You’re probably familiar with the jpeg right click save argument and it seems like a good one to begin with but once you dig deeper into the world of NFT’s and the blockchain things become more complex than that. So the next time someone asks you why NFT’s are valuable, read on and give them this answer!
Like most status symbols, people don’t purchase them out of necessity but more to demonstrate who they are, what they value and communicate their position in life and the world to others. When someone purchases an NFT it can be for similar reasons, there is also an investment element and in some cases a desire to be part of a community they admire.
NFT value lies in the following:
Exclusive access to events or experiences as a holder of a specific NFT (eg BAYC). This is called utility.
Investment opportunities and the ability to “flip” an NFT by selling it for more than you bought it for.
Bragging rights: Like traditional art, being able to say you own a valuable piece of art and then being able to show it off in the digital realm / metaverse is pretty sweet.
All of the above of course is verified on the blockchain, so the right click save argument does a rapid death right here.
”NFTs have value because of the media attached to them –– the most common forms of media on NFTs today are art and music, but NFTs have the potential to tokenize any real world asset.
Prior to NFTs, digital ownership relied on central servers of companies, which can be manipulated. After the incident at Travis Scott’s concert, for example, Fortnite deleted users’ Travis Scott skins, leaving them with nothing. The only way to truly own a digital item is through ownership on a public blockchain; NFTs aren’t controlled by a central entity, allowing for true ownership of these assets.”
In March, Christie’s Auction house set a record for the highest selling non-fungible token (NFT) to date, a transaction worth more than $69 million in Ethereum. This 1/1 piece dubbed The First 5000 Days by Beeple is just one of many NFTs selling at unprecedented amounts. Artists like Beeple are using NFTs to release digital artwork that can be verified authentic through the blockchain.