What is NFT?
NFT stands for a non-replaceable token. It is the data unit that is created on Blockcahin and is unique. NFTs can be digital products such as photos, videos, audio, and other digital files. NFTs are bought and sold with crypto money whereas some marketplaces also offer the buyer the option of buying with dollars.
Is NFT an investment vehicle?
The first question that comes to mind is, why would I pay for something that I could right-click and save to a computer? Firstly, you cannot resell the digital item that you downloaded to your computer. Since the data uploaded as NFT is on the blockchain network, the buying and selling activities are also carried out there. The person who buys the artist’s work can put up the work for sale again and, unlike traditional art, receives the percentage he has set in advance per each sale.
Buying an NFT is no different from buying a Table. Whether we like it because we like it or we think of it as a financial investment, we can buy and sell it. That is to say, registering on a computer does not make the person a certified owner.
Why are they so expensive?
In fact, they are not expensive; we think so only because we have heard the news of the most famous ones. It’s like the Mona Lisa painting has increased in value as it has become more famous.
In March 2021, NFTs became even more famous and gained even more reliable recognition when his work “The First 5000 Days”, created by Mike Winkelmann (Beeple) with a collage of 5000 paintings in 13 years, was sold for a record price of $ 69.3 million.
According to the Decembers of 2021, “Bored Ape Yacht Club” is currently among the most expensive NFT collections. This collection consists of 10,000 NFTs, each of which depicts a monkey with different characteristics and visual qualities. The fact that Jimmy Fallon, Post Malone, Marshmello, Shaquille O’Neal also have Bored Ape has led to a rapid rise in names such as Post Malone, Marshmello, Shaquille O’Neal.
Art collections such as Cryptop Dec, Pak’s ‘The Merge’ and Cool Cats are also among the most expensive collections available. A Cryptopunks has set a record by selling for over $532 million. This work of art shows the potential of NFT sales in the future.
Let’s not forget that the most expensive NFT has not yet been sold.
Benefit to the Artist
For many years, digital artists have only shared their works on online platforms without compensation. They were forced to pay commissions of up to 70% in the galleries where they sold their physical prints. Thanks to the NFT, these commissions have fallen to very low percentages. Now, buying and selling value like traditional art has allowed me and most digital artists to see the value they deserve. Thanks to NFT, many artists claim that their lives have changed positively.
As time progresses, the NFTs will become normal and I think we will always feel as if we have as part of our lives.