NFT Art is one of the things in blockchain that confuses me. Why would anyone want to buy expensive art in digital form that they can't even display in their homes? Honestly, I don't get the point.
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The only reason that I can understand and accept why NFT arts are bought is written at the bottom of this article, and for me, that is the only reason that I think is logical and acceptable when you're sane.
Disclaimer: The views and opinions expressed in this article are solely my opinion. I am not a blockchain expert or NFT expert and do not claim to provide professional or expert advice on the subject matter. The opinions presented in this article are based on my personal perspective and understanding.
What is NFT art?
First of all, not all NFTs are NFT art. For me, an NFT is when you tokenize something so that it can be traded using the blockchain. Examples are the digital NFT assets we own in our game, like cards and lands.
These are tokenized assets that we can sell in the market, but they are not considered NFT art because you can't pull them out of the game, and they have no value to people who are not playing the same game.
The only exception for an NFT that I can think of that can also fall into NFT art is digital books because some might argue that writing is also an art.
NFT art is tokenized art that comes in different forms like graphics, animated graphics, photography, and music. They are tokenized so that other people can buy them.
Why do they tokenize it?
I think the reason for tokenizing NFT art is because of ownership, a proof that they own this art digitally and that they have bought it from its creator.
I am also aware that there are different types of NFT art, and it is not only limited to images.
Types of NFT Art
Digital Images: Mostly graphics, including photography, graphics, and animated graphics that are tokenized.
Digital Music: Music sounds that are tokenized.
If you know more classifications, drop a comment below, so I can add them here.
It is not about the selling of digital art that confuses me or which I don't like, but the reason why people are buying it at an expensive price.
NFT arts with an affordable value is good because it can add fun in the blockchain community
Art is meant to be sold, and yes, some of them even cost millions of dollars, which I still think is a waste of money, even if it's actual art in physical form being sold at a very high price.
I have also tried selling NFT art in the market, but I priced them very cheaply. I don't think I have tried to sell an NFT art for more than $1.
Some of you might say, "It's because your art is not that good, that's why you can't give them a better price."
Regardless of how beautiful an image or a digital asset is, it is not supposed to cost like that, especially in this age where almost anything digital is easy to create and anything digital out there is easy to copy.
What are the Negative Aspects of NFT art?
High Energy Consumption
The creation and trading of NFTs on certain blockchain networks can consume a significant amount of energy. The process of minting (creating) NFTs can require substantial computational power and energy consumption.Photo by Federico Beccari on Unsplash
Let's just use that energy in cryptocurrency activities where it's much needed, rather than minting thousands of NFT arts that are just sitting there in the market and no one wants to buy.
Artistic Plagiarism and Copyright Issues
There have been instances where NFTs were created using unauthorized copies of existing artwork.Photo by Bernard Hermant on Unsplash
It's hard to find out if those arts are really unique and were created by the seller.
Difficult to Trade
When you own an NFT, you can't just sell it anywhere like a cryptocurrency. Selling them may depend on the NFT marketplace you originally purchased them from. Some NFT marketplaces have their own ecosystem and restrictions on where NFTs can be traded or resold.Photo by Blogging Guide on Unsplash
Why own a digital asset that is hard to trade? NFT arts are not like cryptocurrencies with a wide range of markets where you can trade them. They are mostly limited within the ecosystem of the platform where you bought them.
Lack of Regulation and Consumer Protection
The NFT art market lacks comprehensive regulations, which can leave buyers vulnerable to fraudulent practices like scams and counterfeit artworks.Photo by Tingey Injury Law Firm on Unsplash
In case you have bought NFT art that is fake, there are no regulations that can punish the seller except maybe banning them from the marketplace.
Illegal Acts like Money Laundering
NFT prices can be manipulated, which can be used as a means to legitimize illicit funds. This manipulation can make it harder to track the flow of funds and identify potential money laundering activities.Photo by engin akyurt on Unsplash
Although this is not easy because I think it's easier to just build a dummy company to launder illegal money, I think it is still possible.
Reasons Why People Buy Digital Art
There are different opinions regarding NFT art. I gathered some of them online, and here are the results:
Note: I've inserted my thoughts between every reason.
Ownership, Authenticity, Collectibility, and Rarity
NFTs provide proof of ownership and authenticity for digital assets.
Ownership? Why would you want to own something that you can't even use in the real world? Are you always going to access the internet before you can show people that you digitally own something on the internet and that it is an original copy?
Authenticity? No offense, but how can you tell it's authentic? Anything now can be sold as NFT art. You can grab an image of anything and sell it as NFT art, and before people even discover that it's just a random image on the web, someone might have already bought it.
Rarity? On the internet, everything can be copied and duplicated. If that rare asset is duplicated and sold in a different NFT market, it's not rare anymore.
Speculative Investment
Some people buy NFTs with the hope of their value appreciating over time.
If you want something digital that appreciates in value, look for a good cryptocurrency with a good use case. The only reason for that art to increase its value is when the owner sells it at a higher price, and someone buys it and sells it for an even higher price. But how many people will do that?
Social Status and Prestige
Some collectors are motivated by the recognition and admiration they receive from owning unique digital assets. Sometimes it also acts as a membership pass.
LOL! Oh boy... how people love to brag.
Nostalgia and Pop Culture
NFTs can tap into nostalgia, allowing people to own digital representations of beloved characters, moments, or cultural references from their past.
Just download an image of it and save it on your phone. There is no need to buy it at an expensive price. At least it is always there in your phone's gallery
Lastly, this is the only reason that is understandable for me.
Supporting Artists
Purchasing NFT art allows individuals to support artists and creators. NFTs offer a new revenue stream for artists, enabling them to monetize their digital creations and potentially receive a more significant share of the profits.
If the reason why you bought an NFT art is for a good cause like supporting artists or foundations, it's good, but only if the art represents something good.
But still, why do we need to use the blockchain to do it? If you want to support artists, support them in the real world, not in the digital world.
Purchasing NFT art is not bad if the art is not expensive and is just a means to spice up the world of blockchain. But purchasing it for absurd reasons and promoting it as a form of investment is dangerous.
I know many people will just say, "It's their money, and they can spend it however they want." Yes, it is true, they can burn all the money that they want instead of using it for a good cause, and no one can do anything about it.
Note: Incase you've found out that, I am selling an NFT on HIVE MEME. It is the only NFT art that I have listed on the market, and the value is only 3000 meme, which is equivalent to 0.9 Hive.
Whether it gets sold or not doesn't hold significant importance to me. I simply put it out there to gain firsthand experience in minting an NFT and to further enhance my understanding of blockchain technology.
I hope you liked my thoughts on this article. If you have anything to add or if you want to object, feel free to comment below.
