Should You Buy Art NFTs? 20 Tips
Should You Buy Art NFTs? 20 Tips
NFTs have taken the art world by storm as is illustrated in discussions on the same over at runrex.com. This is evidenced by the fact that a virtual work by cult artist Beeple sold for more than $69 million recently in a timed Christie’s auction that set a new record for such digital art. But what are NFTs and should you buy art NFTs?
What are NFTs?
NFTs, or non-fungible tokens, and are a type of digital asset – essentially a tradeable, digital ownership certificate, authenticated through blockchain networks that hold a record of the underlying data. According to guttulus.com, they are unique digital assets that can be bought and sold like any other piece of property, but they don’t have any tangible form of their own.
What is a blockchain?
You might now be wondering what a blockchain is. From discussions on the same over at runrex.com, a blockchain is essentially a digital ledger, which means that virtual art can be authenticated as one-of-a-kind or limited edition and, therefore, become collectible, even though it can also be downloaded and reproduced with ease.
NFTs and art
As the gurus over at guttulus.com point out, an original painting or a limited-edition print is valuable mostly because not everyone who wants one can own one. However, that is not true for digital assets, since, as mentioned in the previous point, they can be replicated infinitely. This is where NFTs come in as they hold out the promise of actually owning something unique through blockchain technology.
Ownership of NFT art
If you think that buying an NFT-based artwork gives you the exclusive right to own a copy and make use of it, then think again. NFTs are easily viewable online and there is nothing stopping anyone from making a copy.
What are you, then, getting when you buy art NFTs?
After reading the previous point, you may be wondering then what you will be getting when you buy art NFTs. Generally, you will get nothing more than the ability to claim and sell the right of ownership to the work, with artists retaining the copyright to the underlying art.
How are NFTs doing?
Given the way NFTs are structured, it is hard to estimate the current size of this market. Still, as covered over at runrex.com, reports have estimated that the overall NFT market was worth more than $250 million in 2020, which is up 299% from 2019, and with the recent surge in interest in the space, it is likely worth a lot more in 2021.
A willingness to pay big bucks
When it comes to art NFTs, it is clear that people are willing to pay big money to get their hands on them as articulated over at guttulus.com. Beeple has been at the forefront as far as this is concerned as he has sold art collections for $6.6 million then for $69 million, and so forth in recent months. Grimes also sold $6 million worth of digital art in late February, while one picture of Lindsay Lohan’s face went for $17,000, and another for about $44,000.
Why are art NFTs so valuable?
The main reason why art NFTs, and NFTs in general, are so valuable is because of their scarcity which allows them to command such high prices. Unlike regular content that can be endlessly copied and replicated online, the blockchain tech behind NFTs allows unique signatures confirming authenticity as well as proof of ownership to be assigned to digital artworks, making each collectible one of a kind as explained over at runrex.com.
Is this trend likely to catch on in the traditional art market?
At this point, you may be wondering if this trend will catch on in the traditional art market. Well, it already has. This is evidenced by the fact that even establishment players in the art world like Christie’s are getting involved. Christie’s became the first major auction house to offer NFTs and is currently accepting cryptocurrency as payment.
Why you should buy art NFTs
The following are some of the reasons why you should buy art NFTs
It’s the future
NFTs have revolutionized the art world and seem like the future in this industry. Ownership of digital art has proved a thorny issue since the advent of the internet. NFTs could potentially solve this issue by allowing for a secure way to store digital assets and prove ownership, meaning you also won’t need to keep your new artwork in the family safe.
You can trust the technology
While there is debate on whether NFTs are here to stay or not, there is no doubt that blockchain technology is here to stay according to guttulus.com. You can trust the technology and can be sure that if you purchase an art NFT, your ownership of it is not in doubt.
They democratize access to owning art
NFTs also democratize access to owning art as discussed over at runrex.com. Investing in art has traditionally been the reserve of the upper-classes who are likely to afford to invest in the same. However, crypto art could provide a way for those with less capital to invest in works.
You don’t have space
According to the subject matter experts over at guttulus.com, those who may want to invest in art but have nowhere to put it up could also be interested in NFTs as an alternative. When buying art NFTs, you don’t have to think about where to put them.
Carries less risk
Investing in art can be inherently risky, particularly since it is difficult to know if it is legit or not in a world full of fake art pieces. This is where art NFTs come into play as they are less risky than buying traditional art, making them a less risky investment as they easy to authenticate because of the blockchain technology backing them. When you are investing in an art NFT, it is easy to check and see if it is authentic, who made it, and whether it is an edition or not.
NFTs in general have provided an excellent investment opportunity to those looking to expand their portfolios, and art NFTs are no exception. The fact that we are seeing a boom in the value of NFTs means that buying an art NFT can be an excellent investment as their value is set to continue going up.
Support your favorite artist
As revealed in discussions on the same over at runrex.com, the COVID-19 pandemic has hit the creative industry pretty hard with shows canceled. NFTs provide artists an opportunity to make ends meet as they are now able to sell their pieces with in-person shows not being an option. Buying art NFTs is, therefore, a great way to support your favorite artist during these tough times.
Reasons not to buy art NFTs
If you think it’s all hype
There has been a lot of fanfare and noise around NFTs in the last couple of weeks and months, and naysayers argue that this could all just be hype, pushing prices up, and invariably ending in a painful crash. Therefore, according to guttulus.com, one of the reasons not to buy art NFTs is if you think it is mostly hype and that it is just a bubble that could burst.
If you don’t understand them
The subject matter experts over at runrex.com insist that you should never invest in something that you don’t understand. If you are not a believer and don’t understand art NFTs, then it is probably better for you if you don’t invest.
You believe that passion investments have to be tangible
You should also probably not invest in art NFTs if you believe that passion investments have to be tangible. This is because, with crypto art, yes you can carry it around on your phone or laptop, but you can’t hang it up in your living room or impress guests with it.
You are worried about the environmental impact
Art NFTs have got a dirty secret: most are stored in the blockchain of the Ethereum cryptocurrency, which has a heavy carbon footprint. If you are a green-minded collector, then you might want to avoid buying art NFTs.
This article has attempted to be balanced by articulating reasons why you should buy art NFTs as well as reasons why you shouldn’t, but it is up to you to make that decision based on your preferences. In the meantime, you can find more information on this topic at the highly-rated runrex.com and guttulus.com.