nisiprius wrote: ↑Sat Mar 20, 2021 6:43 am
decapod10 wrote: ↑Fri Mar 19, 2021 8:46 pm
...They definitely sell, at least for cards that are relatively high in number will sell pretty quickly if you go a little bit lower than the lowest ask...
Do you own any? If so, if you wouldn't mind: what is your personal motivation for buying them?
a) To make money... and you have confidence that even if it is a bubble, it is at a stage where your instincts and timing are good enough to insure that you will be one of the people who ends up ahead?
b) Pride of having your name displayed on the NBA Top Shot website, as the owner of a well-curated collection of wonderful, rare "moments?"
If not, do you have any insight as to the motivations of the people who have bought them?
That's a good question. I think there is some combination of everything, and the motiviations of "collecting" and "hoping to make money" are very intertwined I think. For me personally, I am a bit of a physical card collector too (I collect Magic the Gathering cards). I like MTG cards for what they are, and I don't buy them in order to make money or sell necessarily. On the other hand, if I thought that they were worthless, I probably wouldn't collect them either. Collectibles need both aspects for most people. Part of owning a collectible is about the item itself, part of owning a collectible is that feeling that you own something valuable. The fact that other people are willing to pay me money for that collectible is a more tangible way of knowing that I have something that people want, whether or not I actually intend to sell it. I own a few valuable MTG cards and I like looking up the price and seeing the value go up. On the other hand, I really have no intention of ever selling some of them (though willing to sell others).
For NFTs, I think it is largely the same. It's some combination of
1) liking the art/collectible
2) hoping that they will make you money/increase in value
3) showing off to people that you have something rare/valuable - what we call "flexing" your rare items on the interwebz
For NFTs specifically over physical collectibles, I think #3 becomes particularly relevant because of the dominance of online presence/social media. I think like 3 people have ever seen my expensive MTG cards, but thousand/millions could see my cryptopunk (well not me specifically, but someone who cares about that kind of thing). You can see more and more people bragging about their Top Shot collections on Twitter, or changing their Avatar on the twitter account to a cryptopunk. Well, couldn't someone just copy and paste any random picture of a cryptopunk that they don't own? Yes, they could, but for someone who cares about their online reputation or clout, this would be suicide. It is relatively easy to prove who owns that cryptopunk. This sounds ridiculous that people care about "online clout", and it is ridiculous to a large extent, but there doesn't seem to be any indication that this will disappear. It's much easier to fake going on fancy vacations or pretend owning a Ferrari than owning a "fake" cryptopunk.
The trick is that you really want to get into NFTs that are mostly #1 (and by extension #3) than #2. There are certainly tons of projects that are deemed "hot potatoes" by the NFT community. They buy them purely to try to pawn them off on someone else for a higher price than they bought them. People buy them for cheap, hype them up massively and try to dump them off on other people for gain. Or "cash grabs", which are low effort NFTs from Lindsey Lohan or whatever just trying to make a quick buck. If you are a collector, you probably want to try to avoid things like this.
Other projects are seen as more "legit", where people are buying more because they like the project rather than trying to flip them for money. The general view is Cryptopunks would fall in this category. Artists like Beeple, Hacaktao, Fewocious, Mad Dog Jones, etc. who tend to have more "street cred" in the cryptoart world.
Of course, the people/community can end up being wrong on projects, and people will have differing opinions. Some "cash grabs" end up becoming "good". Some "legit" projects end up doing poorly. And of course, there is a non-zero chance that the entire NFT industry could go down in flames. So it's extremely high risk speculation, and I think people are thinking about jumping in should have alternative reasons for doing so. Like if they genuinely enjoy the NFTs, or enjoy learning about/navigating the Ethereum ecosystem, etc.
I hope that makes sense, feel free to ask if you need any clarifications
Edit to add: Another thing I thought of is that people tend to cluster around certain NFT projects, and if you own one then you gain entrance into their community. Again using Cryptopunks for an example, people who own cryptopunks tend to lend more credence to what other cryptopunk owners are saying (or even non-cryptopunk owners tend to value cryptopunk owner input). Sometimes people run projects only for Cryptopunk owners. On the Discord chat room, if you own a cryptopunk, your name turns green and you become a "green name", which tends to hold some status with it. Owning one is almost like buying a membership to a country club or a fraternity. There are not many projects that have this elite status, but as of today, cryptopunks are one of them.