What's so much special about having an NFT?
NFT is something original that exists in the digital world. It can be any form of digital data that ca not be replicated.
Having an NFT means that you have the original piece of data that was created. Think about a ball that was played by well known sportsperson. This ball has a great importance for the fans of the sportsperson so this ball will be sold on auction for very huge prices to the fans.
The one who purchases it will be given a the ball with the certificate to prove that this ball is the legitimate one that belonged to the sportsperson with other details.
That is something which happens in case of NFTs. Having an NFT is a similar experience. The fans here are collectors which sometimes are n a competition with one another that who will collect how many or who will have the best of them.
What drives so much attention to the NFTs was somewhat related to this competition. But why people now are crazy about NFTs is because it can be traded with crypto and it looks like they have promising fortunes.
So why most of the people are crazy is because they want to go with the trend and that is a reason we can say that NFTs are a sort of bubble.
But there is also another side of it!
Where some people just go for the trend there are others who really like the piece of artwork a creator has created and thus for rewards they pay high prices to the purchase them.
Plus there are some artworks which took a long for the creators to make hence if any creator thus wants to sell his work of years then he is not to be blamed for high cost of the art.
For example see this video, it took a long time for the 3D artists to render their works and they are really nice piece of artwork
Is NFT a bubble?
On a very large extent it is a bubble that arose due to the news about how costly some of the NFTs were sold.
It was something that caught attention of large masses mostly those who had been into the crypto things. The fact is that NFT is not something that everyone is interested in.
What everyone is interested in is following the masses that are trying their luck in these things.
In actual what drives the population towards these things is greed and the yearn to earn quick money or fame.
Why are some NFTs expensive?
This is due to the reason that these digital assets are traded in crypto so they have a fluctuating value which depends on the value of crypto in turn.
This can be understood by a clean example. Suppose a collector brought an NFT for 2 Ethereum coins in 2019 which had a value of about 150$ at that time and the collector now wants to sell it for same or more Ethereum coins or even a bit less then he will be selling the thing as per the value of about 2100$. That is what is hiking these prices.
Also some collectors do by
their free will wish to purchase an art for much great prices. Also some
data is so much special like the tweet of some celebrity that it
attracts much collectors which compete to buy the special thing. This
all makes NFTs so much expensive.
Some NFTs that were sold millions:
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