Why People Spend a Lot of Money on NFTs?

NFT technology is still very young. It appeared just a few years before it thundered to the whole world. The first experiments with it began in 2013. In 2015, the first full-fledged NFT project was created, shown at the first Ethereum blockchain developer conference in London. Two years later, people began to actively learn about NFT.

The first work of art (that was turned into an NFT token) was the work of Banksy — the England artist. The Morons (White) stencil, which was created in 2006, was digitized. A performance was staged from this: the painting owners created its digital image — a non-fungible token, and the original itself was burned, broadcasting this process on social networks. Subsequently, the NFT token was purchased for $400,000.

Today, NFTs are sold on various platforms such as OpenSea or Known. The choice depends on what a person wants to buy. First, you need to register an electronic wallet used to pay on a specific platform and “load” it with cryptocurrency to make a deal. Then, to store a digital asset, you need to acquire an NFT wallet. They are available in different versions: desktop, web, and application on a smartphone. The best NFT wallets are NFT wallet Metamask, Enjin, Math Wallet, Trust Wallet, and AlphaWallet.

What Is the Practical Meaning of the NFT Purchase?

Since each NFT token is unique, the rarity properties of the object are transferred to the blockchain development services. Buying an NFT token means that a person receives an exclusive right to its content.

1. Resale. Perhaps it is the main reason for such acquisitions. Pricing in this area is largely speculative. At the same time, a significant number of NFT tokens cost mere pennies. Sometimes it is several hundred dollars. Acquisition of real digital art with the right of ownership is often more expensive.
2. Entertainment and collecting. Someone collects a virtual gallery, and someone supports crypto art. There are many NFT owners. After all, if you have money and a desire to spend it, who can stop you? In addition, buying an NFT is an excellent way to support your favorite artist, singer, or any other author.
3. Investment. This is the riskiest option. But it also has meaning. There is a good chance that NFT technology will not “die” in the future but will simply adjust itself normally. In this scenario, many non-fungible tokens will be a good investment.

Today, the high cost of NFTs is due to two factors. The first is uniqueness. People are willing to spend money to become the owner of a unique asset (which can be resold at a higher price). The second is speculation and hype on new technology.

Apparently, tokenization of game objects will soon become a new trend in the market. By adopting NFTs, global brands will be able to use the tokens in their marketing strategies. In addition, the technology could find applications in social media and game projects and the real world in the future. For example, if diplomas or other documents are tokenized, then they will not be able to be faked.

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