NFTs themselves are not the product, but they are bought and sold as a product by individuals who probably only bought them in the hope of making a profit. This is one of the reasons why they have become so popular in 2021, but it is also why many people misunderstand what they actually are.
Headlines like “Bored Ape Yacht Club NFT sells for millions” or “Why do people buy JPEGs for millions?” have skewed people’s view of this technology. In fact, it completely ignores all the technological value of NFTs and focuses on just that image.
NFTs themselves are not the product. Its the value they represent
Many people see NFTs as a product rather than what they actually are. They see people buying, selling and trading them. They also see people paying more and more for rare images in a collection. And yes, there are also certain collections that have the image (the art) to generate value with for investors. But the hidden value lies in the technology.
You could best think of NFTs as a value product because they can add value to their owner in various ways. Examples include proof of authenticity, infinite lifetime (the blockchain is there forever), access rights, property rights and much more. The list goes on endlessly especially as new valuable applications are constantly being found. This is what blockchain and NFTs also ultimately bring to the world and this is vastly underestimated by most of us, simply because they do not have enough knowledge on the subject and the possibilities
NFTs are still most commonly seen as images now, but for an ever-growing number of markets and big brands, the image is the least important thing about NFT technology. Removing the JPEG on the front end of an NFT and seeing its underlying value and applications (such as access to events, giveaways, discounts, games, and so on) completely changes the game and therefore the opportunities for NFTs.
I think it is important to understand that not every NFT needs to capitalise on the added image alone. For example, a shoe brand, which mints a pair of shoes as an NFT. You can use those shoes for your avatar in the metaverse, you can redeem the NFT for the real physical pair or sell it at a much higher purchase value because it is a unique pair. We live in a world that allows us to be unique in almost everything we do, and NFTs are just like that. You can buy NFTs for the technology, for the art, or for whatever reason, the applications are endless and they give the NFT that very value.
The bottom line
The mainstream media and all the fraud cases on insecure blockchains have tainted the way many people look at NFTs. The real value for NFTs comes from the underlying technology, rather than what you only saw on the surface until now. Seeing the real value of it, with added blockchain on which no transaction is possible without a verified identity, opens up a whole new world! So you can no longer argue that NFTs have only a limited number of use cases, as the number is growing every day. My advice: take the time to understand the underlying technology and apply it to your business or your ideas and start today!