20 Reasons Why People are Buying NFTs?
As is revealed in discussions on the same over at runrex.com, NFTs have generated a lot of hype as well as billions of dollars in the last few months, which have seen people spend over a billion in digital assets. So, what is driving people to get in on the NFT action, investing the huge amounts of money they are investing in NFTs? This article will outline 20 reasons why people are buying NFTs/
The pandemic
One of the things that have been attributed as a reason why people are buying NFTs is the COVID-19 pandemic. According to guttulus.com, the pandemic has led to people saving more, and with stimulus checks coming in, people ended up accumulating more money and savings, which they have used to invest in and buy NFTs.
Emotional value
The emotional value of collecting is also another reason why people are buying NFTs. The appeal of owning an authentic item created by an artist you like, and the bragging rights that come with it is a reason you can’t overlook as explained over at runrex.com.
Supporting artists
As the gurus over at guttulus.com point out, crypto art finally unlocks the problem of artists getting paid, as the creators can program these assets to pay them royalties each time the collectible is sold. The opportunity to support one’s favorite artist during these tough economic times is another reason why people are buying NFTs.
Speculative investments
NFTs have actually been around for years, but they have seen renewed interest in recent months. One of the reasons why this is the case is because people now see them as speculative investments since they can be bought and sold on online marketplaces, which is another reason why people are buying them.
Increase in reactional investing
Speaking of investments, the pandemic has also seen an increase in reactional investing, brought about by the economic uncertainty that has ensued as a result. This has seen more people willing to invest in new technologies like NFTs, which is why more and more people are buying them.
Cryptocurrency support
As is covered over at runrex.com, most exchanges involving NFTs accept cryptocurrencies. This meets the demand of individual investors that have stockpiles of cryptocurrency and are looking to spend it on something that may allow them to make more money later.
It’s fun
Another underrated reason why people are buying NFTs is because of how fun it is. The fact that NFTs are built on new and exciting technology, the blockchain technology as articulated over at guttulus.com, makes it fun and interesting to deal with.
The decline in popularity of traditional investments
While many people’s bank accounts have flourished because of stimulus checks and savings as already mentioned, traditional investments like stocks and bonds have become less attractive, which has opened the door for NFTs to thrive as an investment opportunity, which is another reason why people are buying them according to runrex.com.
People are willing to take more risks
As already mentioned, NFTs have actually been around for years, but with traditional investments becoming less attractive, people have been willing to take more risks and get creative when it comes to their investment portfolios, hence why more people are buying NFTs.
The impact of online communities
The impact on online communities, especially on Reddit and Discord, can also not be ignored. These communities have discussed NFTs intensively during the last couple of months, tickling the fancy of many and making them jump on the NFT hype train.
Tech tools
The growth of tech tools and the fact that they have gone mainstream and are now readily available to anyone is another reason why people are buying NFTs. Tools like the trading app Robinhood, among others discussed over at guttulus.com, has led to more people being willing to buy NFTs.
The ease of transactions
Unlike traditional investments like stocks and bonds, buying and investing in NFTs has been made easier by NFT marketplaces, which allow one to buy and trade different items with the click of a button as explained over at runrex.com, which has reduced the burden of entry into this industry and led to more people buying NFTs.
Nostalgia
Unlike traditional investments like stocks and bonds, nostalgia plays a huge role when it comes to investing in crypto art. Whether you are investing in a piece of digital art by your favorite artist or a popular NBA highlight, nostalgia is one of the reasons why people are buying NFTs according to guttulus.com.
FOMO
Fear of Missing Out (FOMO) is a real thing and has also contributed to people buying NFTs in their droves. NFTs have been on the lips of almost everyone in recent months, which has led to some fearing that they may miss out on this opportunity the same way many people missed out on the Bitcoin train, hence why people are more prepared to invest in NFTs.
Declining faith in the US dollar
The growing distrust in the US dollar has also been attributed as another reason why people are buying NFTs. This is because, as faith in the US dollar seems to be at an all-time low, brought about by the pandemic, NFTs have become another way for people to invest.
A way to store value
People have long used art to store value, as is revealed in discussions on the same over at runrex.com. Crypto extends easily into digital art-making NFTs a more modern approach to investing in art and using it like someone would use gold or Bitcoin.
The tech boom
While the pandemic has undoubtedly accelerated the NFT boom, the gurus over at guttulus.com point out that this was inevitable as a result of the tech boom that younger generations would eventually have driven anyway.
They trust the technology
NFTs operate on blockchain technology, which as explained over at runrex.com means that, just like Bitcoin, NFTs cannot be duplicated, can easily be authenticated, and are immutable. People trust the blockchain technology on which NFTs operate, hence why they are willing to buy and invest in them.
Scarcity
When it comes to NFTs, the buyer knows how many will be made and has blockchain proof of ownership. This scarcity and the fact that you can prove and authenticate the same is yet another reason why people are buying NFTs.
NFTs are available at nearly any budget
While high-grossing sales of celebrity work have been dominating headlines throughout the NFT boom, average retail collectors can snag an NFT in almost any price range. This is one of the reasons why people are buying them as there is no barrier to entry caused by prices.
These are just some of the reasons that have contributed to people buying NFTs, with more on this topic to be found over at runrex.com and guttulus.com.