The buying, selling, and trading of non-fungible tokens, or NFTs, continues to be a hot topic. But, as the industry of digital artwork continues to evolve, so will the ability of digital artists to make a living from their artwork.
In the digital age, NFT art makes sense. With so much progress in digital media, it’s perhaps not surprising that the idea of digital ownership over assets will change with it. After all, art, from photography to music to writing, has widely become digitized within the past couple of decades.
But to understand why so many people are interested in NFTs, you have to look at some of the underlying market aspects that are in play right now. Here are some of those top reasons why NFTs are popular and in-demand:
1. NFT art: makers and sellers
One of the biggest reasons NFTs are popular is that sellers are promoting them, mostly for their interests.
Sellers are often wildly excited about NFTs because they stand to easily profit from the sale of these digital assets. So when somebody like Snoop Dogg, who has quite a track record as a marketing artist, creates his own NFTs and puts some on the market, it creates hype and buzz that is part of the momentum pushing NFTs forward.
Tech news media reveals the artist already has an NFT collection called “A Journey with The Dogg”, and that Snoop is on an NFT review panel with Ashton Kutcher and Mark Cuban. Not to be outdone, meme-makers like Chris Torres of Nyan Cat fame are also leaping into the fray. The result is a new market that is, by any measure, booming, and it’s driven in large part by motivated creators.
2. NFTs: a status symbol
Another reason that you may have heard a lot about NFTs lately is that an artist nicknamed “Beeple” created something called “Everydays” – a digital mosaic of sorts. He then offered the NFT for sale, and it sold for a record-breaking $69 million at Christie’s auction house.
Most people who read about this in the news didn’t know the context of the deal. They just knew that some guy sold a digital art piece for $69 million. When you look more closely at the details, you see that people are buying NFTs partially as a status symbol. If you think about it, the same is true of physical works of art. That is, most of their value is derived from their collectible value.
“NFT Art gives anyone a stake in something that they feel is significant and culturally relevant. Valuable Art is something the 1% has had a monopoly on. NFT art allows the 99% to become involved.”
Kevin Godfrey, Fabriik CTO
So for digital artworks, NFTs represent that collectible value – that sense of ownership – even if it’s founded on a changeable URL or hash. Some analysts and outsiders are arguing exactly for this: NFTs represent one of the more chimerical ways to invest in digital or tokenized assets. And so the appeal of the NFT continues, as evidenced by all of those creators making them for their brands.
3. NFTs: fun finance
When you think about why NFT art is so popular now, don’t neglect this important reason. We hear a lot about financial technology and the use of new blockchain-related assets. You have front-running cryptocurrencies like Bitcoin and Ethereum, and smaller “altcoins,” as well as derivatives and funds based on blockchain-related developments, frictionless transmission protocols, and “smart contracts” built on the principle of decentralized finance. But all of this makes the average investor’s eyes glaze over.
Now, think about the ability to buy an NFT from your favorite musical artist or painter, or performance artist from Tik-Tok.
In these deals, the buyer’s relationship with the content creator is often more important, not whether some digital asset has a certain strike price or is trending in the market with candlestick analysis. In other words, people don’t want to participate in the wonkiness of the digital market. They can just pick up an NFT and say, “Hey, I got the newest thing (by my favorite artist.)”
Consider all of this as you make your way through a complicated fintech market that promises many things to many people. Decentralized finance has revolutionized lending and the use of “hard money,” and it has created its share of millionaires and billionaires. But NFT creation is a somewhat separate phenomenon, an unlikely application of technology to art, and deserves its own space in the blockchain world.
NFTs have been around for a few years, built on private platforms or more recently on unscalable public blockchains such as Ethereum. At Fabriik, we see the future of NFTs/digital assets moving into the mainstream.”
Money Button by Fabriik is the leading wallet provider in the Bitcoin ecosystem. Money Button recently launched the ability to create NFTs for your collectible platforms. Money Button is part of the Fabriik ecosystem.