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Why Some People Make Millions With NFTs and Others Don’t
NFTs are typically hosted on a website, which could disappear, making the photo disappear and thus… you’re left with code and an error page. No more NFT. That’s only PART of the reason NFTs are so risky.
We give NFTs their value. For example, you can buy your own NFTs. Basically, each NFT has its own “sales history,” which is exactly how it sounds: whenever it’s sold, it shows up on this sales history. If it keeps selling, it looks like it’s in high demand.
This creates a precedent of sales, showing people that folks are, in fact, buying and selling NFTs. THAT is what creates value.
The reality is, you’re just buying it from yourself. You’re basically “shuffling your money around.”
Here are the most popular NFTs: BAYC, or “Bored Ape Yacht Club.” These images have become synonymous with NFTs. If you see a meme making fun of NFTs, you’re probably looking at one of these monkeys.
Just one of those Bored Apes sold for nearly $3.5 million.
How and why are NFTs so expensive?
Well, obviously there’s the rarity of the item… only a certain amount of them are made. For example, there are only 10,000 bored apes. Not to mention, each one comes with a certain combination of features and details. Some of these…