Why NFT Prices Are Expensive, What Factors Determine?

KOMPAS.com – Aset non-fungible token (NFT) is being loved by netizens, after NFT selfie photos belonging to the Ghozali Everyday account, sold up to billions of rupiah.

Previously, a 12-year-old from London, Benjamin Ahmed, who created the digital artwork “Weird Whales”, a pixelated whale emoji, sold for £290,000 as a Non-Fungible Token (NFT). .

The viral video “Charlie Bit My Finger” which was popular in the early 2000s, was withdrawn from the public as of May 23 after selling for US$ 760,999 or around Rp. 10.9 billion (US dollar exchange rate of Rp. 14,300) in NFT form.

Twitter boss Jack Dorsey also auctioned off his first tweet with NFT, and it sold up to $2.5 million.

Also read: How Does NFT Work?

NFT can be said to be like a physical copyright certificate that can guarantee the authenticity of a work of art, the difference is that NFT is a digital certificate. From this point of how NFT works, it’s possible to roughly imagine why harga NFT can soar.

Why is the price of NFT so high?

Why is the price of NFT so high, and what factors make it expensive? Quoted by KompasTekno from the Alan Turing Institute, Selaa (18/1/2022), the most basic reason is that there is no control and domination in the NFT trading scheme.

In other words, no dominant actor can control the price in NFT. Researchers at the Alan Turing Institute point out that there is enormous heterogeneity in the NFT trade.

Many digital NFT artworks are available but none of them master the determination of value or price.

The value or price of the NFT is entirely made between the seller and the buyer and is not determined by a third party, as in conventional trade which requires the intervention of the government or large corporations.

Also read: 12-Year-Old Child Sells NFT Whale Emoji, Sells IDR 5 Billion

This kind of trade in goods scheme may be similar to an art trade scheme. The value of a painting results from the complex relationship between the seller and the buyer.

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