Even if NFT Demand Returns, It’s Best to Collect What You Love

People’s genuine interest in a collectible is always a better indicator of what’s worth the price tag and what isn’t.

The acronym NFT floats around in balloons above a smartphone held by a woman.
(Image credit: Getty Images)

Promising returns in the first few weeks of the new year have NFT watchers hoping for a comeback. But with demand from its 2021 peak largely evaporated, collectors wondering if they should get in on the NFT trend would do well to remember a key buying principle: Collectors are led astray when driven by speculation. Stick with what you love.

NFTs (or non-fungible tokens) exploded onto the scene in 2021, in a moment where internet investors began flexing their buying power in new ways. The crypto market was reaching new highs, while meme stock traders temporarily broke Wall Street with their short squeeze tactics. NFTs were both a side effect and a symptom of the time, wherein internet buzz was enough to generate significant demand.

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Thomas Ruggie, ChFC®, CFP®
Founder and CEO, Destiny Family Office

Tom Ruggie, ChFC®, CFP®, founded Destiny Family Office, a Destiny Wealth Partners firm, to help clients manage the increasing complexities inherent in their business and personal lives. He has identified three key areas where his firm can make a significant difference: presenting a compelling sphere of investments, including alternative, direct and co-investment opportunities; creating a special emphasis on high-end collectors whose collections signify significant alternative investments; and strengthening the firm’s private trust capabilities. Ruggie has become one of the most respected financial advisers in the industry, receiving national recognition and rankings including: 11X Barron’s Top 1200 Financial Advisors, 6X Forbes/Shook Research Best-In-State Wealth Advisors (2023: 5th in North FL), 12X Financial Advisor Top RIA Firms and Forbes Finance Council 2016-2023.