With the popularisation of Non Fungible Tokens or NFT for short, everyone is curious to find out what is a good yard stick to value what a great price for an NFT should be. Many people believe it is just a bubble and doesn't make much sense as digital art can be copied and replicated several times while others feel it is a good way to digitise the art and hold the same value as any art or collectable has.
Replication of NFTs
But regarding the case that it can be copied and replicated easily, a simple reason it cannot be is similar to the way BTC cannot be replicated. A person can make more editions of that NFT but every NFT will have some variations like data of the issue date, symbol etc. which is the reason why many old and initial collectables are more valuable and the later ones even if they were similar looking.
Also many creators also incentivise people to buy their coins by attaching some actual value with it like meeting the person who actually made the NFT, or any other similar perks.
So you must be wondering now, how should one figure out which NFT is worth buying and which is not. Although there is no yard stick to find this out but one way is to see if the NFT has Notable(N) person behind it, Should be First (F) and should have something Tangible (T) in short NFT??.
1. Notable
So If an NFT is issued by some really Notable, famous and influential person that the world knows about, your investment is safe as the value of the NFT will grow as the person will grow. Suppose Virat Kohli (captain of Indian Cricket team) or Elon Musk decides to issue an NFT, that NFT will have a huge value and will grow as the person will grow as compared to someone like me?? (why would someone buy an NFT issued by me??)
2. First
So next thing is, if the person selling his NFT is in someway the first thing done or created by him/her, it will be really very close to him/her and so much more valuable(like photo of first office, car, dog, etc). This the same reason why Twitter CEO Jack Dorsey's First tweet has received bids of $2.5 Million. So try to pick up something which holds some emotional value about it.
3. Tangible
Every NFT you buy should have some tangible element to it. It sounds funny as NFTs are digital, but by tangible I mean that the NFT should have something to back it, like a guarantee of giving away the actual painting or art that the NFT has or even a meeting or lunch with the person issuing it or something of similar kinds. Like the earlier examples if you get a chance to meet Virat Kohli or Elon Musk or Jack Dorsey, their fans would like to pay a very high price to buy that NFT.
Concluding Thoughts
NFT is a very new concept and is definitely going to grow in the future especially for fans who like to keep some memories of their idols with them and this has a backing of blockchain. Moreover, I feel sports NFTs are really a space I would look keenly into as the sportsmen can get a chance to sell and share some of their best moments during the games.
One thing I should warn you about NFTs are that their value is highly subjective and can vary from person to person For eg. an NFT issued by Virat Kohli or Sachin Tendulkar will be really very high in India due their popularity in the country, but people in US may not show much excitement for the same. Also, if an NFT is issued by some XYZ celebrity, and he/she may not be able to do that great later on in their lives there is high chance that, that NFT will definitely lose value. So, Buy NFTs only if you and the people around you really value it and not because your friend asks you to invest in some NFT.(Please Write in the comments below if you want to add something more to the criteria or want to share something)
Thank You
Jai Hind
