The Value of Owning Something Unique Like Historical NFTs
The Mona Lisa is said to be worth at least $850 million, with some estimates as high as several billion. Why?
First, because it’s a masterpiece. Second, because it’s unique. Sure, you could replicate it, but any art collector would know right away.
This tells us something: There’s immense value in uniqueness.
This is why some Bored Ape Yacht Club NFTs are selling for 40+ ETH on OpenSea (as of November, 2021). The collection is rare, and each NFT has a unique quality you can’t find anywhere else. Plus, they’re quite cool.
That brings us to why we started NFThistory. From the building of the Pyramids to the day you were born, world history is full of unique events — events that won’t happen again. We built NFThistory to preserve those moments, and we believe this will create tremendous value.
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But first, what is value?
Value is hard to define without slipping into using the term once again. Even Wiktionary, in its first definition, says value is “the quality (positive or negative) that renders something desirable or valuable.”
The second definition says value is the degree of importance given to something.
It’s true that value is also one of those theory-laden terms. One simply doesn’t divorce it from some background of assumptions or presuppositions when using it.
Moreover, the most fundamental debate to be had about value is whether value exists independently from the one doing the act of evaluation. In other words, is value subjective or objective?
For instance, most would say the value of art is subjective. Even the old Romans expressed it in the famous maxim, De gustibus non disputandum est, which literally means “In matters of tastes, there can be no disputes” (or to each his own).
On the other hand, the value of art, or anything else for that matter, could come from any one of the following, depending on your school of thought:
- The amount of labor needed to produce it.
- The utility of the artwork (or good or service).
- The personal value of the artwork (e.g., parents see their child’s artwork as irreplaceable)
- Scarcity and uniqueness of the artwork, product or service (more on this below).
When it comes to NFTs, art is the most common type of creation. How the value of NFTs is determined remains tricky, and there is a lot of speculation going on right now. But traditional economic principles still apply.
Supply and demand with NFTs
A product’s market value is a function of supply and demand. As economists state, when demand exceeds supply, prices tend to rise; when supply exceeds demand, prices tend to drop.
For example, if you go on an NFT marketplace, like OpenSea, and see a collection of 10,000 NFTs of images that look to be mass-produced with little creativity involved, chances are it’s not auctioning for that high of a price. There’s simply not enough demand and too much supply.
However, value is not always a function of supply and demand. Other factors influence value.
Some unique works of art may have relatively small demand, as only a handful people in the world really want them, but are of high market value. A few wealthy individuals can bid up the price of an artwork to millions of dollars.
Similarly, as previously mentioned, a child’s drawing may hold great value to the parents of that child, despite the fact that nobody else would pay a lot for it. I’s a piece of art their child created — and that can’t be duplicated.
This brings us to an important point: Uniqueness plays a crucial role in value. At NFThistory, we’re proving this idea holds true with historical NFTs.
The uniqueness of moments in time
Think of all the sets of circumstances that must occur to make an event happen in your life: your birth, graduating from university, meeting the love of your life, etc.
These are unique and unrepeatable sets of circumstances. They make that moment 100% unique.
Many historic events are very important to us. Some may matter more to you personally than others, such as:
- the founding of one’s country
- the arrival of one’s ancestors in their hometown
- the fall of the Berlin Wall
- the publishing of the Crypto Anarchist Manifesto
These events are unique, and they hold value due to their importance and uniqueness. Not only are they unique, but they’re also not mutually interchangeable. You can’t switch your wedding date with your birthdate (that doesn’t make sense).
So, historical events are unique and non-fungible, preserving history as a non-fungible token makes perfect sense. Since moments in time can’t be replaced, the person who owns a historical NFT potentially holds something of tremendous value. Imagine having the only NFT of one of the key dates in world history, like:
- The birth of Buddha, founder of one of the world’s major religions
- The day Isaac Newton discovered gravity
- The end of World War I
Historical NFTs go beyond sentimental value too, and can be somewhat utilitarian. After all, if you own an important date in history, you own something unique — something highly valuable to lots of people. And you’re responsible for holding or preserving that historical NFT.
NFThistory’s uniqueness in the NFT market
The NFT market is booming, with sales reaching $10.7 billion in the third quarter of 2021. However, visual art has dominated the NFT landscape. It’s now time for more use cases.
This makes NFThistory and the concept of owning historic dates unique within the NFT market. And if uniqueness has correlation with market value, one can easily see the potential of our endeavor.
At NFThistory, we’re bringing this idea of historical NFTs mainstream. We want to empower everyone to own a piece of history. In doing so, everyone can have something unique and valuable in their hands (or digital wallet).
Interested in owning your piece of history? Join the NFThistory community by clicking any of the links below: