Survey Reveals Utility and Long-Term Profit as Top Reasons for Purchasing NFTs
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
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
In the world of cryptocurrency, non-fungible tokens (NFTs) have become a hot topic in recent years. These unique digital assets are being sold for millions of dollars, and are being used for everything from art auctions to virtual real estate transactions. But what motivates people to purchase NFTs? According to a survey conducted by CoinGecko, utility and long-term profit are the top reasons for purchasing NFTs.
Key Findings from the CoinGecko Survey
The CoinGecko survey, which was conducted in April 2021, gathered responses from over 1,400 participants from around the world. The survey asked participants to rank a list of 11 reasons for purchasing NFTs in order of importance.
The survey found that over 77% of respondents stated that using NFT for its “expected function” (i.e., practical and functional use) has a certain degree of importance among the 11 reasons for purchasing NFT. This suggests that people are considering the practicality provided by the NFT series and the benefits of holding tokens before making a purchase.
Additionally, the survey found that long-term profit was also a key motivation for purchasing NFTs. Over 70% of respondents listed “potential for long-term profit” as an important factor in their decision to buy an NFT.
However, not all respondents felt the same way. 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.
The Importance of Utility and Long-Term Profit in NFT Purchases
The fact that utility and long-term profit were ranked as the top reasons for purchasing NFTs is significant. It suggests that people are not simply buying NFTs as a speculative investment, but are instead looking for practical uses for these digital assets.
One potential use for NFTs is in the world of gaming. In recent years, blockchain-based games have become increasingly popular, and NFTs can be used to represent in-game items or characters. This creates a whole new market for gamers and collectors alike.
Another potential use for NFTs is in the art world. Many of the most high-profile NFT sales have been for digital artworks, which can utilize the unique properties of NFTs to prove authenticity and ownership.
Overall, the CoinGecko survey suggests that there is a growing demand for practical, functional use cases for NFTs. While the speculative value of these digital assets cannot be ignored, there are also many exciting possibilities for their use in the real world.
Conclusion
The CoinGecko survey provides valuable insights into the motivations behind NFT purchases. While the survey found that long-term profit is a key factor for many buyers, the fact that utility and practical use were ranked as the top reasons for purchasing NFTs suggests that there is a growing demand for real-world uses for these digital assets.
As the NFT market continues to grow and evolve, it will be interesting to see how these digital assets are used and valued in the years to come.
FAQs
Q: What is an NFT?
A: An NFT, or a non-fungible token, is a unique digital asset that is stored on a blockchain. Each NFT is one-of-a-kind, and can be used to represent everything from digital art to virtual real estate.
Q: What are some potential uses for NFTs?
A: NFTs can be used in a variety of ways, including in gaming, art auctions, and virtual real estate transactions. They are also being explored as a way to represent ownership of physical assets, such as real estate or fine art.
Q: How is the value of an NFT determined?
A: The value of an NFT is determined by a combination of factors, including the uniqueness of the asset, its historical context, and the perceived value of the underlying asset (e.g., a digital artwork). Additionally, market demand and speculation can also play a role in determining the value of an NFT.
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