How to Value an NFT (or any Collectible) - The Contrarian Mindset

A lot of the conversation around NFT's has been around art, but that is just one use case. I find the use of NFT's as a form of collectable much more interesting. This article is an interesting read on determining value for a collectible.

In all my years of helping to sell collectibles, I came to the conclusion that collectibles derive value from a set of three qualities: brand, scarcity, and market. I believe it is those same qualities of brand, scarcity, and market that determine the value of physical collectibles that will also govern the value of NFTs. The following is an exploration of what I think makes any collectible valuable and a framework for how to value collectibles, including NFTs.

His conclusion is positive on the value of NFT's.

I think NFTs are here to stay, and I think that they have application well beyond speculative art. NFTs could offer a powerful mechanism for creators to monetize music, videos, and writing as a new type of DRM. They may even build in a future cash flow mechanism that allows owners to profit and would allow investors to value them more like securities. Royalties are already a robust industry for music. NFTs could democratize that across many other industries.

Fundamentally they are a tool or system that allows for proof of provenance. That capability can be used in many ways.