The NFT Handbook

CHAPTER 3Why NFTs Have Value

We’ve come to associate content on the Internet as “free.” In fact, under the ad‐based Internet model, we expect all content to be free. Tweets, memes, videos, articles—you name it—if it’s not free, then the vast majority of us are just clicking away from it. For this reason, it’s hard for most people to wrap their minds around purchasing something digital, such as a non‐fungible token (NFT), which otherwise appears to be free: “Why would I want to buy something that anyone can view online, take a screen capture, and then claim ‘ownership’ of the digital result?”

The answer to this question is multifaceted, and we’ll get into the reasons why throughout this chapter. However, just as we first covered why people collect in Chapter 2, “What Are NFTs?” we’d like to address an initial principle around “value” in order to create a baseline understanding of why NFTs have value.

Why Do Collectibles Have Value?

World War II recalibrated the importance of resources. Most of us are familiar with the nationwide rationing of sugar, meat, gasoline, tires, and paper. But did you know that copper was also on the list of resources in short supply?

Copper was essential to generator and motor windings, as well as radio circuitry and ammunition. With WWII taking place on land, air, and water, there were many more machines that needed copper wiring in order to operate. Not to mention, we could never create enough ammunition to fight the war.

Domestically, though, ...