Are NFTs Worth It?
NFTs have exploded onto the art scene, turning from a simple concept of legitimizing unconventional digital art into a multi-billion dollar business!
There's so much to unravel if you're new to it all - learning how to make an NFT, why they're worth something, and how to pick the right marketplaces.
In this guide, we’ll explain all the basics, so you’ll be good to go.
What is an NFT?
A non-fungible token (NFT) is a digital asset traded with cryptocurrency. The phrase 'non-fungible' simply means that the asset is 100% original and unique!
The layers of cryptology underpinning the NFT market are complex, but understanding how to make and sell them is anything but.
The Value of NFTs
It’s not uncommon now to hear about some NFT collections being sold for thousands, if not millions of dollars, but how do NFTs gain value?
Like any normal art collection, value derives from demand - a bit like rare playing cards that can sell for eye-watering amounts.
NFTs are worth something when they're scarce, and they capture the interest of customers who are willing to part with crypto to buy ownership rights (and have that ownership recorded in the blockchain).
How Much Profit Can You Make From Selling NFTs?
Let's look at the figures involved - after all, you want a tidy profit if you're putting your creative mind to good use!
VQGAN+CLIP, which is what we use here at Nightcafe, is a great option for newbies and savvy creators looking to make NFTs. You can generate incredible digital artwork completely free, up to five graphics per day.
It's equipped with an awesome text-to-art generator, so it is accessible to anybody and everybody who wants to throw their hat in the ring.
Some platforms, such as Ethereum, will charge you to mint an NFT. The average cost is about $93 AUD - that's about a middle-of-the-range price.
Once your NFT has been minted and it’s been listed on an NFT marketplace, the profit you could make from it will all depend on how the market values your art! Many NFTs never get off the ground, but others have sold for thousands, and even millions!
Are NFTs Worth it?
Back to the original question, the reality is that it's down to your creativity, knowledge of crypto fundamentals, and the amount of effort you're willing to contribute.
It is possible to profit from an NFT without touching one - trading like a stock - but the market is so new, it's tricky to predict how risky that sort of investment might be.
Some of the highest-profile NFT sales have involved crazy sums:
- Chris Torres built an NFT to depict his viral Nyan Cat gif. His payment came in ETH worth the equivalent of $785,000 AUD.
- Jack Dorsey, Twitter CEO, sold his first tweet as an NFT, netting an impressive $3.3 million AUD - he donated the proceeds to charity!
- The biggest sale occurred when a designer sold a huge JPEG file with 5,000 unique graphics at Christie's. The sale price? $93 million AUD (the seller wasn't super famous either!).
The chances of landing on one of these record-breaking unicorn sales might be less likely, but NFTs can be a very worthwhile endeavour.
Just make sure you choose your marketplace carefully, and you could be onto a tidy side hustle.