As someone who’s explored both ERC-20 tokens and NFTs, I’ve noticed an interesting difference in my own mindset:
When I buy ERC-20 tokens, I almost always expect some kind of return or benefit. But when it comes to NFTs-especially if they’re not expensive-I’m okay even if there’s no tangible reward.
Why is that? Let me share my thoughts.
Table of Contents
The Investment Mindset Behind ERC-20 Tokens
ERC-20 tokens are the backbone of most cryptocurrencies on the Ethereum blockchain. They’re fungible, which means each token is identical and interchangeable with any other. For me, this makes them feel a lot like stocks or points-assets that you buy with the hope that they’ll go up in value, or that you’ll get some kind of reward from holding them.
Whenever I purchase ERC-20 tokens, I can’t help but think about potential returns. Maybe the price will rise, maybe I’ll earn staking rewards, or maybe I’ll get some special utility within a platform. Either way, my motivation is usually tied to the idea that I’ll get something back for my investment.
NFTs: Ownership, Experience, and Support
NFTs (non-fungible tokens), on the other hand, are completely different. Each one is unique, and they’re often used for digital art, collectibles, game items, or even as membership passes. When I buy an NFT, it feels less like an investment and more like buying a piece of art, supporting a creator, or joining a community.
For me, the joy of owning an NFT often comes from the experience itself-owning something unique, showing support for a project I like, or simply enjoying the art. If the NFT is affordable, I don’t care much if I never get a financial return. The value is in the ownership and the connection I feel, not in the hope of making money.
That being said, I am totally fine with flipping it. In fact, I find it fun.
How My Expectations Differ
Here’s a quick comparison of how I approach each:
| Aspect | ERC-20 Tokens | NFTs |
|---|---|---|
| Nature | Fungible, interchangeable units | Unique, one-of-a-kind assets |
| My motivation | Investment, financial return | Collection, support, experience |
| Expected return | Yes, I expect a return | Not really, especially if cheap |
| Source of value | Market price, liquidity | Scarcity, uniqueness, ownership |
| Price sensitivity | Can be high | Low, if not too expensive |
Why This Difference Matters
I think this difference in mindset comes down to how each asset is designed and what they represent. ERC-20 tokens are built for trading, investing, and utility-they invite you to think about gains and losses. NFTs, on the other hand, are about personal value, ownership, and participation. They’re more like digital collectibles or art, where the experience itself is often the reward.
So, if you ever find yourself wondering why you expect returns from some crypto assets but not others, it might be worth thinking about what motivates you to buy them in the first place. For me, ERC-20 tokens are investments, while NFTs are experiences-and that makes all the difference.
What about you? Do you feel the same way, or do you have a different perspective? Let me know in the comments!
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