Why does NFT art have value? Why are NFTs so expensive?
The first is the “market-driven value”, which depends on the speculated resale value and popularity of the artist. The second is the “subjective value”. It involves the moral statement or political message that is conveyed by the art — how it makes you feel.
Another value determinant of NFT arts is the “objective value”. This involves the experience and technical skill by which it was created. Lastly is the “historical value” the piece of digital art has.
What are NFTs used for?
NFTs can be used to indicate ownership of rare assets which represents real-world items like real estate and artwork.
It’s important to note however that purchasing an NFT that includes the copyright of the original artwork does not mean its copyright is automatically transferred to you. While you can sell the NFT itself, you are prohibited from reproducing or selling its content.
Are NFTs a good investment? What is the risk of NFTs?
Yes there are good investments however as an investor you would need to look at what the nft creator is offering. The graphic quality needs to be of exceptional quality relevant to the particular niche. There should be a long term plan from the creator an additional value can be derived from any value it will bring to communities.
Before you attempt to invest in NFTs, invest in knowing what you’re getting into. You need incredible knowledge in the crypto currency industry if you’re ever going to have a chance of success.
How to make money with NFTs?
While you can also create NFTs by minting them, the additional cost of creation such as royalties, account setup fees, site fees (marketplace listing price) , and gas fees are factors to consider when calculating profits.
Whether you choose to buy and sell later or set out to create NFTs, you must first realize how the NFT world works and what would and wouldn’t sell or risk losing money. You can also consult a professional for help.
Where do you buy NFTs?
You must know that NFTs can only be bought with cryptocurrency (mostly with ether or ETH). However, some exchange platforms like Gemini, Kraken, and Coinbase allows user to convert U.S dollars to ether.
Some of the best marketplaces where you can buy NFTs include OpenSea, Rarible, Axie Marketplace, and NBA Top Shot Marketplace.
Can NFTs be copied?
No, and Yes. While the technology “NFT” cannot be replicated because of security factors inherited from blockchain, the media can be copied easily.
Take, for example, the Mona Lisa painting done by Leonardo da Vinci, while there are many lookalikes and iterations of the original painting, there is no two original Mona Lisa artwork. The same goes for NFT, it’s impossible to fake the creator’s wallet even though copying the contents of an NFT can be done.
NFTs contain unique codes — stored on the blockchain in an immutable form — that makes it possible to trace them back to the creator. Read our detailed article here on where NFTs are stored.
Will NFTs last?
The questions as to the durability of NFTs have generated mixed opinions due to the many uncertainties as regards its use case.
Experts believe that projects based on strong fundamentals are likely to survive the test of time, however, that can be said about weaker ones.
Projects that are most likely to lose the fizz are NFT collections that lack utilities.
Can I make money in NFTs as much as Crypto coins?
A lot of crypto traders ask if they can make money in NFTs as much as they can in crypto or the prospects of making money faster either with coins or NFTs. We should know that making money in crypto requires patience. Some investors also wonder if they can just open an NFT marketplace and right-click or save an NFT.
Anyone can do this, however, it can’t be sold. The real money you get from having an NFT is when you sell it. When OpenDao gave out free $SOS tokens to active users of Opensea, a lot of people did not qualify for the airdrop because though they bought NFTs in OpenSea, they did not sell. The selling was where the real activity was pegged to.
You do not need to possess a special skill to buy or sell an NFT. Musicians, Artists, Social media influencers, and videographers can create NFT. All you need to show is that you legally have the right to the ownership of the NFT, anyone can Mint NFT too.
What is the future of NFTs?
OpenSea co-founder Alex Atallah said in an email that “the possibilities of NFTs are endless since they can be used to log ownership of any unique asset.” Using NFTs as event tickets, software licenses, fan club memberships, or other interactive experiences is already a common use case for NFTs.
Nike and other well-known American companies are already experimenting with new ways to use NFTs. However, the use of NFTs in consumer products could be just the beginning. Isn’t it possible to prove your identity using an NFT?
A shift from artist-driven NFTs to NFTs that focus on access or authorization has been observed, At a recent New York party, attendees gained entry by purchasing an NFT. When it comes to digital identity, I am curious to see how NFTs will be utilized.”
There is a lot of potential for NFTs in the $85 billion video game industry. They’re already being tried out by some of the bigger studios. The metaverse, a virtual 3D world proposed by Meta (formerly Facebook) CEO Mark Zuckerberg and other tech industry heavyweights, could make use of NFTs as building blocks for a future digital universe.
According to Atallah, “gamers are already used to caring about digital goods, so the potential for NFTs is enormous: A few million NFT users compared to almost 3 billion gamers.” Some exciting developments are taking place when it comes to bringing together NFTs, gaming, and the metaverse
The beauty of NFTs is that in anything you do, whether it is dancing, drawing, writing, singing, you can convert it to a digital asset in form of NFT, and its value will be evaluated in the market. This is an opportunity to make money without working anywhere, all you need to do is just have the skill.
NFTs are interesting and speculative, but for now, they do not have a strong use case in the asset class. NFTs are not entirely without use cases but personally, Investing in collectibles like baseball cards is a safer way to invest. If you must invest in NFTs, do this with a small amount of money and ones with sentimental values attached to it, or you can buy high worth NFts like Lazylions or BoredApes but at your own risk.
Credit to justcreatie.com