2.9 million dollars that's the eye-watering price
Sinai Estavi paid in march 2021 for an nft of the first-ever tweet.
About a year later astavi looked to cash in putting his nft up for auction on the open
seat marketplace for a heart-stopping 48 million dollars but after two weeks on the market it still
hadn't sold the highest bid just 10.3 eth or about $31,000---99% less than what Estavi paid.
For NFT critics, this epitomizes everything that's wrong with NFTs people paying grossly
overinflated prices for what are essentially jpegs that we can "right click and save" for free.
You think it's funny to take screenshots of people's nfts huh this conversation would
be screenshotted itself and then spread across online spaces extremely quickly
even if you save it it's my property you are mad that you don't own the art that I own.
But to understand what makes an nft valuable it helps to first understand what an nft is.
A non-fungible token is a limited edition digital asset that cannot be traded for a
copy or an imitation because their history and ownership is recorded on the blockchain.
I'll have you know that the blockchain doesn't lie.
Meaning that although you can't take a screenshot of the first-ever tweet and turn it into an nft
no one should ever mistake yours for the one that Estavi bought
from the founder of Twitter Jack Dorsey.
Delete that screenshot.
But so what why do people want to buy nfts?
Well, early adopters might want to buy NFTs because of the novelty. Early adopters tend to be
risk-takers and trend-setters.These people buy NFTs because they like being the first
to try something new, to be able to say “I had an NFT profile pic before anyone else.”
I own it.
But these aren't the only people buying NFTs. Sports teams, musicians, festivals,
and brands are all issuing NFTs as a way to connect with their fan base. Some of these NFTs
come with perks like VIP passes, celebrity meet and greets, or access to exclusive merchandise.
So as Web3 and the new layers of the internet are being built out,
NFTs will have an important role to play as a kind of digital membership card
that grants us access to clubs, DAOs, and VIP memberships.
NFTs can be more than just images, too. The NFL is selling
game highlights as NFTs. The band Kings of Leon sold their album,
When You See Yourself, as a collectible of NFTs. And Marvel released classic comic books as NFTs.
People buy these NFTs for the same reasons that they buy real world merch and collectibles.
NFTs are also bringing new revenue and ownership models to the gaming industry. In a blockchain
gaming metaverse, NFTs can represent anything: trading cards, characters, potions, skins,
crafting materials, virtual real estate, and so much more. And some games require you to buy NFTs
before you can play. Others are free to play, then you earn or purchase NFTs as part of the game.
People who buy gaming NFTs do so because it lets them own a piece of the game. They
like that they can trade or sell their NFTs with other players. They also enjoy earning
in-game currency with real-world value. Axie Infinity popularized the idea of play-to-earn
with people collecting the cryptocurrency SLP in game and then selling it on the open market.
And of course, the potential to earn money is another big reason people buy NFTs,
but as Sina Estavi found out,
not all projects will be as successful as Cryptopunks or the Bored Ape Yacht Club.
Buying NFTs from emerging artists, game developers,
and bands is risky and highly speculative. But it is also a way to support those creators while
bypassing traditional middlemen like record labels, publishing houses and game studios.
Make sure you do some research first and one good tip
is to stay within the comfort zone of your usual interests.
We've had 25 years of an internet where people don't own things digitally we have a new invention
it's called the blockchain where people do own things digitally every person that's watching this
right now that is lucky enough to be alive in 15 years will own multiple things digitally the end.
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