NFTs, Cryptocurrency, and the Digital Marketplace in the Art World
If you’re struggling to gain exposure and open doors for your art and media to gain value, maybe you should expand your media to NFTs. Non-fungible tokens have their own marketplace of digital collectables and items that can be traded and bought with cryptocurrency. NFTs are one asset that is exclusively exchanged between sellers and buyers and since NFTs are only one identifiable token, this creates more value to have. The idea is that NFTs can be useful for increasing value and open new doors for clients to have more sales.
Buying artist’s NFTs is a great way to create support, and a following so that artists can have the opportunity to create a value for their work. By garnering attention, sharing, screen grabbing, creating exposure, and even using the piece around the internet, the NFT becomes more valuable. This creates a desire to have it and people will pay a lot to have the original file. What’s even better for artists is the option to generate royalties each time the token is sold in the future. This is all kept up with via blockchain technology. The digital ledger keeps up with the record of every time the NFT was sold and to whom. This creates further authenticity and the metadata cannot be changed or altered in any way, shape, or form.
The NFT comes with a digital certificate of authenticity. This also contributes to the NFTs value and can create a collectable desire for the piece. One of the best, and obvious ways, to support the artists and creators you like is by buying their work. Buying an NFT also usually gets you some basic usage rights, like being able to post the image online or set it as your profile picture. Plus, of course, there are bragging rights that you own the art, with a blockchain entry to back it up.
For collectors, NFTs can work like any other speculative asset, where you buy it and hope that the value of it goes up one day, so you can sell it for a profit. There isn’t a guarantee that the value will be more than what you bought it for, a lot of times people are willing to only pay less than what you purchased it for.
The security of block chain technology is a great anti-theft tool. It’s a digital ledger that cannot be hacked, altered, or modified so records are safe and accurate. Instead of selling your art to a gallery or an auction house, artists can directly sell to the consumer as an NFT; this option is great for making more of a profit because it keeps up with every sale and artists can even earn royalties on their art after each time it sells. These transactions are done with cryptocurrency such as ethereum or paypal. Artists can gain more recognition, interest, and value with NFTs by creating a new market for their art and media.
As a disclaimer though, some experts aren’t sure if NFTs will be worth it in the future, some have even compared them to beanie babies and their season of fame. Blockchain technology is one of the only secure sources of ledgers and record keeping that cannot be lost, stolen, or modified. With those two ideas in mind, security doesn’t lose value, and it is definitely a preventative when protecting assets.
But, NFTs and beanie babies couldn’t be more different. There aren’t any external factors that would cause the NFT to lose value such as age, theft, or damage. The only way an NFT would lose value would be if it lost popularity or trendiness. NFTs have the ability to adapt to the trends and while some NFTs can fade out and lose value, the aspects of art and media can be utilized to stay on trend and flourish as time goes on.
Whether you want to invest in someone else’s art or garner attention for your own, NFTs are kind of a big deal when it comes to expanding your reach and showing support for an artist. The NFT marketplace can be a great tool to discover something new and make your work mean something more to someone else.