• The study reveals why people buy NFTs, usually for long-term profits and utility.
• NFTs enable holders to lay claims on their unique items, allowing creators to tokenize real estate, art, collectibles, etc.
• The research survey revealed that 77.6% of respondents bought an NFT for its intended function while 76% intend to sell out their NFTs later at a higher price.
What are Non-Fungible Tokens (NFTs)?
Non-Fungible Tokens (NFTs) are digital assets that represent something unique and cannot be exchanged or replaced with another item of equal value. They can be used to tokenize real estate, art, collectibles, and other important things on the blockchain so they can be traded securely and efficiently.
Why People Buy NFTs
A Coingecko and Blockchain Research Lab study has revealed why people buy NFTs. Usually, these tokens enable holders to lay claims on their unique items for long-term profits and utility. According to the results from the survey conducted from December 2022 to January 2023 by CoinGecko and Blockchain Research Lab which collected 343 responses, “Using an NFT for its Intended Function” ranked number one at 77.6%. The second most important factor for buying an NFT was found to be “Long Term Profit” with over 76% wanting to sell out their tokens later at a higher price. Other reasons included gaining a stake in the DAO, enthusiasm for the technology or business model as well as being part of the community; however disrupting established structures or industries was ranked as the least crucial factor with 59.5% agreeing it wasn’t a priority when buying an NFT.
Growth Projection For The Market
The demand for Non-Fungible Tokens is rapidly growing with the total market value expected to hit $230 billion by 2030. This means anyone investing in a long-term plan for owning and selling tokens now could gain more if they get started soon as demand will likely keep increasing in coming years. Major companies have also been jumping into this industry despite recent trends showing dramatic falls from their high in January 2022; demonstrating how attractive this form of investment can be for those looking for potential returns on funds invested over time in secure digital assets such as artworks or collectibles tokenized via blockchain technology represented by non-fungible tokens (NFTs).
Benefits Of Buying Non Fungible Tokens (Nft’s)
Some benefits of buying Non Fungible Tokens include: having access to transparent transactions on the blockchain; ensuring proof of ownership; providing liquidity through trading platforms; being able to trade without intermediaries and providing fractional ownership opportunities among many others depending on what type of asset is tokenized via an issued non fungible token..
In conclusion, Non Fungible tokens provide many benefits that make them attractive investments especially when considering long term gains in value over time due their ever increasing popularity amongst major companies who are looking into using them either directly or indirectly which can only mean good things ahead when it comes to future projections regarding market capitalization over time..