You might have heard some stories about how some NFTs are worth millions of dollars. But why are these NFTs so expensive? We talked with entrepreneur Ryan Hoggan to learn about why these NFTs cost so much.
First, what dictates the values of these NFTs?
NFT values are determined by what people are willing to pay for them. People can produce whatever values they want for each NFT. Nothing else is going to influence these NFT values. Think of these NFTs as if they were stocks or other things that people might support.
NFT values have been growing a little faster as of late. What is behind this point?
NFTs are growing in value because it’s easier for people to buy them. You can find various marketplaces for NFTs in the Zed Run or Bored Apes collections, among many others you will find on the market.
You only need to go online to find a place where you can buy NFTs for sale. The demand for NFTs will continue to grow as they become more accessible, and their values will also rise in the process.
But you will need access to a cryptocurrency to acquire these NFTs, as you must spend a cryptocurrency on these tokens. It’s easier than ever to acquire cryptocurrencies, as you can download a wallet and purchase currency online.
Don’t forget about those cryptocurrency ATMs.
Yes, you can buy Ethereum from those.
Does the scarcity of some NFTs make them more valuable?
Many NFT collections are prepared with a limited number of NFTs. CryptoPunks is a good example, as only 10,000 NFTs were minted in that collection. The scarcity of these NFTs can make them valuable, as some NFTs might become more interesting or unique to people. The desire for some to acquire these NFTs and use them soon is also noteworthy.
— Ryan Hoggan (@RyanDeanHoggan) July 22, 2021
Are any major organizations making these NFTs more valuable?
Christie’s Auction House has been selling NFTs as of late, with some selling for millions of dollars. Christie’s has added a sense of legitimacy to the NFT market, making it to where these are more valuable than ever before.
More people are going online during the global pandemic. Could this be a factor for why so many NFTs are worth millions?
People have become more interested in going online and finding things to do while online during the pandemic. The fact that so many people have had to work and study from home has made them more attuned to what’s online.
People who spend more time online will interact in more virtual spaces. They will be more open to various virtual goods and services, not to mention some things they might find while online.
Since these people are more likely to look around at things online, they might be more likely to discover NFTs. The increasing pool of potential NFT investors is something worth watching, especially as the market continues to grow in prominence.