Why are NFTs valuable?
Jun 05, 2022 - 2 min read
The answer to this question is twofold: because there’s a demand for them and because they’re scarce, As with most other commodities, NFTs are valuable because people want them and because there isn’t enough supply for everyone who wants them.
Collectibles Are Valuable.
Most people understand that collectibles are valuable. They can be worth more than their original purchase price because they are rare or in demand. The same is true for NFTs. They are often rare or in demand, and can be worth more than their original purchase price. Additionally, NFTs can be used to represent ownership of digital assets, like artwork or music. This makes them especially valuable to artists and musicians who want to sell their work online.
Nature of Humanity Purchasing Valuable Assets.
As humans, we have an innate desire to purchase assets. This is because these assets can provide us with a sense of security and safety. They can also give us a sense of status and power. In addition, assets can also be used as a form of investment. They can appreciate in value over time and can be sold for a profit in the future. An example of this would be purchasing stocks on the stock market. The individual stocks might not seem like much but their collective values adds up to quite a lot.
They Are Unique.
NFTs are unique because they can’t be replicated. This means that if you own an NFT, you’re the only one in the world who owns that specific item. This uniqueness makes them valuable because it means that there’s a limited supply of each NFT. And, as we all know, when something is in limited supply, its value goes up. So if someone likes your NFT and wants to purchase it from you, they’ll offer more money for it than what you originally paid for it. It’s like owning stock: If more people want the stock (NFT), then the price will go up. But this isn’t always the case: There are other factors that determine how much your NFT is worth. For example, if someone really wants to buy your digital card game skin but doesn’t have enough points to purchase it from you at current market rates, they might offer less money for your skin since there’s a chance they could find another player with less points who would sell their skin for cheaper (and then sell yours at a higher price).