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**Why Utility and Long-Term Profit Are Primary Factors for NFT Buyers**

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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

**Why Utility and Long-Term Profit Are Primary Factors for NFT Buyers**

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

#**Table of Contents**

I. Introduction
II. Understanding NFTs
III. Importance of Utility and Long-Term Profit
IV. CoinGecko Survey Highlights
V. Other Factors That Influence NFT Purchase
VI. Advantages of Utilizing NFTs
VII. Conclusion
VIII. FAQs

I. Introduction

In recent years, NFTs (Non-Fungible Tokens) have gained immense popularity amongst investors and collectors alike. The unique digital assets provide a unique value proposition as they cannot be replicated, making them scarce and valuable. However, what’s interesting is the reasons behind why people purchase NFTs. According to a recent survey conducted by CoinGecko, utility and long-term profit have emerged as the top reasons.

II. Understanding NFTs

NFTs, or Non-Fungible Tokens, are unique digital assets that represent ownership of a particular asset or piece of content. They are stored on a blockchain, making them immutable and tamper-proof. Unlike fungible tokens like Bitcoin or Ethereum, each NFT is one-of-a-kind and cannot be exchanged for another. Hence, the term “non-fungible.”

III. Importance of Utility and Long-Term Profit

While the inherent uniqueness of NFTs is what attracts collectors initially, utility and long-term profit have become significant factors in purchasing decisions. According to the CoinGecko survey, over 77% of respondents felt that the expected function of NFT has a level of importance in buying decisions, emphasizing the practicality of the asset. Furthermore, long-term profit motivation also plays a crucial role in determining whether individuals decide to invest in an NFT.

IV. CoinGecko Survey Highlights

The CoinGecko report surveyed 8,888 respondents globally to understand the motives behind buying NFTs. Of the 11 reasons, Utility/Expected Function and Long-Term Profit ranked the highest, with 77.4% and 52.8% of respondents selecting them, respectively. Other reasons included “Creative Expression,” “Speculation,” “Holding Birth Year,” “Support the Creator,” among others. The survey revealed that the majority of NFT buyers are relatively young, with over 50% aged between 18-34.

V. Other Factors That Influence NFT Purchase

While utility and long-term profit were the overwhelming factors influencing NFT purchase, other factors play a role too. As per the CoinGecko survey, “Creative Expression” was the third most crucial factor behind buying NFT, with 48.6% of respondents selecting it. Additionally, “Speculation” was chosen by 41.2% of respondents, suggesting that people purchase NFTs as an investment vehicle. Interestingly, “Support the Creator” received only 31.6% of the total responses, indicating that most NFT buyers are seeking investment or ownership opportunities rather than supporting creators.

VI. Advantages of Utilizing NFTs

Apart from the benefits of owning a unique digital asset, NFTs have several advantages compared to traditional assets. Firstly, since they are stored on a blockchain, NFTs are immutable and tamper-proof, making them virtually impossible to counterfeit. Additionally, NFTs provide a means of transferring ownership seamlessly, without the need for intermediaries or deed transfers. Finally, NFTs allow creators to monetize digital assets and content, allowing artists, musicians, and other creators to benefit from their creations’ value.

VII. Conclusion

The CoinGecko survey highlights that NFT buyers are looking for practicality and investment opportunities when purchasing NFTs. While the intrinsic value of owning unique digital assets remains intriguing, utility and long-term profit continue to be the primary drivers behind NFT sales.

VIII. FAQs

Q1. Are NFTs a good investment opportunity?
A1. As with any investment, there are risks associated with buying NFTs. However, since NFTs offer a unique value proposition and are becoming increasingly popular, they could turn out to be a great investment opportunity.
Q2. Can anyone create an NFT?
A2. Yes, anyone can create an NFT. However, creating an NFT requires some technical knowledge and a basic understanding of blockchain technology.
Q3. What happens if an NFT owner loses their private key?
A3. Losing your private key means you’ll lose access to your NFT permanently. Unlike traditional assets, where deed transfers or replacements are available, lost NFTs cannot be recovered. Hence, it’s crucial to secure your private key and back it up carefully.

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