Another day, another NFT story. No? Do people really buy NFTs? The most common questions among individuals who have never invested in NFTs or are trying to take that leap but are not sure. If you want us to let the cat out of the bag – around 11 million art sales took place in 2021, making the market thrive further. So, yes! People buy NFTs. And, we understand your ambiguity, hence no further fluff lines. Jump in!
Anyone familiar with the famous 1990s Arcade video game knows how the microtransactions were in the headlines for its in-game purchases. Cut to 2022, almost all games have in-game/virtual goods as a business model that has even spawned a black market. Digitized goods, collectibles, and assets aren’t just for geeks and the elite anymore. They are lucrative investments, too. So, NFTs are here for a reason to sustain, and people are buying them. By people, we have categorized them into two streams – individuals and organizations.
Collectors, investors, flippers, fans of various artists, and people worldwide buy NFTs. No, not just Gary Vee or Mark Cuban, but the average working-class individual has bought NFTs, too. We have segregated those individuals by various parameters below –
Age – 18 – 34 years
Gender: Men tend to collect, buy, or invest in NFTs more than women.
Income – $25,000 to $150,000 annual salary.
Countries: Asian countries are the highest NFT buyers.
NFTs are sold to mainstream companies or blockchain-based organizations. Companies built on blockchains are known as DAOs -Decentralized Autonomous Organizations. The main purpose of some DAOs is to purchase NFTs, but others come together for a wide range of reasons.
DAOs collect funds, buy NFTs, fractionalize them, and distribute them to members. For instance, Head DAO allows its members to own top-notch NFTs fractionally. Not just that, PleasrDAO has acquired the only copy of the Wu-Tang Clan album “Once Upon A Time In Shaolin” for $4 million to make it more widely available.
A wide range of mainstream brands and companies show a propensity toward NFTs, whether NFT arts or general investments in NFTs. So, mainstream companies could be your target market if you are a brand or an NFT creator. NFTs are not only a good investment but can be attractive for various reasons aside from their potential monetary gains.
Thus, we arrive at the next question. 11 million art sales, huh? Not a diminutive figure to lose track with. But what is the cause of this inclination towards buying NFTs?
Answering your big why’s might help you navigate this journey further. Know why, right now!
You may find some unique items which provide utility and exclusivity to NFT holders (answering the WHY NFTs? ). Gary Vee’s VeeFriends NFT project is an excellent example of this exclusivity or uniqueness. It is an entertainment token. In VeeFriends, the NFT acts as an admission card or VIP access for his famous conferences. An NFT bought for entertainment usually has some value immediately, whereas a collectible or investment might take longer.
If we can go back in time, we can all remember the things we collected in a bag or box in our childhood days. From seashells to the favorite cartoon sticker tattoos, dried flowers to friendship bands, and more. Back then, the idea of the collection is to appreciate those things for the value they add to your life.
Now, in 2022, NFT collectibles are something that you can flip for monetary benefits. With such a scenario, how will you know if the collection is trustworthy? It’s great to collect on the blockchain! Every NFT’s historical data is revealed on the blockchain. Thus, making NFTs a transparent affair. Additionally, the transactions are decentralized and virtually instantaneous, with both parties signing and providing confirmation before any sales are executed.
NFTs are like owning a piece of a company when you purchase them from a brand. Some cool perks compensate for your investment and trust in the brand like – special invites, air and merch drops, discounts, limited editions, and more to enrich your digital portfolio. You also have the right to resell investments for a profit at multifarious marketplaces. Meanwhile, secondary sales will still generate income for the creators. You can reap all the benefits without compromising support by owning a small share of a brand. Ultimately, it is a win-win situation for both businesses and consumers.
There’s an entire emotion behind investing or purchasing NFTs, and rightfully so. To answer all those apprehensions away, NFTs come with community support. They engage, enrich, and make you truly a part of their journey. Oh, we are not overselling communities here if it seems that way!
Not just you getting support from the community, but they do their bit in this too. Several NFT brands donate a certain percentage of total sales to a charity of their choice, or they may give back a set percentage to the community.
Besides the percentage you receive as a community member, there is an incredible amount of support a community offers through various channels – such as discord, social media, and the metaverse. It is also possible to support your favorite community by purchasing assets from that brand. It helps continue to bring the best of their work and enable the industry evolve.
Digital assets are being traded daily by thousands of people, many of whom earn a full-time income from them. NFTs can be fun and risky at the same time. But, no risk? No rewards.
Making a nice profit with NFTs is possible in several ways. It is common to flip assets for a higher price after buying low. Long-term investments are another way.
The number of new brands and businesses with NFTs as a base are popping up like mushrooms, creating long-term investment opportunities. It also means you can earn a huge profit later on if the brand builds trust among the community.
Adequate research and enjoying the brand are essential factors when choosing an NFT.
Now you know who’s buying NFTs and why they are doing it. So, if you’re geared to sell your art and make some bloom, then check out the next section!
Everything is moving faster in this digital world, and targeting the right audience is often distracted. It’s not an exception in NFTs as an industry. But how to create the right group for your artwork? Hashtags!
Appropriate hashtags help in increasing your chance of being a part of a bigger NFT picture. You can also meet many prospects and co-artists in the same niche.
Tip – Adding relative hashtags in the profile description can notify the target group. It works for Instagram and Twitter as well.
Hello, there! Using the blockchain is not free; you’ll need gas fees to make changes or create items. It incentivizes miners to verify and propagate your changes across the network. Gas fees fluctuate with demand and supply.
Miners usually prefer the highest gas fees as they are associated with a large transaction amount. Don’t want to pay that? It is highly impossible to avoid that right now, but many plans are in the making.
Tip – Meanwhile, we suggest you read this insight on when gas fees can be at their lowest.
All fields benefit from social relationships and behavior. Business and marketing are especially in focus by this. You need social proof to succeed in an NFT marketplace and make your mark.
When people know who you are, your services will be more valuable to them. Publishing on NFT platforms isn’t usually sufficient.
Tip – To boost your rating, you need the right social proof on related social media platforms with your artwork, customer testimonials, or your recent sold pieces.
The NFT universe always benefits from collaboration. In both big and small leagues, collaborative efforts are on the rise. NFTs and artists are a match made in heaven.
For instance, Ether Cards collaborated with LaMelo, a basketball player, to create dynamic cards. These cards give access to various physical game items, discounts, features, and grant upgrades and reflect real-time changes.
Collectors are not those you think will invest in your art randomly. Although that happens in most cases, where buyers are directed to artists/sellers, in other scenarios, they are authentic. Know the history of collectors and the kind of art they are interested in. If you think you have found the right prospect, do send them a private message with your portfolio. Who knows? Luck favors in mysterious ways.
Finally, NFTs have just begun. It’s an emerging frontier within technology, and investing in the early stages of any endeavor involves risks. You got the who’s and why’s of buying NFTs. But that doesn’t need to be your right answer. Make a prudent move with your own research on why you want to invest your time and money in this field. But, in any case, if you want to take a leap of faith, learn that it’s not all green with NFTs. The venoms like washtrading, digital art forgery, and price manipulations are baggage that comes with it. Oh! And we have a piece of good news, and it is bitsCrunch! They have all antidotes available in their basket. Interested to know more? Reach out! Have curious questions about all things crypto, NFTs, and blockchain? We have some best answers in our blogs! Have a look!
Frequently Asked Questions
NFTs are Non-Fungible Tokens, and in layman terms, representing digital art or collection, video clips of best moments in the sports and entertainment field, gaming skins and collectibles, stored in a distributed ledger powered by blockchain technology. These are unique items and are not interchangeable with another NFT.
Generally, things are valuable when they are scarce. There is only one Mona Lisa. There are only 59 Le Bron James dunking NBA Top Shots (one of which sold for $US387,000).
The primary difference between the two is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique. representations of real-world assets. Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.
An NFT is a unique digital signature that you can attach to an asset. Whether that’s a song, or an image, or a piece of footage, a unique digital signature is like a fingerprint that contains information like who created the asset, when, and any conditions on its future sale (for example, whether or not the creator gets a percentage of when it is on-sold).
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network.
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network. It is designed to play a vital role in the functioning of the bitsCrunch ecosystem and is intended to be solely used as the primary utility token on the network.
We are a Cross-functional team with more than 25+ years of experience in Data Analytics & Artificial Intelligence and Blockchain. We already have all the NFT data since its inception. We blend our AI expertise with the Blockchain to bolster the NFT ecosystem.
We have built a model to identify the impersonation of artworks, thereby preventing the Provenance of the artist and the artwork. We are offering our services in a SaaS manner, wherein the customers can stake a certain amount of our native tokens to avail our services.
We haven't launched our BCUT Token yet, but we will send out a confirmation on the launch of the token on our official website and official Telegram channel.