The artworld is in flux.
In one moment, it seems as though everyone is obsessed with Non-Fungible Tokens (NFTs), and the next, NFTs are taken wholeheartedly as jokes.
The debate around whether or not non-fungible tokens will trigger an art renaissance rages on. Some of the biggest names in the crypto space are convinced that NFTs will usher in a new era of creativity and expression, while others remain skeptical.
So, what’s the verdict? Are we in the middle of an NFT rush, or is this the beginning of an art renaissance? Will NFTs be a catalyst for change in the art world, or is this all just hype?
Let’s take a closer look at what NFTs mean to the art industry.
A revolution in digital assets
NFTs are a game-changing technology that is revolutionizing the way we interact with our digital assets. A tokenized asset is one where each individual unit has its own unique identifier and can be distinguished from every other copy by this identifying code
One of their best features is how they make it possible to move and trade ownership without a third party. NFTs’ smart contracts allow for the creation of tokens that can represent almost anything: equity, loyalty points, or even cryptocurrency itself.
Non-Fungible Tokens have transformed from being an extremely niche concept into something that everyone talks about.
The Emotional Delights of Art NFT Collecting
First and foremost, it’s important to mention what is probably the most important fact when it comes to buying art: Art collectors pay more for the emotional reward associated with ownership of the art than for the aesthetic pleasure of the art.
Simply put, people buy art for the spark of emotions, to feel prestigious, to communicate their appreciation of art, and make a statement. If NFTs can evoke those feelings, then art NFTs are bound to attract art connoisseurs. And NFTs do provide those very psychological reasons that art collectors seek. NFTs even have slight advantages over physical art as well.
The advantages of NFTs in the art industry
Non-fungible tokens are a form of collectibles that have real-world value and can be stored on the blockchain. Therein lies the actual value of NFTs: collectibility as opposed to general utility. However, nowadays, NFTs are accompanied by the utility. When collectibility and utility meet, you get a masterpiece NFT!
NFTs make it possible for anyone, anywhere in the world to own something unique, without any middleman interference and without leaving their chair. NFT art takes away the hassle of securely storing and moving the physical art. The art ‘resides’ in the blockchain forever.
Moreover, artists get access to a global market and get fairer compensation for their works. And they carve out a source of passive income, as NFTs often deliver repeated commissions whenever sold. On the other hand, fans rejoice as they get to support their favorite artists and get certain privileges like early access to their art, merchandise, meet-and-greets, sneak peeks, latest updates, etc.
NFTs have provided artists with a viable method to monetize their craft.
The disadvantages of NFTs in the art industry
As you might guess, the first drawback of art NFTs is that they may feel ‘intangible.’ They lack that sense of touch (and sometimes smell) that comes with physical art. This may lead to a decreased perception of value, but the market decides the value. And by the looks of it, some people are willing to pay thousands and millions of dollars to own digital art.
Breaking the bank to own an NFT might seem like a ludicrous idea to NFT foreigners. And they may be right sometimes as sellers sometimes struggle to get rid of an art NFT that they bought with the hope of selling it at a higher price.
It’s absolutely impossible for art NFTs to replace physical art, both will co-exist. But NFTs will continue to permeate the art industry. With the benefits they provide, most artists won’t mind the change. But if the change is so massive that it completely gives birth to a new art era, then this year could be the year of an art renaissance indeed.