There is probably no right way to discuss with enough depth why NFTs are so expensive, and one would have to examine why anything is expensive in the first place. Ownership is expensive because we value the idea of owning something more than the actual thing itself.
In general, NFTs are expensive because of their scarcity. Yet, numerous items may be rare, but that doesn’t make them more expensive. Profit doesn’t always follow scarcity.
The task is to find a point of convergence between scarcity and desirability. The most expensive NFTs possess both of them. At least, they do in the case of some people.
There are lots of inexpensive NFTs out there; it’s just that the expensive ones tend to make the news. Undoubtedly, a number of the assets remain listed on auction sites until they have been removed.
Let’s talk about bragging rights. Bragging rights are a huge factor in why many of the NFTs are being sold for high prices.
Certain NFTs gain value due to people’s desire to own them. Auctions are often used to sell NFTs. When we see someone else bidding on it, we consider the item desirable, so we want it too.
Currently, it is impossible to predict the growth of NFTs. The high prices may create unaffordable, bloated sales or they may become the only method to purchase digital assets.
As the online world continues to evolve, internet copyright laws are struggling to keep up. The ever-changing nature of the internet makes claiming ownership of a digital artwork a challenge. This is being changed by NFTs. A big reason why NFTs are so expensive is that it’s the first time anyone ever could buy universally recognized ownership of a digital asset. In other words, it was a market ready to be filled.
Additionally, we need to consider who is buying these expensive NFTs. The people who are buying them are cryptocurrency enthusiasts and investors. Many of the purchases of NFT works will be driven by genuine enthusiasm for the art, but the most expensive purchases will be driven by investment.
You invest in a digital asset rather than a physical one. With investments, you hope that the value of the asset will increase. Then, you keep your money safe as a digital asset, which is profiting on interest.
Nevertheless, NFTs need to make these kinds of high-end sales to be seen as the premier method of selling online assets. Since established artists are viewed as having a high value anyway, their works sell for a high price when they are sold as NFTs.
Among NFTs, it may be the skill of the asset, its history, the output of the artist, or simply its reputation. These are just some examples. It is also important to note that NFTs are becoming more popular, and many people are eager to own them.
In a nutshell: NFTs are expensive because, right now, people are willing to pay for them. This isn’t all that different from anything else.