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Why is NFT so valuable?

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NFT, Non-funglible token glitch background

NFT is not something foreign to your ears anymore, is it? Known as Non-Fungible Tokens, people often spend on them for pixelated jpegs for a load of cash. Does it make sense? Once you’ve finished reading, it might start making sense and you’ll wait for upcoming NFT projects 2022 news to drop. Apart from owning NFT, there is another reason why people are paying attention to them and that is because they are valuable. They aren’t valuable just because it is digital art, but because there are perceived value, exclusivity, timeliness, and scarcity attached to them. 

Perceived value

Perceived value is what society would think and place an item. Art is worth the amount the buyer is willing to pay for it. Just like art, there is the actual value to NFT arts but there are small compared to famous paintings. The minting of an NFT is only a small amount as well. Some perceived NFTs to have high value while some wouldn’t even bother to buy an NFT that’s worth $1 Million. However, someone would buy that NFT because, in their point of view, the NFT is valuable. 

Exclusivity

An NFT that you bought is yours alone and that can be proven with a special code engraved on the NFT. Just like how there is only one Mona Lisa in the Louvre Museum, there is only one of the NFT that you own. Many can copy the NFT art that you own, but only you have the original. It’s the same as collecting baseball cards as well. Additionally, you can sell it whenever you like. However, most people would invest in NFTs that they find value in, so you might want to hold on to your NFT. It might increase in value. 

Timeliness

Non Fungible Token News

Everyone wants to be a part of history. By being an NFT holder, you can be one of those people that everyone is talking about by being the first holder of a famous NFT. Famous NFT clubs such as Bored Ape Yacht Club have the potential to go big as well because it’s the trend in social media, and blogs. Even celebrities such as Snoop Dogg and Justin Bieber invested in the Bored Ape club too.

Scarcity

As mentioned, only one can own the original NFT. If there are too many of the same NFT everywhere, it wouldn’t be an interesting thing to own. The competition is what makes people interested in owning NFTs. Just like card collection, some cards are scarce to own so people compete to own them.