With the growth in popularity surrounding non-fungible tokens (NFTs), the question has arisen whether it is really worth investing tens of thousands or even millions of dollars on something that everyone can get for free on the internet.
The underlying technology of NFTs makes them into a sort of commodity from which their users may derive monetary gain.
In fact, according to the findings of a new survey published and conducted on June 10 by DEXterlab, 64.3% of the 1,318 people polled said that the primary reason they purchase NFTs is ‘to make money.’
As per the poll, the second most prevalent reason why consumers purchase NFTs is to join a community and flex. For 14.7% of survey respondents, this is the primary reason for acquiring certain NFTs.
Digital art collectors make up 12.4% of all poll participants, while 8.6% of individuals purchase NFTs for the purpose of gaining access to games and tools, typically in the form of membership rights that provide you access to artists’ projects, perks, everything and tools to everything else.
NFTs as an investment
Tokens that are not fungible, as their name indicates, are not capable of being traded per se in the same manner as cryptocurrencies. Interest and demand are both driven by the unique qualities and varying degrees of scarcity that each has; naturally, these factors also have an effect on the value of the items.
For this, NFTs can be seen as an investment that may later produce rewards if you have a good understanding of the value of a particular digital asset and make sound selections about your purchases.
Although the main reason why individuals purchase NFTs is to make money, the majority of NFT holders who participated in the survey claimed that their NFTs haven’t been too lucrative so far with 58.3% of respondents.
However, 41.7% of respondents said that they were able to generate a profit from the NFTs that they had previously purchased.
It’s true that many people still don’t understand the value of non-fungible tokens and think there’s no need to invest in them, but the demand is there with global NFT trading volume growing over 200% in 2022 surpassing $50 billion.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.