It’s quite possible that interested individuals have heard about NFTs. After all, some of them are sold for huge amounts of money, so they get a lot of coverage in the news. For unfamiliar people, NFTs are a kind of crypto asset. In fact, the term refers to non-fungible tokens, as opposed to cryptocurrencies and other alternative tokens. Fungibility refers to how well one asset can be exchanged for another of the same type. Something like wheat is a great alternative, as most people don’t care about the subtle differences seen between a wheat bushel and another bushel. In contrast, something like land is the exact opposite, as each part of the land is unique. Therefore, interested individuals should be able to infer that each NFT is supposed to be unique. Make these crypto assets completely different from cryptocurrencies. Cryptocurrencies cannot perform their intended function unless they are substitutable.
In both cases, the NFT is associated with a digital file. Many people believe that ownership of NFTs is synonymous with ownership of associated digital files. However, that is not always the case. In many cases, ownership of an NFT means ownership of the right to use the associated digital file. This can be commercial or personal non-commercial. Furthermore, it is important to note that it is unclear how meaningful the ownership of the associated digital files granted by the ownership of the NFT is. This means that NFTs are so new that it will take some time for the law to catch up. However, there are some other issues. One is when it is very easy for others to copy and use the relevant digital files. Second, it can be very easy for others to create more NFTs based on the associated digital files. The whole situation is not helped by the presence of fraud throughout the NFT world. It should be mentioned that there is a considerable amount of variation in those digital files themselves. Examples include art, music, and in-game assets. As such, this can have a meaningful impact on things, so it’s another thing that interested individuals need to look into.
Why are the boring Ape Yacht Club NFTs so expensive?
The Bored Ape Yacht Club is one of the most famous NFT collections out there. It consists of 10,000 NFTs associated with 10,000 pictures of boring apes, but with slight but meaningful differences to interested individuals. Much has been said about the boring Ape Yacht Club. But the most important part is that these NFTs were able to sell for so much money that there are NFTs that could sell for over $ 1 million. Interested individuals may be wondering why these NFTs can be sold at such high prices. After all, even excluding extreme outliers, it’s still common for one of these NFTs to sell for over $ tens of thousands. Bored Ape YachtClub NFT looks excessive even if it has the right to commercialize.
The less useful answer is that the price of these NFTs is determined by the interaction of supply and demand. Basically, supply can be seen as different quantities of a particular commodity supplied at different prices, while demand can be seen as different quantities of a particular commodity requested at different prices. I can do it. The price of a particular good is determined by the fact that the supply of that particular good meets the demand for that particular good. Of course, Bored Ape Yacht Club NFTs are quite different from most commodities, so a closer look at the supply-demand interaction of most commodities is not as beneficial as the interested individual would like.
For example, the supply of these NFTs is static. For most commodities, the supply is represented as a diagonal or diagonal curve from the bottom left to the top right of the Cartesian graph. In this graph, the x-axis represents the quantity of goods and the y-axis represents the price. good. This is most often more commodities, whether existing producers are producing more, new producers are producing more, or a combination of both. Is produced at a higher price. However, the supply of these NFTs is static, as they are 10,000 to 10,000 or less. Moreover, boring apes are not substitutable, so their numbers may not be adequate to look up. The small differences from Bored Ape to Bored Ape may seem pointless to uninterested individuals, but due to the wide price range of these NFTs, these small differences are for those who care about them. You can see that it is a very meaningful difference. The majority of consumers are the latter, not the former, so they are very relevant. Therefore, it may be more useful to consider the supply of the most valuable Bored Ape Yacht Club NFT to be 1 and 1 or less. Most of these NFTs can replace each other, but the price paid makes it clear that the most valuable of them are not very so.
To give another example, it wouldn’t be surprising if these NFTs were played according to a set of rules similar to those applied to more luxurious types of merchandise. Consider the serial example. Generally speaking, even if people really like grain and their income soars, there are serious limits on the amount of grain they buy for themselves. After all, there are serious limits on the amount of grain they can eat on their own. So it doesn’t make sense to buy more grain. But as income increases, it can change some other things they eat and drink. For example, they may eat out at an expensive restaurant. Similarly, they may buy a bottle of wine or more expensive wine. One of the most interesting things about the more luxurious variety of products is that it’s not just the quality of the products themselves. Instead, such purchases also have a very realistic and very powerful element of fame. This factor is so influential that certain luxury becomes more affordable, as the increase in buyers brought about by lower prices is not enough to compensate for the lower buyers brought about by lower fame. In that case, sales may actually decrease. There are many unclear points about these NFTs. But there is no doubt that Prestige plays a very realistic role in the whole. Still, it’s no exaggeration to say that people are paying a lot of money for boring Ape Yacht Club NFTs as people are interested in boring Ape Yacht Club NFTs at the end of the day. Why they are so interested is a much harder question to answer. Something that does not prevent people from coming up with various potential explanations.
Why are you so interested in the boring Ape Yacht Club NFT?
It seems reasonable to speculate that some people are trying to take advantage of these interests in NFTs. After all, if they manage to buy cheap and sell high, they can make a fair amount of money. Very attractive to most people there. This kind of behavior occurs in almost all cases of speculative value, so it would be strange if it wasn’t also a factor in these NFTs. However, these people may or may not have a noticeable impact on the prices of these NFTs, but in the absence of something they would not be drawn in and cannot take full responsibility. I am attracted to.
As for what it is, it is interesting to note that some people are pointing out the identities that are formed around these NFTs as well as other NFTs. Basically, these people have a common belief that NFTs haven’t arrived yet, but clearly represent a future in the process. So if they get involved at this point, they can benefit a lot by becoming early adopters rather than late adopters. Economic benefits are one aspect. But economic benefits are only one aspect, as people are not 100% rational business people who are driven to maximize wealth in the wisest way possible. Instead, there is a lot of fame to be gained from being at the forefront of things, so a lot of social capital is involved as well. In the modern world, both finance and technology are highly valued. Since NFTs touch on both finance and technology, it’s not difficult to understand why NFTs are so popular with important people. Of course, there is an NFT, then an NFT. Bored Ape Yacht Club NFTs are almost at the top of the list, as evidenced by the widespread coverage of even mainstream news sources. So, for those who want to establish themselves as an elite member of the NFT community, buying one of these NFTs is an easy and easy way for them to do it.
Going forward, the NFT community is underpinned by a broad interest in the Metaverse. Interested individuals may be most familiar with this concept, as Facebook has decided to rebrand itself as a meta. But Facebook didn’t come up with the concept, but instead took advantage of its enthusiasm. Similarly, the NFT community is one of the many groups of people brought about by this, but in their case they appear to be more honest than cynical. When you think about it, their investment may not make much sense in the real world for the time being, but as the virtual worlds that should make up the Metaverse are built, their investment becomes more and more meaningful. increase. Moreover, even if their investment goes wrong, they will at least have the social capital to be some of the people who first recognized the potential of the Metaverse before betting on the Metaverse. Something that makes them a pioneer in a wonderful new world.
Further considerations
It’s very interesting to see what the Bored ApeYachtClub collection and other NFTs will look like in the future. People have predicted the spread of virtual worlds for years. So far, these predictions haven’t worked. But with more and more technology and everything you need, it’s time to get ready. Of course, even if virtual worlds work, we still don’t know how popular they are. People spend a great deal of time on social media and other digital transformations. Still, it does not necessarily mean that it will be completely carried over to the virtual counterpart. Moreover, even if the Metaverse is really the future, it does not necessarily mean the same for NFTs. Still, as long as people believe in NFTs, NFTs will continue to be valuable. Because it’s all the value so far.
