Why NFTs are proving so popular

NFTs have been dominating the crypto market and popular culture for the past year.

The NFT space seems to be exploding with no sign of stopping any time soon – some of the earlier NFT collections are changing hands for millions of pounds and for newcomers to the market it can feel very daunting and difficult to understand.

If you are interested in investing in NFTs then it is important that you read a guide to buying NFTs and ensure that you know everything there is to know.

Any investment of this nature is one that you should take seriously; so reading up about it and doing some research is a must.

So, on that note what are NFTs and why are they so popular?

They Offer Something Really Unique

One of the main reasons why they’re so popular is explained by what an NFT is.

Non-fungible tokens are like a digital receipt that shows that you own a collectable item.

NFTs are one of a kind, they can’t be exchanged and they reflect ownership of totally unique items. This is where the popularity comes in.

NFTs have become a kind of digital status symbol. Traditionally wealthy people would buy gold or art to show that they had money to spend, but the digital world opens up new avenues.

Buying popular NFTs for thousands or potentially millions of pounds shows off your wealth while not taking up physical space.

Just like physical artwork, NFTs are potentially an investment. While you might have spent thousands on purchasing an NFT if the interest grows you might be able to sell it for a profit.

They Help People Support Digital Creators

Another reason that NFTs have become so popular is that it’s a way of supporting digital creators and small businesses that were previously quite limited.

Digital artists have always been excluded from the conversation when it comes to buying artwork.

When the piece of art you’ve created was done on a computer it’s physically impossible to sell an original, unless you were to delete the original file.

NFTs give digital artists a way around this – when you sell the file it’s like you’re selling a first edition print.

There is potentially only one or two of this exact piece of artwork on the market, and each time it’s sold it comes with a receipt to verify that you are the owner of this limited piece of artwork.

The digital revolution gives digital artists a way to sell their work in the same way that an artist using paints and canvas would sell theirs, making the art world a lot fairer.

Scarcity is a big indicator of value, so if a digital artist only sells a few of each piece of art they’re likely to command a much higher price tag.

They Support The Arts

Another reason that NFTs are so popular is that it allows anyone to express themselves.

NFTs are all about originality. There are hundreds of people copying popular NFTs in the hope of it being a get rich quick scheme, but this never works.

The reason that some NFTs command such a high price tag is that they’re totally unique – the artist’s style comes through and collectors are willing to pay a lot of money for this.

NFTs present a new way for the art world to work that allows everyone a seat at what used to be a very exclusive table.

Anything can be popular in the world of NFTs which is what makes it so popular and it is something that is likely to grow in popularity over coming years.