Every time we’re asked to define NFTs and the reasoning behind buying them, we feel the urge to tell the story over and over again. No complaints! If we were to lay it out simply for you, NFTs are a relatively new technology. They live on the blockchain and could be any digital asset, for example: Art, music, videos, images, documents and more. For instance, if you have a digital piece of art, it belongs to the internet and the computer. However, if you mint it as an NFT, you become the sole owner and no one can share it as their own.
Why Should I Buy an NFT?
1. Buy NFTs & Flex Them!
We’re not sure how common this term is outside these walls! However, NFT collectors love to flex their NFTs, or in simple terms: Brag about owning them! Many enthusiasts of the industry tend to buy NFTs for the sake of bragging about it. For example, many of the BAYC community buy an ape only to say that they own one. They showcase it on their social media platforms and as profile pictures. This feature is now supported on Twitter and Instagram. They even display them in their homes as physical artwork.
It can be crazy how much people love bragging about owning NFTs, but hey, who are we to judge? It’s technically just like an art collector loves possessing rare paintings. Moreover, physical paintings can also be minted as NFTs granted you have the approval of the original artist!
2. Empower Artists!
Artists have been underpaid and unfairly rewarded for their work for a long time now. They have been victimized by publishers, producers, and auction companies who pressure them into signing agreements that aren’t in their best interests. However, let’s just say that if you buy NFTs, you are aiding them.
By avoiding the intermediaries that currently govern the creative industries, NFTs have the ability to usher in more fair models. NFTs allow artists to autonomously mint their works on a blockchain and sell them. Thus, they can continue to exercise creative and intellectual control of their work. In addition, the blockchain’s mechanics enable artists to get royalties from all subsequent sales of their work at a rate they choose.
3. Invest For Profit!
This is the quite common reason people are tapping into NFTs. Some NFT owners are more concerned with owning an asset that is of high value rather than an exclusive item to add to their collection. In this regard, some collectors view NFTs as an investment and a means of generating respectable profits. Flipping NFTs is an example of this, which is when you buy or mint an NFT at a low price, then sell it when it becomes of more value.
Individual NFTs have been bought and sold for thousands, millions, or even tens of millions of dollars. This is due to the fact that the perceived worth of an NFT can vary significantly depending on market demand and popularity. However, because of market volatility, investing in NFTs carries a high risk/high reward potential. There is also the chance of suffering significant losses should the market reverse or if public interest declines. Here, it’s important to never take any financial advice from anyone and always do your own research!
Did We Answer Your Question?
Whether you should tap into NFTs or not is controversial. It all depends on how much you believe in the potential and authenticity of this technology. You need to ask yourself, why do you want to buy an NFT? Do I want to be a collector, do I want to brag about having NFTs, or do I want to make money?
We’ll tell you this. NFTs are valuable and important, despite them being in their very early stages. If you are to tap into NFTs now, you’d be riding the wave at the perfect time. However, you should keep in mind that this isn’t a walk in the park. It’s crucial that you learn about this industry, especially when it comes to trading and profiting, as well as marketing and community building. You must really get a grip of how the market works and hey, information is everywhere. For instance, you can go ahead and check ChainWitcher’s go-to hub. There, you can find absolutely everything about the industry, from A to Z.