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5 Reasons Why People Invest in NFTs

Josh King "JetSet" Madrid

Josh King "JetSet" Madrid


Despite reports that non-fungible tokens (NFTs) are possibly going on a downward trend, crypto enthusiasts and digital art collectors are still scrambling to get their hands on the most promising token communities emerging in the metaverse today. It only goes to show that despite the dive in purchases of new NFTs, the older ones are still being pursued relentlessly by passionate collectors. It begs the question of why investors continue to put a high premium on NFTs despite their imperfect nature. What keeps them going back for more? Why are they still relentless in their pursuit of newly introduced tokens in the metaverse?

People have varied reasons why they opt to invest in NFTs and not in traditional investment options that are considered more secure. Reports reveal that the NFT trading volume reached $10.7 billion in the past quarter of 2021, a year indication that NFTs are still going strong. It translates to a 704% increase from the previous quarter.

The main reason why people continue to invest in NFTs is their unwavering belief in technology. People see their long-term value and understand that, over time, with much patience, they will reap an overwhelming reward. The higher the rarity, the bigger the value of the token. There are characters, such as the ones CryptoPunks sell, that can go as high as six or seven figures.

The second reason is the potential of NFTs to make money. It is observable that a lot of successful NFTs today have grown in popularity over time. Those who are fortunate enough to get invited to a whitelist sale or buy the token on the minting day itself have a clear advantage in the long run. All they need to do is wait for the token to pick up and choose the right time to eventually sell their digital assets. Aside from the CryptoPunks, the CryptoKitties and Bored Apes owners are also making a killing in their resale value.

The third reason why investors put their money in NFTs is so that they can diversify their investment portfolio. Compared to traditional investment options, which may include stocks and bonds, an NFT is an interesting choice. It has the potential to boost anyone’s investment portfolio if the token community of choice has a solid roadmap.

The fourth reason is anyone can invest in NFTs. Anyone can easily mint an emerging token so long as they own crypto assets to pay for them. With NFTs, there is little gatekeeping compared to buying art in real life. Very often, auctions of artworks can be very competitive and grueling. NFTs offer anyone interested in digital art to build a solid collection they can treasure long-term.

The fifth reason why people are into NFTs is so they can access exclusive perks. Each token community has a distinct roadmap that creators develop during the planning stage. It also details the direction and future plans of the community, which is mostly the basis for potential holders in gauging whether or not the tokens are worth pursuing. Every token community has exclusive offerings, from parties to conferences, shows, and expansion perks, to mention a few. Some perks include first dibs on new projects before they are publicly announced.

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