People are spending millions of dollars buying digital arts that are available for free on the internet. But why are NFTs worth millions? This question deserves a satisfactory answer because it is still a mystery how digital arts are worth millions.
The world of crypto made waves after digital art was purchase for $69 million at Christie’s auction house.
To put things in perspective, with that kind of money, one can buy three luxury houses in New York. And still have some cash left to care for other needs.
But how an NFTs worth got to that rate is what the crypto world is still trying to crackdown.
Are NFTs worthy of the price it is selling at? Let’s find out in this article.
What are Non-Fungible Tokens And What Are NFTs Worth?
Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes that distinguish them from each other.
Unlike cryptocurrency, you cannot exchange NFTs at equivalence. They are unique and irreplaceable, as two NFTs can’t have the same value.
In a digital world of abundance where arts are easy to create, copy, and publicize. NFTs are creating an illusion of digital scarcity, which makes NFTs worth millions because of their value.
If NFTs Worth Millions do They Have the Potential to Change the World?
Considering NFTs as an evolution over the relatively simple concept of cryptocurrency by enabling digital representation could be hard to believe.
Nevertheless, NFTs are a step forward in the invention of digital arts.
The idea of digital representation of physical assets and the use of unique identification is what makes NFTs different from cryptocurrency.
Looking at how much NFTs have been selling, you can conclude that it is being overhyped. But with the kind of people investing in it, you might begin to wonder what is the cause of this rush.
NBA Top Shot made news headlines for selling digital basketball art and has already handled transactions worth over $250 billion.
There is no reason why NFTs worth millions. So buyers of these arts are the ones to explain why they feel the art is worth the amount they are bidding for it.
Just like humans will do anything for things they value or care about. It is possible, buyers of these arts felt something special about the arts they purchase.
With the assurance that NFTs are just one of their kind, owners of NFTs can show off their multi-million arts boldly because no other person has it.
Imagine going to a car manufacturing company. And on getting there, you reach an agreement with them to build a particular type of car no other person owns.
With this kind of demand, the customer will pay any amount since he will be the only one driving that kind of car.
This applies to NFTs because they cannot share values, so, therefore, NFTs worth should be as good as they have been within these few months.
Other Reasons Why NFTs Worth Millions
There has been a collectible craze in the past. But the different those and NFTs are from the onset, NFTs collectible perspective has been about making money.
Let’s look into some other reasons why this digital art representing physical artwork on a blockchain has become a money tree.
- NFTs are excellent tools for identity management. Consider the case of physical passports printing at every entry or exit.
But to encode individual passports, NFTs will omit the printing and reprinting of the passport.
- With NFT platforms, the artist connects with their audience and the need for intermediaries is no more.
- NFTs worth millions because some people see them as the way to revive fine art or as the future of fine art.
- So many people who bought NFTs for millions of dollars are now known globally. Meaning, some affluent personalities can use it as a way to trend and be in the news.
- Solves the issue of availability during business transactions, and also it is well secure and issues digital signatures to contents it manages.
NFTs worth can be on the higher side in the marketplace if it appeals minds of buyers. The creativity of digital art is among the factors that make them worth millions.