What role can NFT play in art collection?

In 2021, the virtual artwork “Every Day: The First 5000 Days” was sold at Christie’s auction house for US$69.34 million (approximately RMB 450 million). Relying on the foundation of blockchain, NFT with cryptocurrency as the settlement method has triggered an investment boom.

As a niche culture, NFT digital art has always existed. In 2021, artists will enter the venue one after another, major brands have joined the fierce battle, auction prices have repeatedly hit record highs, and NFT has also become the focus of attention of all parties. The charm of NFT technology is that it is very international, and may also become a force to subvert the traditional art market. At the same time, artists are also using this technology to create a world full of new creative opportunities.

When you purchase an NFT token, it means that you have obtained its indelible ownership record and the right to use the actual assets. For example, if you buy a piece of art, it can be displayed and copied, but only you are the actual owner.

What role can NFT play in art collection?

NFT is a “unique” asset in the digital world. It can be bought and sold and used to represent some commodities in the real world, but the way it exists is intangible.

With the wave of NFT, the first challenge is the order of the traditional art collection industry. The logic is also to bypass art intermediaries (de-center), remove the threshold of art collection, and freely trade art on a blockchain system that the public can participate in: everything can be speculated.

The monetary system and the art industry as a challenge target are quite different: the monetary system is backed by national violence and hopes to expand and expand continuously to enhance international influence, especially the ability to transfer financial risks. The art collection industry does not have the urge to expand, or the expansion of the collection industry is achieved by raising the threshold, increasing influence, and then increasing the value of a single transaction, and its transaction volume will be limited to a boundary.

The industry’s top intermediary, Sotheby’s, will only trade in the most high-end artworks, and will not lay down for low-net-worth transactions. The way for low-level intermediaries to upgrade their ranks is also in the direction of high net worth. There are also some intermediaries that do not have high net worth or do a lot.

The reason why high-level auction houses need to raise the threshold, and the reason why the transaction volume of low-level trading venues cannot increase, is because of this industry that needs to be hyped, the transaction link is not smooth for trust reasons-fear of buying fakes. In the collection industry in the NFT era, intermediaries only do marketing. Blockchain-based NFT, use blockchain and virtual currency to build a trading platform, and use NFT to solve the problem of counterfeit goods.

NFT is currently most suitable for the trading of digital assets (such as videos, pictures, artworks, etc.) of digital products. Its essence is to make its digital copyright into a virtualized token and place it on the blockchain for trading.

This trend may eventually become a true sinking auction market-art collection is no longer a game for the rich, and it is possible to spread art to the general public. At present, its biggest bottleneck may be how to adapt digital products to NFT. How to combine the larger physical products in the market with NFT tokens, expand the market where NFT can be speculated, and truly realize that everything can be speculated.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-role-can-nft-play-in-art-collection/
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