Welcome back to exploring with ya boi David!
As you know I changed my career a little, from a statue to an NFT guy…I’m still working on my job description. In this blog, I will be explaining how NFTs become valuable, at the end of the day it’s just a picture on the internet right? Not like when I was a statue somebody cared what I was worth. But that doesn’t matter because you should know your own worth, KINGS & QUEENS. Ok enough let’s get to business.
How it all started…and how it’s going.
I still can’t believe it but yes someone bought an art piece for $70 million called The First 5000 Days back in 2021. Since then, NFTs have just become a hot topic in our culture. You can see Snoop Dogg, Justin Bieber, and a lot of other stars buying NFTs and incorporating them into their brand.
So NFTs are not just ordinary pictures, right? If they were just pictures, they wouldn’t have value at all, I guess. Ok, I would pay money for memes but “this is CalEd bLocKcHaiN and it means that the monkey is mine” or something like that.
This is how NFTs gain in value:
Special: An NFT can also have utility. Meaning, because I have this NFT in my possession, I will receive something in return, such as access to VIP parties, events, closed community, …
Downloadable: only the current owner of the NFT can download the file attached to it. Making it unlockable to the owner.
Sell-able: you can always resell your NFT. You SHOULD resell your NFT and trade it. You can make some serious cash trading NFTs. And this is what boost the value of the NFT as well!
Forever: NFTs are forever. Because the data doesn’t change, and because the blockchain is forever, you will always have that token if you buy it. You can always resell that token if you want.
I explained the concept of NFTs in one of my previous blogs, but I forgot to explain how and why they get value. It is actually pretty simple, so what happens is that collections that create the NFTs have a story behind them. Some of them give back to the community with many different things. This could be parties, VIP restaurants, or chats with important people where you can learn a lot of things. Their NFTs can be used for many different reasons, so what I want to say with this is that they have some utilities which are the “deal breakers”. For that reason, they gain a lot in popularity so the demand increases a lot and the price goes to the moon.
After this, some of the NFTs become unique and hold the price for a long time, well usually also because some famous person owns it or something. The value also depends on the blockchain and the people who invest in NFTs. So, what most people do is just buy and hold, but sorry for me, that is kind of boring. That’s why I started working on Allbum in the first place. We here think this should be more interactive and interesting for everyone.
Who knows what will be the trend in the future but just so you know, you might be starting this trend? That is what Allbum is encouraging with the platform.