The most typical argument for why people pay so much for NFT art is also the most basic. They anticipate an increase in the value of the NFT paintings. This is a self-referential loop of sorts. The value of an NFT increases if someone pays $100,000 for it. It also increases the value of the collection's other NFTs. It's actually a fairly simple principle that also applies to conventional artwork.NFTs have the additional benefit of being a part of the blockchain's history. Owning a CryptoPunk is like owning a piece of history, as it was one of the first NFT collections issued on Ethereum.

NFTs have another benefit over traditional artwork: they make fantastic profile images. On Discord, Telegram, and Twitter, it's very typical to see bitcoin influencers with a CryptoPunk or Bored Ape profile picture. Another reason people could spend so much money on NFT art is to launder money or avoid paying taxes. People who aren't familiar with the traditional art world may be surprised to learn that priceless art is routinely utilised for money laundering and tax evasion.

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