I don’t see any value in NFTs, so why do people buy them? What exactly makes NFTs so popular?

Awesome questions! There are many reasons to invest in NFTs. In this article, we’ll dive into what many of those reasons might be and hopefully you see some of the value in this new and exciting space just beginning to emerge!

One of the main reasons people are so keen to buy an NFT and join NFT projects is because they offer exclusivity. They’re a chance at true digital ownership within a set amount of assets. Translation: people want to be a part of something (a group, an idea, a utility, etc.) and they want to own it. Most everything on the internet isn’t claimable. You might think you own all those pictures you post on any number of social media, but the fine print most likely says otherwise. This is what makes NFTs (and the blockchains they reside on) so unique. When you own an NFT it is written, and verified, into the Blockchain code that you are the singular owner, regardless of whether someone right clicks it or not, and since no one else’s wallet address is exactly like any other, when something is purchased and cemented into blockchain transaction history it is set there and no one can take it from you, unless you are the victim of a phishing scam! (An article on that is in the works for a future New Content Monday drop. When it is ready you can click the link [HERE])

Most NFT projects work within 999-10,000 pieces of digital art in each collection, so with over 7.7 billion people on the planet, having 1/10,000 makes them pretty exclusive. Not that every person on the planet wants the same NFTs, or even any NFTs for that matter, but owning a Bored Ape Yacht Club, each currently valued at about 95 ETH or approximately $172,000 USD, wouldn’t sound too bad to anybody I would guess!

Which brings us to our next two points and those are brand recognition and status symbols. People all over the world recognize a multitude of brands and will pay top dollar for those items or experiences. Whether it’s a trip to Disney, or LV bag, most everyone will recognize those brands and want to be a part of them in some capacity; just like NFTs. Big brand name NFTs have that same allure and status aligned with owning one of them. An example of which is a giant in the Solana ecosystem named DeGods. Their collection is currently the “it” SOL project with a FP of 399 Solana, or about $15,960 USD, and while this is significantly less than their Ethereum counterparts, USD-wise, DeGods has a massive following and owning one brings a lot of clout with it. They even recently bought a Big3 League basketball team with their “DeDAO” funds, which will no doubt expand their brand recognition even further than before, while simultaneously elevating their top tier NFT status.

Outside of all the hoopla that is presently surrounding the NFT craze there are still many other reasons to buy an NFT even if you don’t care about status or flexin’ what you have in your bag. (Noobs, read: showing off the flashy NFTs in your wallet.) One of the best reasons right now to buy an NFT is the same as before when they were just pieces to put up on your wall, and that is the art. While you can still print and post up your favorite NFT pieces to display for mom and dad when they come to visit, really appreciating and digging the art of many of the NFTs out there is paramount to understanding why some people get into NFTs. I personally own several NFTs that I don’t care how much they’re worth or how popular they are, they are simply art pieces that I enjoy owning, like trading cards, except with NFTs each is unique and that brings me joy as I know it does for many other NFT owners.

Community is another huge reason that people buy NFTs. When you attach yourself to an NFT project and join their Discord, Twitter follow everyone that follows you back, and participate in their community games, raffles, whitelist opportunities, raids, etc, you become part of something larger than just having bought a JPEG. Not only is there a sense of pride that comes with being a part of a larger group there is a connectivity that happens when people from all over the world participate in cultivating something together and watching it grow. Now, this doesn’t always happen, some projects wither and die, others straight up rug pull (like Frosties), but the majority of NFT projects that continuously engage with their community, despite their lower than hoped for FP, still provide a fun and healthy outlet for many of those involved.

As I’ve posted and footnoted on all my pages I am not a financial advisor, nor I am I giving financial advice anywhere on this website, but there is yet still another big reason why many, many, many people buy NFTs and that is that they believe NFTs will make them rich. Let me be clear though, believing and hoping are two very different things. I’ve been in the NFT “game” for 3/4 of a year at this point and I have yet to make my fortune with NFTs and while I’m hopeful that someday I’ll whitelist on the next project that moons, like many of the “blue chip” NFTs out there, I also don’t believe I should bet the farm on that happening and neither should you. It will take a tremendous amount of luck to become rich off of a single NFT, I’m just not going to bank on it. In my opinion, NFTs are a fun way to invest in digital assets, and while I’m also fond of saying NFTs can be thought of like stocks, most stocks aren’t going to fail like NFT projects will, so, my suggestion (though 1000% NFA) is that you buy an NFT because you like it. Simple as that. Sure, you can try and make some money with them like Noob2NFTs explains in our previous post How To Make Money With NFTs, but none of those methods are guaranteed to make you rich (and they most certainly are Not Financial Advice).

I mentioned trading cards above and I think the similarities can be expanded upon a bit more to explain why I believe you should buy an NFT. When I was a kid, I collected all kinds of cards, sports cards like basketball and baseball, fantasy/comic cards like Marvel and DC, game cards like Magic The Gathering and, hell, I even geeked out on POGs if you can remember those (though not technically cards), my point is is that I collected them because I enjoyed them, I enjoyed trading them with my friends, I loved the thrill of opening a new pack and hoping to score some rare and obscure card that would make me the envy of everyone who knew I had it or that it might be worth a small fortune. I believe that NFTs have tapped into that same zeitgeist and while I might be a bit nostalgic for such things, I think there’s some truth to it. There’s definitely a similar thrill when minting an NFT and the collection has yet to reveal. You sit, waiting impatiently, updating the metadata, standing by as your NFT comes to life, hoping, praying, not only that you scored a 1/1, but that your project will be the next big thing in Web3!