We make fun of NFTs. And the people who buy NFTs are considered merely to be memes by the majority of us at this point. however, looking at NFTs from the business perspective does make lot of sense. NFTs are profitable, that is why many companies who have sold only physical goods from the dawn of their time are now doing heavy investment in selling virtual goods. Some of the luxury brands who are expanding their business to metaverse include Balenciaga, Gucci and Nike (Is Nike luxury? yes come visit the third world)
Here is a fun fact: Some consumers are willing to pay much more for a virtual commodity than the same physical counterpart. Expensive game skins...people buy them. Even some ugly looking NFTs are being sold for millions! matter of the fact is people are willing to pay higher prices for virtual commodities, and it attracts investment from companies.
After price, lets see the cost of producing virtual commodities. The cost of producing a game skin or some NFT of monkey's picture is far less than producing a physical commodity. Now show me one business which doesn't like to reduce its cost of producing goods.
Speaking of cost, there is a big cost which takes a big chunk of profit from our poor multimillionaire companies i.e cost of keeping the inventory. In order to store physical commodity business must build warehouse, hire people, spend money and time on security etc. now how much money do you have spend to store virtual goods? compared to physical goods? NUFFIN!
In conclusion, Price of virtual commodities is high, cost is low and profit is insane. Virtual commodity is sugar, business is ant, and the profit is sweetness.
Right now we(majority) make fun of buying virtual commodities/NFTs but you know what....businesses don't care about us.(majority) They don't care about your dislike of NFTs. They care about the people who buy them. See this if there are 1000 men on internet. (there are no real girls on internet only Russian bots) Out of these 1000 men, 950 hate buying virtual goods and only 50 men like to buy them. The thing to take in consideration here is that these 50 men (minority) are the molders of the internet not the 950 men (majority).
As we know in market we vote by our money. In the example above we see that minority votes for the future of internet. Majority which hates to buy virtual goods does not vote. They don't have the voter id card. They don't participate in decision making.
Considering the amount of profit in selling virtual goods. Companies will shape the internet in such a way to facilitate the market for virtual goods/ NFTs. Internet is no more just a market place, its an whole economy.
Are domain names virtual goods? Oh my....I became the same thing i swore to destroy.