Cryptomania also strangely flourishes in art

through the stream A collapse in Bitcoin, Ethereum and Co. Many cryptocurrency investors have to break their race, and another buzz is going on in the art market, which is currently being celebrated in Munich with the theme “NFT-May 2022” in the form of a festival of NFTs in art. But the hype around NFTs sometimes takes silly forms and reminds us so strongly tulip mania In the 17th century in Holland, when the price of a tulip lamp at its peak exceeded the value of a house in a prime location in the center of Amsterdam. To clarify:

NFTs (“Non-fungible Tokens”) are unique files encrypted using blockchain technology that digitally represent ownership of assets such as works of art. However, this does not include physical possession of a work of art, but rather a tradable right defined in a variety of forms. The idea behind this is to assign a value to something, even if it doesn’t physically exist in the real world, simply because it is needed. The buyer of an NFT artwork does not acquire the artwork itself, but rather a non-reproducible file that simply certifies ownership or acquisition of a digital copy of the artwork. So far it is very complex and the imagination of cryptocurrency traders knows no bounds when it comes to NFTs. Cement:

Profiting from NFT hype in the art market

Anything that is possible and what seems impossible can also be packaged in NFT. The only deciding factor is that the NFT can be traded with a privilege secured by the blockchain. This alone guarantees astronomical prices at times and makes the NFT market a playground for speculators. In March 2021, for example, NFT was sold on a virtual plot of collectible monster game Axie Infinity for $1.5 million (real). At about the same time, Christie’s Auctions put NFT artwork by digital artist Beeple, who was popular on social media but was practically insignificant, under the hammer for $69 million. This amazing auction truly kicked off the NFT boom in the art market, with famous museums and exhibition centers now eagerly participating. In order to earn money, for example, digital copies of famous masterpieces or parts of them are presented in the form of NFTs. Example:

Klimt-NFT: €1,850 for an extract from a digital copy

A few months ago, in February 2022, the Vienna Belvedere disassembled a high-resolution digital (!) copy of the famous but out-of-sale painting “The Kiss” by Gustav Klimt into 10,000 individual parts and offered these parts in the form of NFTs for sale at €1,850 each. Good deal for Belvedere, which has so far managed to raise around 4.4 million euros with this fundraiser. But what do NFT buyers get?

Each Klimt NFTs represents one in ten thousand digital copies of the popular 180cm x 180cm board. So the proud NFT owner can dial a few square millimeters of the digital copy of the image. The question arises about what it means to buy a digital extract at a relatively appalling price. Because there can be no question of enjoying art, especially since there are probably better and cheaper options for this. For example, a full-size, high-quality art print of the entire Klimt board is available on Amazon for a fraction of the NFT price. The only motive for buying the digital extract is to speculate on a potential increase in the value of the NFT. However, things went completely wrong in this case. Because Klimt NFTs are currently traded on the Opensea NFT platform at an average of around €650. Thus, the loss in value is 65% within three months. this means:

When it comes to art, it is recommended that you actually buy an affordable original, for example by a young artist. If the expected increase in value does not occur, you can at least enjoy the artwork scene in the long run. On the other hand, if the focus is on investing, it is important to stay away from cryptocurrencies or NFTs and hard assets like Heroes Arrow Or bet on gold. Because by buying shares or shares of Champions in boerse.de . fund Gain co-ownership of real, long-term, successful companies. And unlike NFTs, gold-backed currency is securitized boerse.de-Gold-ETC (WKN: TMG0LD) The right to delivery at any time a beautiful shape borse coins. Detailed information is available at www.boerse-gold.deAll you need to know about investments, asset accumulation and asset protection can be found on our website Head to your fortunethat we would like to present to you Send for free.

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Thomas Dirndl
Editorial team Börsenverlag

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