effectively invented a new method to flaunt their riches by acquiring particular NFTs.
That explains why so many individuals are willing to shell out large sums of money for NFT artwork. In the end, it’s all about getting a good deal and being able to talk about it.
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Originally published at https://www.nftically.com on June 28, 2022.