Artwork is attracting more wealthy family offices to dabble in cryptocurrency

The editor of the Financial Times, Stephen Furry, made a comment on October 25, in which he introduced his journey from being a cryptocurrency skeptic to owning a non-homogeneous token. He believes that non-homogeneous tokens may be an opportunity for some people to enter the world of cryptocurrency because it is still a work of art. And by understanding the mechanism behind it, more people can understand cryptocurrency and blockchain technology.

After observing the cryptocurrency boom for ten years from the sidelines, even some diehard skeptics have begun to devote themselves to buying their first digital assets.

Is this a time to rehabilitate the pioneers who promoted digital currency as an asset class and heralded a technological and financial revolution? In other words, this is just a sign that the hype cycle is reaching its final and most fanatical moment, and then the craze will recede? I also hope that I can know the answer, because I am also one of those skeptics. And now, I own a non-fungible token, or NFT.

Citi Private Bank’s annual survey of family offices (note: institutions that manage assets for wealthy families) in September found that 23% of people now have cryptocurrency assets in their portfolios, and another 25% are considering investing . Among the family office executives who participated in the Citi Forum related to the report, half said that they expect to increase the distribution of cryptocurrency assets next year. This number is large for consultants who usually manage funds conservatively.

The interest in digital assets first spread from overthinkers (crypto utopians who are excited about complex solutions to unknown problems) to underthinkers (followers who expect to make quick money from transactions that are barely understood). It seems that it finally reached the thinkers who followed the consensus.

I have a theory about this. If there is one thing that the rich and their consultants know about, it is art. This year, the world of cryptocurrency and art collided in the form of NFT.

These NFTs are code snippets representing a piece of art, or snippets of a basketball game, or a tweet, or William Shatner (Note: William Shatner, the first generation of Captain Kirk in “Star Trek” Actor. 10,000 NFTs based on his photos were sold out in nine minutes.) photos. They can be purchased with cryptocurrency or convert traditional funds into cryptocurrency. Its ownership is recorded on a digital ledger called a blockchain and transferred using the cryptocurrency of this blockchain.

Artwork is attracting more wealthy family offices to dabble in cryptocurrency

Photo by Maxim Hopman on Unsplash

It has always been easy for people to deny the utility of blockchain technology. We already have a method to record and transfer the ownership of digital assets (just like recording money in a bank account), and have an established legal infrastructure to ensure trust in this system, but the blockchain does not have this ability . I still don’t know if we need a different approach. But continue to say that the use of blockchain is only theoretical, and it is no longer tenable.

The reason I own NFTs is that one of my artist/developer friends has been casting them. They are not only a way for him to make money from his work, but also a unique way. The code embedded in the token guarantees that he can receive royalties when his works are sold. This is something that no artist can insist on in the physical world. This is one of its uses.

Therefore, now I am a proud token owner on the Tezos blockchain. It represents a piece of generative art (a piece of art that is partially or completely generated by an autonomous system), which is a hexagonal GIF , Dissolving, rotating and deforming in endless cycles. If you want, you can also download this GIF. But I am the only one who owns this token.

I don’t have any illusions about what I have, I just want to see what happens. In addition to whether the artist’s work will be considered valuable in the future, what happens to the NFT depends on whether we agree that having a unique token is different from copying this GIF or viewing it on the web, and is more high-end.

The blockchain on which tokens can exist, and the cryptocurrency on which they are valued, are other variables. Blockchain may and does fall into disrepair. Currently, Tezos a strong supporter, but its popularity is much lower than Ethernet Square , and Ethernet Square being declared himself NFT higher value, new financial services, and many other game developers test of choice for district Block chain.

No matter what is created and traded using blockchain technology, they may have higher value. I don’t know how to evaluate the currency that makes each blockchain work. The biggest investment opportunity may not be in cryptocurrency assets at all, but in companies that operate and utilize this technology. But I now understand its possibilities better than before I plunged into it.

Artwork is attracting more wealthy family offices to dabble in cryptocurrency

Photo by Morthy Jameson on Unsplash

The point is that we are in the midst of a great experiment, and investors who once sneered at it should now consider participating. In the Citi Family Office survey, 25% of people said they were “still in a research mode seeking advice.” I agree with them. No matter how much money the family office spends on research and advice, they can get the same valuable insights by turning a little attention to cryptocurrency and seeing what happens to it.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/artwork-is-attracting-more-wealthy-family-offices-to-dabble-in-cryptocurrency/
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