The reason why NFTs are so expensive and how buyers find them valuable in the market today.
By Scott Foley
Art technology has become enormous force since 2020, the rise of the Non-fungible Tokens also known as NFTs have stolen the show on the market. These items are priceless pieces of creation are selling for hundreds, thousands and even millions of dollars. Buyers in the market are taking advantage of NFTs value and sellers/artist are cashing in on this opportunity to make profit from their work. So the big questions are..what is an NFT? why is it so valuable in our market that it is going for as much as seven figures? What is the technology behind these priceless pieces of imagination? and how is it secure?
NFTs are forms of artwork that are dubbed to be “non-fungible” meaning that the owner of the NFT has 100% ownership of that piece and the item is affirmed as the original document by author themselves. This is a very attractive aspect, making NFTs very priceless. Furthermore, what makes this type of artwork extremely glamorous to high price buyers, is the future value of resale, a trending item in their possession, and that the piece cannot be replicated.
So why are NFTs selling for top dollar? The answer is quite simple, it is the value of the artwork that buyers’ admire when purchasing NFTs. Buyers know that they could get the original piece of artwork and are willing to pay over $1,000,000 USD to possess it. Furthermore, the artworks’ value will go up not only in their possession but in future if the buyer chooses to resell for profit. Lastly, price value is so high due to the blockchain technology that NFTs reside. Buyers are attracted to the new technology blockchain and its safety measure that keeps their high price artwork safe from hackers and or any type of intrusion.
Blockchain? what is it? and how does it connect with NFTs? In a way that question has already been revealed. Blockchain is a technology where data is blocked in a series of chains that are extremely secure. How does NFTs play important role in all of this? NFTs inherently reside on blockchain technology and cannot be “replicated”. Due to its non copied nature NFTs become priceless in the market because when buyers purchase artwork, its the only one of its kind.
NFTs are hot! people want them not necessarily because of the artwork itself but because of how much the artwork is worth, non replicated nature on the blockchain, affirmed originality of the author, and the security it inherently possess when on blockchain technology. NFTs give artist a new outlet to sell their artwork for major profit. Buyers’ in the market have made a large investment in NFTs and it does seem to be slowing down anytime soon. In 2022 and moving forward look bright for NFTs and could be the new norm in artwork worldwide.
