NFTs: Is it all about COLLECTING?

5 Psychological Drives of NFTs

Ruben Brandt, Collector 2018

A Brief Introduction to NFT

NFT, Non-Fungible Token, which means that it’s unique and can’t be replaced with something else -unlike Etherium or Bitcoin which are also tokens but tradable and not unique-, and also a token that is totally digital.

NFT is a technology that is invented with the help of Blockchain technology that we all heard about for the last couple of years, especially. You can imagine an NFT as a chunk of data -which can be an image, gif, etc..- that is authorized, approved, and identified as a unique one. This is the point that Blockchain technology jumps in as a distributed and secure nature of it, the authorization mechanism is run by it.

Enough with technology, let’s jump into the question:
Why do people buy an image on the web for $69 million, while they can simply download it from Google?

Beeple, $69 Million, Sold

Then, Why People Interested In NFTs?

I’m going to examine the NFTs from the point of view of the people who are interested in creating one, purchasing one, or looking for it casually to find out more about it. I used a framework of Yu Kai Chou for reviewing the NFTs more structured way.

1- Epic Meaning & Calling

Make ART Great Again

Epic Meaning & Calling is the Core Drive where a person believes that he/she is doing something greater than herself.

NFTs help to Stop People From Copying Digital Art. This will protect digital artists’ works and values of the created digital arts as well. So, the rise of the NFTs supports the communities in the fields of different arts and increases the value of original digital creations.

2- Unpredictability & Curiosity

CryptoPunk, $7,584,485, Sold

Generally, this is a harmless drive of wanting to find out what will happen next. If you don’t know what’s going to happen, your brain is engaged and you think about it often.

When someone buys a unique creation as NFT, who knows the future value of that, it may worth billions!

3- Loss & Avoidance

This core drive is based upon the avoidance of something negative happening. On a small scale, it could be to avoid losing previous work.

Millions of dollars drive people into the feeling of they are missing the train.

4- Scarcity & Impatience

This is the drive of wanting something because you can’t have it.

Temporary prices, increasing bids, countdowns & time limitations drive people into the feeling of scarcity and impatience.

5- Ownership & Possession

Ether Cards Live Sale

This is the drive where people are motivated because they feel like they own something. When a person feels ownership, he innately wants to make what he owns better and own even more.

Status and being respected are always important for a lot of people out there. So, spending too much money on unique things as status symbols is really a common behavior.

Of course, status is not the only thing behind the behavior of collecting. Completing the set is a strong drive and owning a whole “set” of unique art is also a strong drive for collectors.

Conclusion

So, it doesn’t seem like it is all about collecting, right?

I don’t know if the NFT thing is a kind of balloon but I don’t feel like it. I believe and support especially the drive of “Stopping People From Copying Digital Art”. I wish the value of the creators and their creations would be paid off.

Wish you all a creative and productive lives!

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NFTs: Is it all about COLLECTING? was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.