Why are NFT’s selling for millions $

if you at some point saw “NFT” on your news feed and thought why the hell people are spending millions on a piece of the digital picture that anyone can save to their pc with a click, then this article will help you

1- MonaLisa effect (originality & scarcity):

let's take the Monalisa painting as an example, do you know that this painting is worth $850 million?

Now if you see in the above picture you’ll notice people taking pictures of it, does that means that they can sell that photo later for 850 million $? well yeah, you guessed it, definitely not!

the reason that Monalisa costs that much, aside from the fact that it is a decent painting, wholly original and unique. There is only 1 Monalisa and not exactly sure Leonardo da Vinci can make another one right now

Now because of that many people want to buy it while there is an extremely limited supply, what is the solution you may ask?
A very long time ago humans have invented a solution for this kind of case called bidding

Since a lot of people want a single piece of artwork, they have to bid for it. The price increases from there. so in the Monalisa, there are at least 2 reasons that drive its worth, Famous & deceased artist + original piece

Now that we understand that rarity and originality effect on a piece of art,
how this is applied to a digital piece where you can easily right-click save that while people are bidding for millions on it?

Now, Access to any copy of the original file, however, is not restricted to the buyer of the NFT. Meaning copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with impossible to forge proof of ownership that is separate from copyright.

So in fact people are paying for the blockchain record and not ultimately for the art itself

But is that the only reason why they buy these types of digital collectibles?

Answer: No.

From what we see these times most buyers buy NFT’s as an investment or a place to store wealth for potential resell later for a much higher price based on the original and unique aspect of it and the high speculation trait of crypto trading space

NFT Case study: ‘Everyday's: The First 5000 Days’ by Beeple —Sold for $69.3 Million