Wondering, why NFTs are so expensive and why people are so rapt to pay a huge amount for them? Well, it's been a long story and it started in 2014 when NFT first came into the headlines. Kevin McCoy was the first person to mint his NFT named “Quantum," on May 3rd, 2014 in $1.4 Million, way before the crypto art market came into notice. Even in the previous year, the data was surprisingly rocking. Around $40.9 billion worth of money was spent by people globally to own non-fungible tokens (NFTs).
Here comes the fact, the uniqueness of NFT makes it special and for only this reason people pay such a huge amount to procure them in their digital library. There are images, audio, and GIFs in NFT that we can also create and sell, but the authenticity of that art will still remain with the owner. Also, unlike other assets we carry and exchange with other tangible things, it is non-fungible. So, leave behind the idea to sell it partially to anyone.
Let's take an example of Picasso’s paintings. The cheapest Picasso painting was sold for around $120,000 which is quite a high amount and a middle-class person would severely be able to earn this much in a month. But there are people who have purchased this and the owner is still earning royalty for it. Also, it doesn't matter how many similar physical paintings we create and sell. It would barely be able to make the lumpsum of its digital creation. That's the distinctiveness of an NFT art.
The other famous example is the first tweet of Twitter’s founder Jack Dorsey that was sold for $2.9 million dollars. This tweet was purchased by Sina Estavi (CEO - Bridge Oracle). Now the point is, what he would do with this tweet, hilariously nothing but still, he wants to include it in his digital library out of interest.
So, with this, we can say that there is no reason to purchase NFT but most of us get into this because its value gradually increases with time can somewhere make us great profit.
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