Why Buy NFTs Collectability – Kraken Blog

For centuries, people have collected things. Among them, there may be nostalgic items such as ticket stubs and lucky coins. You may also find some particularly rare items, such as classic cars or limited-edition vintage watches.

In many ways, what we collect reflects who we are. Whether it’s the physical objects we hold in our hands, the experiences we hold in our hearts, or the digital works of art we admire on screen, the items we collect reflect who we are.

Often times, we become deeply attached to the most unique items we have collected during different stages of our lives.

Scarcity Increases Value

When things are scarce, only a few people in the world can own them. This exclusivity often makes them very attractive to aspiring collectors. As a result, prices are usually high due to high demand for these limited items.

This relationship between rarity and price is the driving force behind much of the collectibles market. Whether it’s an unused trading card from a player’s rookie year or a masterpiece of contemporary art, rare items are extremely hard to come by. That’s why people are willing to pay a premium to own them.

The market for limited-edition toys, stamps and art is worth more than $300 billion, according to one study UnivDatos Market Insights Report. But even those numbers pale in comparison to the potential of the relatively new form of collectibles.Non-Fungible Token (NFT) It represents the collection item of the next generation. These digital tokens are already opening the door to entirely new revenue-generating opportunities. Traditionally, collectibles have relied on intermediaries to verify authenticity and ownership, but NFTs allow a distributed group of individuals to share this responsibility.

NFTs are traceable digital tokens immutably linked to a unique tangible or intangible object. These tokens are used to refer to the item’s current owner. Items can be anything from computer files stored on someone else’s hard drive to physical items stored in a safe deposit box.

All NFTs live on anyway blockchain. This technology provides a completely transparent, globally accessible, and censorship-resistant method for tracking and storing proprietary information. This factor allows anyone in the world to purchase and prove that they own an item, no matter where in the world the item is located.

Generally speaking, any NFT can potentially become collectible. However, there are some NFT-linked items that the creators intentionally built to be collectible. Often the creator launches her NFT as part of a very limited collection or based on an existing franchise. Examples of these include: Time: Pieces build a better future, Damien Hirst: Currencyand Anthony Hopkins “The Eternal Collection”.

Beyond aesthetic qualities, various NFT-based collections offer their owners a range of perks and benefits.

Some collections focus on the following benefits: NFT community membershiphosts live events for members to network and build relationships.

Others allow individuals to track ownership of unique digital items in the Metaverse experience. Distributed and sandbox.Games that can be earned by playing Axie Infinity and star atlas NFT is also integrated. This feature allows players to truly own the in-game assets they acquire. Based on these in-game achievements, an individual can earn items of real-world value in the form of her NFTs.

What advantages do NFTs bring to the collectibles market?

Because NFTs exist as purely digital records that refer to (most commonly) intangible items, they have several unique advantages over physical collectibles, including:

• Verifiable reliability (no middlemen): Anyone with an internet connection can verify the authenticity of an NFT. Anyone can research any NFT by copying and pasting the wallet address. This verifiable reliability avoids third-party costs and provides an unequivocal degree of certainty about the authenticity of the NFT. While it is true that NFT media can be copied, blockchain technology makes it easy to track which NFTs are real and which are fake.
• Immutable Ownership: Similar to the ability to track authenticity, NFTs make it easy to track who the rightful owner of a genuine NFT is. When you purchase an original NFT, the blockchain network will cryptographically store proof of ownership on the blockchain. This system provides a highly secure and tamper-proof way to track ownership.
• Global reach: The decentralized nature of blockchain technology makes it easier for NFTs to have a global presence. Because NFTs are digital collectibles in nature, it’s much easier to connect and organize groups with other owners, regardless of their geographic location. Moreover, when buying and selling NFTs, it is usually much easier to access the highly liquid secondary market than when dealing with physical collectibles.
• Damage proof: Certain physical collectibles must be in perfect condition to maintain their value. NFTs, on the other hand, have no physical shape and cannot degrade or be damaged over time.
• Personal safety: The anonymity of blockchain-based NFTs means that owners can buy, own and trade these assets without sharing their identity.

What do collectible NFTs offer?

NFTs are valuable for the same reasons physical collectibles are. Rare, aesthetically unique, and represents membership in a community of fellow owners.

Additionally, some NFTs exhibit traits that make them rarer than others in the collection. These qualities allow individuals to quantify the rarity of various NFTs and base their numbers on this score.

Beyond rarity rankings, owners of certain NFT collections have begun creating their own exclusive communities offering member-only access to private channels and platforms. Boad Ape Yacht Club (BAYC), graffitiand cool cat These are all examples of NFT membership-based communities. This process aims to add an extra layer of utility to collectible NFTs and keep demand for these limited assets high.

Whether or not you believe that digital collectibles offer the same “value” as physical collectibles, there is no denying that the market is of global interest. Already, with sales that match the price of some very valuable physical collectibles, we are definitely in uncharted and exciting territory.

Interested in starting your own NFT collection? Apply Kraken NFT today!