Why NFTs Have Value: Scarcity and Ownership
The value of NFTs is driven by their scarcity, uniqueness, and demand. Unlike traditional digital files that can be copied infinitely, NFTs prove ownership and authenticity, making them valuable to collectors and investors.
Key Factors That Influence NFT Value:
- Scarcity and Rarity: Limited-edition NFTs are more desirable.
- Authenticity and Provenance: Ownership history is verifiable on the blockchain.
- Utility and Functionality: Some NFTs provide in-game benefits or exclusive access.
- Community and Hype: Strong communities drive NFT demand.