People like to collect and there are several reasons people collect NFTs specifically.
NFTs have skyrocketed in recent years. Two key reasons are the rise in wealth among people holding crypto assets and the emergence of the Ethereum platform for writing smart contracts. But a more fundamental reason is people like to collect things.
Let’s dive in.
Table of Contents
Introduction
Collecting is in the human DNA. People like to collect things. In the extreme case we call these people hoarders. As hunter-gathers we started by collecting or hoarding supplies for hard times. We accumulated items for trade. We collected shells and other items as a medium of exchange. Collecting was a means of survival. Here we are going to explore some of the more modern psychological reasons people collect NFTs.
1. Pleasure And Enjoyment
People collect NFTs because its fun. I used to collect comic books as a kid. I enjoyed reading comic books. I was big fan of Marvel. I just collected what I liked. My favorites were Conan, Spiderman, and the X-Men. Captain America and Iron Man are very popular but they were not for me. I don’t own any of either. Now I’ve started buying NFTs. Right now I stick to what I like and what gives me joy.
2. Collecting As An Investment
People collect NFTs because there is potential to make money. Some try to flip their NFTs. They buy initial mintings cheap and then sell them when the price goes up as people discover the project. Other people are HODLRs. They are in it for the long run. NFTs are also a way to diversify a crypto portfolio the way investors diversify their portfolios using fine art, wine, and antiques.
3. Social Interaction
People enjoy talking and exchanging information with other people and collectors. Community building is the key for almost any NFT art project. With NFTs the social interaction occurs mostly on Twitter and Discord.
4. Recognition And Prestige
People like to flex. They like the prestige in owning unique and valuable art, wine, antiques, cars, etc. They want people to see their collections. The same is true for NFT art. They proudly display their NFTs on profile pics. They print them out to display on their walls. Virtual spaces are being created for people to display their NFTs in virtual galleries.
5. Thrill Of The Hunt
New NFTs are being released every day. Its exciting looking for art you enjoy and would want to hold and display or even flip. Some projects like Hashmasks have included hidden artifacts in their art not specified by the metadata. People comb through the art looking for these artifacts that might hold hidden value. For many people the thrill of the hunt eventually becomes the primary reason for collecting.
Final Thoughts
Now that you understand the 5 reasons people collect NFTs, what’s stopping you from diving into and investing in or creating NFTs.
Even as I’m writing this VISA announced it’s purchase of a $150,000 CryptoPunk to add to its corporate collection of historic artifacts.