Why do people collect NFT?
The non-fungible token market is one of the most striking emergences within the blockchain world. Millions of people around the world turned to this sector that remains solid despite the winter in the cryptocurrency market.
It should be noted that there is no particular reason to motivate people to acquire these collectibles. In that sense, it can be said that there are numerous justifications for entering this market.
4 Reasons Why People Collect NFTs
Listing the inclinations that motivate people to collect NFTs (or anything else) is a complex task. However, there are trends that can be used to group people who are attracted to a particular market. In the case of non-fungible tokens, these are the 4 main reasons:
1.- Support and empower artists
Since it became a business stolen by the most archaic monopolies, artistic creation lost part of its inspiration. Consequently, artists have long been subjugated by publishers, producers, and auction companies. All these forced them to sign contracts often contrary to the interests of the creators of works and other content.
These tokens mark the beginning of a more equitable model since they bypass the commercial sewers that control the art industry. Artists now have the ability to develop their own creations and sell them independently. The great advantage is that they retain their intellectual property and creative control. Investments to enter the market are eliminated and middlemen are avoided.
2.- Collecting rare pieces
This is where social conventions come in. People accept that a collectible album card from the 1978 Argentina World Cup has value; people’s subjectivity adds values that could even be worth millions of dollars depending on the rarity.
With this, it is patented that it is not about the card, but about what it represents: cultural relevance, rarity, history, and other attachments. Non-fungible tokens largely represent all of this but in a digital version. Thus, cards, artwork, and NFTs appeal to people because of the originality of some creations.
The fact that these tokens are unique is a reason for many people to accumulate them as a collection. This is a great opportunity to access digital assets that in the future will arouse admiration since they will be the first NFTs minted in this era and will be seen as relics.
3.- Investment and profit
There are the motivations of traders to profit from these tokens. Like collectors, some people stockpile these pieces. The difference is that they do so with the motive of waiting for them to appreciate in value so that they can sell them at a profit on their investment.
Thus, investment and profit are among the motives that drive people who collect NFTs. Currently, the trade of these pieces is in its early stages, which makes it a highly volatile market. Hence, it can be considered a high-risk/reward investment.
4.- Being part of a community
Although undervalued by outsiders, the sense of community is one of the strongest in this universe. Many holders are encouraged to become one in order to be part of clubs and feel surrounded by fellowship and exclusivity.
In other words, it’s not about economic, historical, or cultural value, but rather they create identity for many buyers. As a result, a considerable number of creators orientate their NFTs toward collections that generate community. Thanks to blockchain features, creators make exclusive environments for the holders of their collections. As this market develops and acquires new features; it will also generate new attractions for people.
By Audy Castañeda
