Many people are beginning to wonder whether it is really worth it to spend thousands or even millions of dollars on something that can be obtained for free on the internet, given the increasing popularity of NFTs.
According to recent study conducted by Finder.com, around 3% of American internet users currently own a non-fungible token. Finder conducted an online survey of over 28,000 individuals from 20 nations to compare NFT consumption, discovering that the United States ranked third-last for its usage.
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Since non-fungible tokens are based on a commodity-like technology, their users stand to profit financially from their use. It is possible to validate NFTs without a central authority, and to use a digital signature to verify their ownership and originality, thanks to the blockchain.
However, a significant portion of the buzz surrounding NFTs stems from the opportunity to profit from them. Pablo Rodriguez Fraile, an art collector, purchased a 10-second video clip from an artist for $67,000 before selling it for $6.6 million.
It’s All About The Money
Some 64.3 percent of the 1,318 respondents to a new survey released and conducted by DEXterlab on June 10 stated that the primary reason they acquire NFTs is “to make money.”
The second most popular reason people acquire these things, according to the survey, is “to join a community and flex.” This is the top reason cited by 14.7% of survey respondents for owning certain NFTs.
Some 12.4 percent of survey respondents are digital art collectors, while 8.6 percent purchase to gain access to games and tools, generally in the form of membership privileges that grant access to artists’ work, rewards, and other benefits.
Indeed, making money is one of the biggest reasons why people buy digital art.
In an article published on Phemex on April 26, Jeffrey Craig listed four reasons why individuals purchase NFTs: to gain access to unique privileges, to profit, to maintain value, and to secure digital ownership and rights.
Crypto total market cap at $1.08 trillion on the weekend chart | Source: TradingView.com
NFT: Some Make Money, Others Don’t
Despite the fact that the primary reason individuals purchase non-fungible tokens is to generate money, 58.3% of NFT holders surveyed by DEXterlab reported that their NFTs have not been particularly profitable thus far.
Nonetheless, around 41.7% of respondents indicated that they were able to create a profit on the NFTs they had previously acquired.
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Meanwhile, American men are more likely than women to acquire NFTs, with 4.6 percent of men and 1.2 percent of women owning at least one.
Finder.com data indicate that the gender disparity in America is greater than the global gender gap by 3.3 percentage points when it comes to non-fungible tokens.
Featured image from Richard Crouse, chart from TradingView.com