Tacky

People only use NFTs to Show Off their Wealth

Even if that were the only reason – which, as stated above, I don’t think is true – so what? That’s a bit like saying “people only acquire money to spend it”.

Human beings are evolutionarily wired to seek social status. It’s highly correlated with a host of benefits including better health, more resources, increased happiness, higher social approval, greater influence and better access to mates.

Indeed, some researchers believe that over 90% of our behaviors are intended to show off our status. It’s why we buy Rolexes, Lamborghinis, Picassos, Louboutins and Birkin Bags; it’s the reason that fewer than 5% of charitable donations are anonymous; it’s probably even why we built the Pyramids!

The Global Market for Luxury Goods Exceeds $1 Trillion

Source: Bain & Co.

What separates NFTs from other status symbols is the fact that they are effectively the first “digital” status symbol. As such, they have a much broader reach than any necklace, dress, coat, watch, handbag, pair of shoes, car, house or physical piece of art could ever have.

And considering that watches are falling out of favor, ridesharing may reduce car ownership (especially with autonomous cars) and home ownership may decline with the rise of remote work and the digital nomad lifestyle, your Facebook, Twitter or Instagram profile pic may soon become your most valuable piece of real estate.

So yes, I’ll concede that many people buy NFTs to show off their wealth. And guess what, the fact that millions of people can see your Cryptopunk or Bored Ape means that it’s probably the best damn way to show status that’s ever been invented!