Niftify Demystifies: Why are NFTs Worthy of Value?

We've all seen the headlines that say different NFTs have fetched insane amounts of money in auctions. It's almost not even worth linking to the articles because they are so ubiquitous and easy to find. The question is, what makes them worthy of these massive amounts? Many would say NFTs are a bubble, and they […]
Guides
June 27, 2022
We've all seen the headlines that say different NFTs have fetched insane amounts of money in auctions. It's almost not even worth linking to the articles because they are so ubiquitous and easy to find. The question is, what makes them worthy of these massive amounts? Many would say NFTs are a bubble, and they may just be correct (to an extent) but there's more to it than that. A lot of detractors often bring up the issue of JPEGs and how easily NFTs can be right clicked and saved. These complaints show that they don't understand what an NFT even is. The NFT is not even the art itself. The NFT (on which ever blockchain) is the certificate of authenticity. The certificate of authenticity is what ascribes value to any work of art. NFTs help to simplify the process of generating those certificates by removing the need for paper in the process which also prevents tampering, damage or loss in future sales or transfers from person to person. NFTs are saved safely in the blockchain removing any possibility that they could be destroyed or lost. The art market is just one aspect of use for NFTs and other use cases will open as the technology continues to mature and develop properly. Niftify is getting ahead of this trend by creating a safe environment for NFTs to be traded in line with the existing rules for sums of money which requires that we know our customers and be aware of the sources of their funds to protect against potential negative activities and ensure laws are respected and upheld. NFTs will not continue to prosper as technology if they gain a reputation of being a front for money laundering.
Niftify looks forward to an environment where high value investors will feel safe to invest in this sector and support this technology as it grows and develops to its full potential but in order for NFTs to make it there, users should understand that there is always a potential for rapid shifts upward and downward. In order to achieve massive growth, there will always be the potential for massive losses. Many of the detractors of NFTs point to the Greater Fool Theory which is the economic concept that there is always a greater fool willing to invest in search of greed, however those investors are often willing to hold and wait long enough to achieve these potential gains. NFTs are a concept that will only grow more value as they continue to mature.
But there are several things to look for in NFTs that do eventually grow in value.
First, seek out an active community that has many members and a real concept.
Second, look for artistic quality. If an NFT idea has no artistic value, it is very hard to envision a situation where anyone would want to buy it.
Third, find out how it benefits you to hold it. Many NFTs now accrue benefits to the users and holders, such as Niftify's new Premium Profile Pass and our new Virtual Gallery Key which allows you to show off your NFTs in a Virtual Gallery as a keyholder.
Finally, look for a community that is genuinely in it for a reason. If everyone in the community is looking for the dollar value and to sell immediately, that is not a positive place to invest. This is the Greater Fool Theory in action. Ideally you neither want to be the fool, nor have anyone else be fooled. If you join a community where it seems that everyone else wants to sell, and you are buying, they will dump on you. That's not necessarily even wrong, but if you are investing that will result in losses for you. Always be careful and do extensive research to verify as much information as you can. We here at Niftify are truly trying to build a community based on love for this technology and a place for users to learn and experience NFTs in a positive way.
If every conversation in their community has to do with the price, take that as a sign. Price is a low priority in any valid projects. They are concerned more with artistic quality and creating value for users and holders. Over time, legitimate projects show and prove their status. If you make good choices, you will reap benefits. Always trust your instincts and verify every bit of information you can before making decisions. Until next time, let's Niftify the world!

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