I was actually wondering the use case for NFT art for a few days. My confusion was, it's an image that can just be copied and saved. So why would anyone pay fo it or what if someone buys one copy and starts selling multiple copied versions of the same image. You however answered part of this here :
If a particular photo increases in value, the one with the key will be able to cash in. Everyone else who tries will be known to be peddling a copy
The question still remains, what if someone just wants a "free" copy for say, for example, as their desktop wallpaper. They don't need to actually buy it, they can just download a pirated copy.
To me the NFTs that made perfect sense are the Splinterlands cards or DCity cards. These have usability and if someone wants to use it, they have to buy it.
Am I missing more of the whole NFT Art concept?
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It is like any copy in the art world. A print is a lot less than the original. Why? Because it is not the original.
With digital art, it is a collectible so one wants to have something authentic. If a photo is just copied, then it has no value. Sure someone can use it as a screen saver but if the value of that piece doubles, the individual gets no benefit.
You mention cards from games, people acquire them without playing the game but for speculation purposes. I can just copy a splinterlands card and say I have one. Of course, it has no use in the game and has no value since, if I try to go sell it, I dont have the key.
Same premise with collectibles. Now what drives people to want something is all over the board. Personally, I dont think I would spend money on a photo of Shatner's acting memorabilia but I am sure there are hundreds of thousands who would. Of course, I never understood the Cabbage Patch craze but they went for a boatload of money.
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In meatspace, you can't ever really be sure how many prints have been made, though. I have 1/5 of one image, and 8/30 of another. They're numbered, and that's all on chain; so I can know how scarce they are.
Of course, the prints could be tokenized on chain too, reducing the vulnerability you brought up.
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