Why do people want to invest in NFTs? 32% did it to feel good about their social status in the cyber community 36% to earn a good amount by reselling them

A few years ago, Kevin McCoy created the very first NFT, which was then called a mounted graphic. Non-Fungible Tokens (NFTs) represent exclusive ownership of an asset, which could be artwork, memes, music, or collectibles in the Metaverse.

To understand what people perceive when talking about blockchain-related things, CenturyLink conducted a survey in which a thousand people were asked to say what they knew about NFTs. 645 people said they know this term. At the same time, 30% of these people have already purchased at least one token. 22% of people said they would never consider buying even one. Respondents had different opinions and choices about buying NFTs.

32% of them bought NFTs to feel good about their social status in the online community. According to them, buying NFTs can be compared to owning a house or designer dresses in real life. In addition, 36% of respondents bought NFTs to earn a good amount by reselling them. Moreover, it is not necessary to always make a profit, because it is difficult to predict market reversals. In 2021, NFT purchases skyrocketed with the rise in popularity of digital tokens.

In the fourth quarter of 2021, NFT trading volume reached $10.7 billion. Ethereum, Bitcoin and other cryptocurrencies also showed record prices. Sales are currently low due to the cryptocurrency market crash, but recent crypto markets such as GameStop are growing.

Additionally, more than half of respondents said they view NFTs as digital storage for their capital; 53% of people said they would be happy to take out a loan or use their savings to buy an NFT because they see it as their method of preserving value.

About 33% of respondents said they could spend $500 to buy a single digital token, while 21% said they would be willing to spend more than $500. In the study, it was observed that Gen Z is mainly interested in buying NFTs and they can spend up to $100,000 on NFTs, while 14% of the same age group can spend more.

It is important to note here that it is not only Gen Z that wants to buy NFTs, but also people of all age groups and they all have different buying goals. Millennials and Gen X buy NFTs at nearly 30% and 18%, respectively, while boomers only buy 13%. Many people (41%) said they wanted to buy between 2 and 5 NFTs, while 14%, including millennials and boomers, said they wanted to buy 11 or even more.

According to the study, 40% of Gen Z buy NFTs for profit, 36% of Millennials, 29% of Boomers, and 42% of Gen X. Gen Xers are more willing to buy NFTs to maintain their social status among all generations. When it comes to purchase methods, Millennials use their savings to buy ENFs (33%), Boomers use their income (60%), and as mentioned earlier, Gen Z (29%) take out a loan to buy ENFs. Additionally, all generations embrace NFT as a legitimate art medium.

Most respondents agree that NFTs are an ideal investment. This allows them to make a profit (26%) and show off their wealth (55%).

Source: CenturyLink

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See also:

According to Tidio, 60% of Gen Z consider NFTs a scam and fear them, while less than 10% consider them a serious investment.

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According to Google’s latest search trends, NFTs and the metaverse may just be a passing fad despite the huge buzz they’ve generated