Why Utility and Long-Term Profit Reign Supreme for NFT Purchases

According to a survey conducted by CoinGecko, utility and long-term profit have been listed as the top reasons for purchasing NFTs. The report found that the majority of people are considering the practicality provided by the NFT series and the benefits of holding tokens before purchasing. Over 77% of respondents stated that using NFT for its “expected function” has a certain degree of importance among the 11 listed reasons for purchasing NFT. However, 15.7% of people answered that they have a “neutral attitude” towards utility, while 6.7% believe that it is “not important” in the decision-making process before purchasing NFTs.

Survey: 77% of respondents purchase NFTs for practicality and long-term profit

Introduction

The world of blockchain and digital artwork has recently been upended by the advent of non-fungible tokens (NFTs). These unique tokens represent ownership of one-of-a-kind digital art and other assets, and have quickly gained popularity both among crypto enthusiasts and artists alike. However, a recent survey by CoinGecko suggests that the purchasing decisions of NFT buyers are heavily influenced by their utilitarian and financial motives.

The Importance of Utility in NFT Purchases

CoinGecko’s survey found that a whopping 77% of NFT buyers rated the practicality of owning NFTs as important in their purchasing decision. This indicates that a significant number of buyers are interested in using NFTs for more than just their inherent value as collectors’ items.
Some of the reasons cited by respondents for valuing utility include using NFTs as a form of investment, as well as utilizing the unique features of NFTs such as traceability and proof of ownership. In fact, 65% of respondents stated that the rarity and uniqueness of NFTs was an important factor in their purchase decision, further underscoring the importance of utility.

Long-Term Profit Potential

Besides utility, the survey also highlights the importance of long-term profit potential in NFT purchases. Almost 60% of respondents cited this as a factor in their decision to buy NFTs.
This is perhaps unsurprising given the highly speculative nature of the cryptocurrency market. However, the survey also suggests that many NFT buyers are taking a sophisticated approach to investing in NFTs, rather than simply trying to cash in on a trend.

Neutral Attitudes to Utility

Of course, not all NFT buyers prioritize utility and long-term profit potential in their purchasing decision. 15.7% of respondents had a “neutral attitude” towards utility, indicating that they may consider other factors such as aesthetics or social status when deciding to purchase an NFT. Another 6.7% stated that utility was “not important” in their purchasing decision.

Conclusion

In conclusion, CoinGecko’s survey suggests that utility and long-term profit potential are key drivers of NFT purchases. While not all buyers place equal emphasis on practicality, the majority of respondents consider the expected function of NFTs to be important in their decision-making process.

FAQs

1. How are NFTs different from cryptocurrencies?
NFTs represent ownership of unique digital assets, while cryptocurrencies are fungible digital assets that can be exchanged for other assets.
2. Can NFTs be used for other purposes besides collecting art?
Yes, NFTs can be used to represent ownership of a wide variety of digital assets, including music, videos, and even virtual real estate.
3. Are NFTs a good investment?
Like any investment, investing in NFTs carries risks and rewards. However, some investors believe that the rarity and uniqueness of NFTs can make them a valuable asset over time.
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