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Should I invest in crypto art?

In this informational age that technology is continually evolving digital artists are figuring out ways to showcase and sell their art. It’s harder to acquire digital artwork than traditional art. Crypto art first became available for sale in 2014, however it also brought new challenges. In simple terms,…
Digital artists are always finding new ways to market and show their work in the digital age. Digital art can be more difficult to acquire than traditional art, and “crypto art” was first introduced in 2014 to address this issue, but simultaneously it brought new challenges.

Simply put, according to the definition on Medium, crypto art is digital art relating to Blockchain technology that allows users to buy, sell and trade art works as if they were real ones. Crypto art can be authenticated using an NFT (non-fungible token). An NFT token is a kind of token that is used to prove ownership of crypto artwork. It’s a unique identification that is tied to the piece of crypto artwork and cannot be duplicated. It’s used to prove the authenticity of the piece of art, as per The Verge.

Blockchain is a database that’s used to exchange cryptocurrencies such as bitcoin. While there are a variety of information that can be stored on blockchain transactions are among the most popular. Exchanging digital art via the blockchain is similar to exchanging cryptocurrency.

One of the most common misconceptions about crypto art is that someone would pay for the artwork when it is easily downloaded or stored online. The picture that anyone is able to download online is of no value, but the original work that is NFT linked can raise in value as time passes.

According to The Conversation, the value of art is determined by its rarity. Crypto art is not able to be reproduced due to the NFT. Another reason for this is that collectors put value on it, again because of the rarity. Many people purchase crypto art solely to increase in value while others purchase the art due to a sense of connection to the art or want to show support to the artist.

One artist, who goes by the name Beeple, has sold the most expensive digital art auction to date , for an estimated 70 million dollars, according to Business Insider. Beeple is well-known within the crypto community. He told Business Insider that when he saw that was nearly $70 million “It is likely to indicate that digital art will be around for the long run.”

The benefits of crypto art:

The art of cryptography has a significant impact on the lives of consumers, investors and artists. It’s a new and exciting ideawith many potential. Crypto art has many positive aspects. Every piece of crypto art that is produced will be registered in the blockchain. This removes any doubts regarding ownership and authenticity. Collectors want to know that they own a special piece of art that is extremely rare.

Fine art artists typically rely on gallery owners auction houses, auction houses and costly advisor coordinations. But, art that is crypto is able to be transferred from the creator to the buyers in just a few moments. Crypto artists can also sell their works on different marketplaces simultaneously, which means greater opportunities and more exposure to the artist.

Artists also enjoy the benefit of being able acquire 80% instead of 50% of their initial purchase. They also have the ability to make a sale on their first purchase and 10-15% of secondary sales.

A further advantage that has emerged from the creation of cryptocurrency art is the capability for artists to be creative with no limits. Digital art has opened up an entirely new creative avenue which is not widely appreciated by the fine art community.

Crypto art also seems very futuristic. In the same way that VR and AR increasingly develop digital art falls into this category. Crypto art could very possibly be the next era in digital art.

The drawbacks of crypto art:

French philosopher Paul Virilio has been quoted as saying: “When you invent the ship, you also create the shipwreck.” In accordance with this adage, every innovation of technology has the risk of having a negative side. Crypto art comes with a myriad of environmental implications.

Blockchain technology is already consuming a lot of energy because crypto art lives on Ethereum blockchain. This is very dangerous for the natural environment.

Crypto art is so energy-intensive due to the fact that major cryptocurrency utilize a protocol for determining their value. Based on Bar and Line, the average carbon footprint of one artwork of crypto is around double that of an individual’s annual carbon footprint.

Yet, there is work being done to get the Ethereum blockchain to a much more sustainable path, called Ethereum 2.0, that would supposedly reduce energy consumption by almost 99%, as per the Ethereum website. Technological advancements are expected to happen. So in this case it’s better to accept it than be against it.

In the end, nobody is certain whether blockchain will ever become a major aspect in digital art, but for now, crypto art is fairly fresh and a fascinating medium for artists to explore.