Art is an asset, and we usually associate with physical objects such as paintings or sculpture. So why would anyone buy crypto art that belongs permanently in cyberspace? You can never take a Non-Fungible Token (NFT) home with you unless, of course, there is a separate agreement where you can own the physical original if there is one.
Non Fungible Tokens
Usually, people buy Crypto art as an NFT. Non Fungible tokens can be shared instantly with friends on various online platforms and social media channels. The main reason is as an investment and people like it. It will last forever and cannot be stolen unless someone could hack into a wallet which is impossible unless they knew the secret passwords. As an asset that in 100 years will still be in perfect condition and will have gained credibility without being affected by wear and time is for some appealing and the ideal investment.
No extra costs
Buying crypto art needs no storage, transport costs, and insurance against damage or theft. All you need is a mobile phone and everyone except the poorest of people in third world countries are without a phone but arguably as the Bitcoin revolution starts to untangle poorer people will be able to access and by cryptocurrencies thus with bringing more awareness and enlarging the crypto art markets.
Moral and Social ethics
The exciting and rewarding idea behind crypto art is not just the personal investment it offers but the moral rights for people. Buying crypto art allows everyone to be a part of a community immediately from their own homes. There is no traveling to Paris to see the artist’s exhibition or negotiating fees with agents and art galleries. When you buy art with crypto it is directly from the artist or the art platform at a speed of light pace instantaneously anywhere in the world. This saves so much time and money and opens a world of opportunties.
The moral principles of bitcoin
People from developing countries can, if they have a phone and are interested in art, be part of a global community of artists, creating and sharing ideas at the touch of a button. They may not be able to buy the art, but they can contribute their ideas to the artist by sharing the work and commenting on social media sites. If they are the artist, they can for a minimal fee offer their work on selling platforms such as Opensea and Nifty gateway again all they need is a phone and creativity. The bigger picture is a global art market controlled by prominent art galleries or dealers. Its only ‘regulation’ is the artists’ and buyers’ authentic desire to own or create the work.
Protection and documentation
The other benefit to artists and buyers is the work is priced and documented on a blockchain ledger, this cannot be changed or hacked. Crypto art allows for transparent international transactions and legally binding in minutes.
Once an NFT is sold, it is an asset that can be sold again or held as an investment. There may be opportunities to own the original art if this is made available with the artist. For example, an artist can create an oil painting and turn this into an NFT. It is up to the artist if they would like the artwork to be sold with the NFT or something that could be negotiated. This is a stunning U-turn for artists and allows them to keep their original works which in the long term could add value to the NFT, benefiting the buyer. Some artists duplicate their NFT’s, creating many copies producing one of ten or twenty. Reproducing the artwork adds value to the idea and exposes the work to a broader audience. The copyright laws are no longer needed as the selling process automatically creates the copyright.
So who is buying crypto art?
Many of the auction houses are cottoning on to the idea of NFT’s and accepting payments with Bitcoin for artworks. It will become a standard way of purchasing as Bitcoin gets adopted by countries and the banks start to recognise it as a currency. Once the crypto filters into more and more market place customers’ confidence will rise, and buying crypto art will become more popular. Many more platforms will emerge, die all paving for more innovative, better buying and selling art exchanges. Many successful artists selling NFT’s are from the cyberpunk era or are adept at photoshop and experimenting with digital images. The buyers of these images are part of the cyberpunk community and some new art investors who perhaps have profited from Bitcoin. The other buyers are general folk who appreciate digital art. Many cyber galleries are seeking contemporary digital art and artists to promote.
It is still very early days for NFT’s with most people not understanding or acknowledging the crypto world or really embracing the digital revolution except perhaps for having a mobile phone or a computer. The market really has a sea of possibilities for expanding. This expansion will also create more focus with platforms emerging for the more traditional craftsman, the artists that have the physical originals for sale. If the market filters out categories it will make it easier to understand and adopt.
For the artists to create an NFT is not immediately straight forward and I have gone into more detail in another article which you can read here however for buyers it is simply a case of logging onto the desired platform, choosing the artwork you like, and then buying with the favored coin, usually and safely Bitcoin or perhaps Etherean.
It is a bit like coffee shops, there are now many many coins popping up but Bitcoin is the coffee. Many apps are being designed to distribute the coins but Bitcoin is the original and the only coin that is limited in amount and will most probably end up being the dominant currency and asset. I think buying art with bitcoin is guaranteed whereas some other coins may not be so accepted.