Everything you want to know about NFTs but you’re afraid to ask!
So, you’ve heard of non-fungible tokens or NFTs. You’re wondering what the hype is all about, and why should you care? Well, that’s a great question! Essential, non-fungible tokens are unique digital assets that distinguish themselves from others. In plain English, they’re fantastic! Investors, collectors, and enthusiasts can make money from these individual assets by buying, selling, and trading them.
On the other hand, businesses can establish branding and loyalty among their consumer base. But what exactly is a non-fungible token? Read on below to find out more.
Suppose you’ve been itching to find out more about NFTs and how they are reshaping the art world in ways that haven’t been seen since Andy Warhol stumbled upon an electric-cooler-sized canvas of Campbell’s Tomato Soup. In that case, you may be wondering what all the sudden fuss is about. After all, so far, NFT rose considerably in the first six months of 2021 to $2.5 billion in sales, up from just $13.7 million in the first half of 2020. The overall volume of NFT tractions totaled $24.9 billion in 2021, compared to just $94.9 million in 2020.
However, interest in NFTs has spiked in the last six months of 20212. During those months, overall sales in the art market were $22.46 billion. Roughly ninety percent of this figure came last two quarters! (Reuters)
Art Industry
Art has steadily become more and more technically advanced over the past decades. As a result, there are multiple technological approaches to creating art, with new methods emerging recently.
The year is 2021, and cryptocurrency is booming. Over the last 2 years, traditional art has slowly given way to the new art form called Non-Fungible Tokens (NFTs). And I don’t know what you thought of this new currency, but honestly? It’s pretty huge! They’ve made a lot of millionaires over the past 12 months. So as an artist looking to diversify your portfolio or as an investor looking for your next big play, you are probably wondering how you can get in on the action.
Art is one of the biggest industries in the world, right behind the music industry (and more prominent than the movie industry). But it’s also a huge market that’s been untouched by technology — until now! That’s why you want to know everything there is to know about NFTs.
So here is what the art world needs. It needs transparency in how it operates, and it requires a system of secure digital ownership. Blockchain technology is the perfect solution to support these areas in art asset sales. The use of NFTs is a powerful idea taking front stage in art sales. The effects are going to be genuinely revolutionary and unique!
Tezos philosophy, Tezos Foundation, and the future of art!
Current digital systems handle provenance and ownership rights poorly. The design of Tezos maintains the integrity and ownership of art with its built-in, permanent ledger. Furthermore, with Tezos, NFTs can be traded globally on any open market. This allows artists and collectors to take a larger share of their art sales and enable artists to create and gain a broader public audience for their work.
The current average value of an NFT is less than $300, and the highest sale NFT was $91,800,000 by artist Pak. But why buy an NFT, you may ask? Well, they’re unique, irreplaceable (mostly), and can be traded with any other user on the network. Imagine if you bought stock in Apple in 1995 when they IPOed–not only would you have made money back then but also every time you sold that share again later. In the future, artists can hope to see a similar thing as companies adopt this digital currency and blockchain technology moves on from its current infrastructure to something that may better suit it.
Trends in Digital Creation
Digital art is the latest trend in the art world, with more and more artists turning to blockchain platforms to sell their work. The low barrier to entry is undoubtedly enticing; artists don’t have to engage in the often arduous task of finding a market for their work and can simply focus on creating something that they can sell at any time. Of course, it’s a different way of looking at the process of selling one’s art, but it’s an idea that could definitely take hold in the years to come.
The artists get the most control over their work. The fans get to use and support the artists they love. The system creates demand for the art itself, not just the digital currency. Cryptocurrencies are a new way of exchanging value that has gained popularity. It is also not subject to inflationary pressures as in other markets. Therefore, it is likely that more people will start investing in cryptocurrencies, and more artists will begin using crypto-related technology to promote themselves.
Webinar
Join me for a free webinar Future in Art, Everything you wanted to know about NFTs, but you’re afraid to ask, Sunday, February 27, 1:30 – 2:30 pm EST. Please register using this link.