NFTs
How to Buy NFTs – Forbes Advisor Canada
Like many things in this world, the value of an NFT is in the eye of the beholder.
This doesn’t mean that NFTs can’t fetch a high price. For example, in addition to the $126.7 million CAD (91.8 million USD) price tag for “The Merge,” Beeple’s “Everydays: The First 5000 Days” sold at auction for $95.9 million CAD (69.5 million USD).
“The value extends from authentication and exclusivity,” says Ozair.
But not all NFTs come with a hefty price tag. Some are valued at less than a dollar. According to data from CryptoSlam, the average price among the $893 million CAD ($647 million USD) in NFT sales in July 2022 was $159.03 CAD ($115.15 USD).
Just like with a painting, the market itself will decide the final value. Of course, not every painting sells for $1 million, but some people believe that some paintings could be worth that much. So they are willing to pay that price.
Of course, NFTs don’t have to be art. There are also sports NFTs, which include digital variations of trading cards and highlight reels. For example, a photo of LeBron James taken by Kimani Okearah sold for $29.8 million CAD ($21.6 million USD). The blockchain-based baseball game MLB Champions sold for $29.4 million CAD ($21.3 million USD), while an autographed card of World Boxing Council (WBC) middleweight champion Jermall Charlo sold for $26.3 million CAD ($19.1 million USD).
Virtual land, which is space in the metaverse, can also be sold as an NFT. In the metaverse, however, NFTs can also include accessories for users’ virtual avatars, such as images and clothing, says Jerry Eitel, partner emeritus and head of metaverse at global accounting firm Prager Metis.
As the world becomes increasingly digitized, NFTs could even represent a physical property deed, a user’s medical records, proof of ownership, or proof of attendance. These things may not be as easily transferable from one owner to another, but each of them can occupy its own unique space on a blockchain.
Of course, buying an NFT is not like buying a stock or putting money into an FDIC-protected account.
There is no guarantee that the price of an NFT will go up. This means that investors need to take the time to understand what they are buying when they purchase an NFT and consider what they believe the value of that NFT will be.