If you’re wondering why anyone would part ways with their hard-earned millions for a digital file that anyone can simply right-click and save to their downloads, you’re not the only one.
So why do people buy NFTs?
One answer is to support artists and photographers. This makes sense when we’re talking about buying an NFT associated with a photograph or a work of art. But what about NFTs for tweets, GIFs, or virtual super yachts in The Sandbox metaverse?
This is harder to explain, mainly because motivations will vary from one buyer to the next. The simplest interpretation is to think of NFTs as investments.
On this basis, a person invests in an NFT because they believe (or at least hope) that the token will increase in value. Are they correct? As with any investment – whether it’s in stocks, bonds, real estate, traditional art or something else – nothing is certain.
For now, NFTs are hot. Whether their stratospheric rise will continue indefinitely remains to be seen.
Of course, if you’re a photographer selling NFTs for your images, you are probably more interested in finding buyers than pondering their motivations!
So without further ado…