Let me start with an important disclaimer: I don’t own many NFTs. And the few NFTs that I do own aren’t deemed valuable by the marketplace.
Still, I have a philosophy around buying NFTs that I plan to use and refine over time and want to share this philosophy for the record.
Good reasons to buy an NFT:
You appreciate the art for what it is. Buying art is always worth it if it holds some meaning, stirs some emotions, or makes you feel. It’s cool to buy something that you think is cool.
You believe in the artist. Buying an artist’s work is investing in the artist. It supports and encourages them. Sometimes, even if a particular piece doesn’t speak to you, it may still be worth buying it if you see the artist’s collection of works and are certain they’ll produce masterpieces in the future.
You believe in the community. Some NFTs are more than just icons and avatars: they’re memberships to exclusive communities. It’s worth reading the backstories and joining the Discord servers of the NFTs you’re interested in - see what the vibe is, read about future plans, etc.
You believe that worlds can be created around the NFT. NFTs are on the blockchain, so they’re as permanent as can be. Even if there isn’t an active community surrounding an NFT now, one may be built in the future. If you’re thinking of buying an NFT, take some time to imagine the worlds that can be around it. This is why Loot is so popular and valuable now.
Bad reasons to buy an NFT
To make money. If you’re just trying to make money off buying and selling NFTs, good luck. It’s impossible to know what the future will look like and which NFTs will drop in value. Invest in an NFT because you believe in it, don’t do it to make money.