There are some paintings worth millions of dollars while others are worth less than a penny. Why? A combination of factors, but the most important one is this:
We are human beings—social creatures who are controlled by subjective perception.
Some NFTs are ridiculously expensive because of the story behind them, either experienced, fabricated, or sold. Sometimes a thing is valuable because of:
Who made it
When it was made
What people think about it
The circumstances surrounding its early life
And a lot more. To define all the reasons is beyond the scope of this article.
It’s enough to know that they are expensive because people are willing to pay that much for it based on their subjective perception, even though that perception is heavily influenced by the world around them, particularly the media. Some people buy because of prestige, others because of speculation.
Whatever the reason for the outrageous prices, that is not all NFTs are about. Also, an artist doesn’t need collectors to buy their NFTs at such high prices for them to make a living with NFTs. Many artists on Singular have made a lot of money by selling many NFTs for reasonable prices.