Why Do People Buy NFTs:7 Reasons Explained

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DappRadar has reported a whopping 24.7 billion worth of organic trading volume throughout the whole of 2022.

As seen in the statistics, people have been buying NFTs in large volumes, but why do people buy them?

What drives this NFT mania behavior in the NFT space?

In this blog post, I will explain seven simple reasons why people purchase NFTs.

Each reason will be accompanied by an example to help illustrate it.

Keep reading to learn more!

What are NFTs?

NFTs are non-fungible tokens that are stored on a blockchain. They are unique, digital assets that can be used to represent ownership of real-world items such as art, music, clothes, and land.

Why Do People Buy NFTs?

1. As A Status Symbol

For some people, having digital ownership over rare or limited edition digital art is a way for them to show off their status symbol or take pride in their collections offline with friends and family members.

People who purchase NFTs as a status symbol are often looking to demonstrate their support for the creator or project from which they purchased the token.

Purchasing NFTs gives them a sense of ownership over something exclusive and one-of-a-kind that can’t be replicated.

Many people take pride in showing off their digital art collection on social media circles, or offline with friends and family members.

Other high-profile individuals may also purchase NFTs to showcase their wealth and influence, as well as increase visibility among their fans and followers.

Here are a few other examples of NFTs that can be used as status symbols:

  • Rare digital artwork – unique, one-of-a-kind pieces that capture the attention of art collectors and enthusiasts.
  • Crypto Collectibles – Limited edition characters, items, and in-game assets that can be purchased from platforms such as Etheremon and Blockchain Cuties.
  • Cryptocurrency blocks and coins – special limited edition editions that have been minted in small numbers.

2. To Own an Original Digital Asset

Many people also purchase NFTs as a way to own an original digital asset that cannot be replicated or counterfeited as traditional assets can.

Owning an original digital asset has many benefits. It can be seen as an investment; some NFTs appreciate in value over time, giving you the potential for good returns.

It also allows you to express your individuality; owning something unique sets you apart from everyone else.

Finally, it’s a great way to support and show appreciation for NFT creators: by purchasing their work, you’re helping them to continue creating more unique and innovative projects!

Some may buy NFTs as a form of diversification of their assets outside of the internet world in the physical world such as real estate, equities, etc.

As the NFT market works really differently from other collectible markets and the stock market, people are looking for alternative investment opportunities.

3. To Support Creators

People purchase NFTs to support the creators who made them, giving them their direct share of value without having to go through any intermediaries.

Supporting creators through the purchase of their NFTs is a great way to show your appreciation for their work.

By buying one of their unique digital assets, you’re helping them to continue creating more awesome projects!

Plus, you’ll be connecting with like-minded people who are passionate about the same things as you.

It’s a win-win situation – not only do you get to own something cool and original, but you also get to support artists and developers who bring exciting new ideas to life.

4. To Display Passion and Pride

Some people find joy in being able to display their passion and pride in owning a unique digital asset, different than everyone else’s on the planet that can’t be replicated or taken away from them.

This digital signature makes each NFT unique. For example in the Bored Ape Yacht Club NFT collection, smart contracts ensure that each bored ape is unique.

Owning an NFT is a great way to show off your fandom for the project or artist behind it.

It’s also a great way to signify that you are part of an exclusive group with special access to something unique and limited edition.

For example, some people collect hand-drawn NFTs from his VeeFriends NFT project from Gary Vaynerchuk in order to subscribe to his 12-and-a-half values.

Each of his NFTs has utility: they are essentially conference passes for VeeCon, his conference held each year.

This means that when you own NFTs with high utility, you’ll be able to have VIP access and even event tickets to important NFT events.

5. To gain access to exclusive rewards and benefits

Some people collect NFTs for the exclusive rewards and benefits that accompany them.

For example, many projects have special editions of their NFTs with additional perks such as access to private events or early access to new products and services.

These sorts of rewards can be incredibly attractive to those looking to get ahead in the crypto space or just to show off their passion for a certain NFT project.

Additionally, some people purchase NFTs in order to participate in special auctions and competitions that are only open to owners of the asset.

These can be great opportunities for investors looking to make a profit or even have some fun in the digital world!

6. To Invest In The Decentralized Future

People buy NFTs because they want to be part of the decentralized future that blockchain technology brings and see it as an investment opportunity.

Many millennials are looking to shift the paradigm and invest in digital assets, believing that the traditional financial system is not something they want to hold all their assets.

Some even are willing to spend millions of dollars on them, although most of them are celebrities, as they have enough money to do so.

NFTs offer a great way to diversify one’s portfolio and benefit from the potential appreciation of digital assets over time.

Many people also find comfort in knowing that their money is safe from inflation or censorship as it is all stored on blockchain technology,

7. To Participate In A Community

Many NFT owners join the community around certain projects, artists, or ideas by purchasing tokens as a way to show their support as well as unlock exclusive benefits that come along with being part of this community.

Supporting creators through the purchase of their NFTs is a great way to show your appreciation for their work.

Plus, you’ll be connecting with like-minded people who are passionate about the same things as you.

It’s a win-win situation – not only do you get to own something cool and original, but you also get to support artists and developers who bring exciting new ideas to life.

Final Thoughts

NFTs have become incredibly popular due to the wide range of benefits they offer.

Whether you’re looking for a way to show your fandom for a project, gain access to exclusive rewards and benefits, invest in the decentralized future, or simply participate in a community, NFTs are an attractive option.

With their continuing popularity and versatility, it’s clear that NFTs are here to stay.

I hope this article has answered your question “why do people buy NFTs?”.

So why not join the revolution and get yourself some NFTs today? You won’t regret it!

Thanks for reading and all the best in your NFT learning journey!

Justin Chia

Justin is the author of Justjooz and is a data analyst and AI expert. He is also a Nanyang Technological University (NTU) alumni, majoring in Biological Sciences.

He regularly posts AI and analytics content on LinkedIn, and writes a weekly newsletter, The Juicer, on AI, analytics, tech, and personal development.

To unwind, Justin enjoys gaming and reading.

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