Unveiling the Virtual Veil
How many of you have heard about Non-Fungible Tokens or NFTs? If you're in the luxury artwork sphere and that term doesn't ring a bell, well, my friend, either you're living in the previous century or you're too engrossed in the mesmerizing colors of your Picasso! You might be asking yourself, 'What am I, a refined art connoisseur, doing with these tech mumbo-jumbos?' That's precisely your first lesson! NFTs are the next big thing in luxury artwork investment. Intriguing, right?
Simplifying NFTs
In layman's 'artistic' terms, NFTs infuse technology with art. It stores the ownership information of a piece on a digital ledger called blockchain. It’s like the autograph at the back of the canvas, except it's on the cloud!
And if you’re thinking, ‘But I love my tangible Da Vincis and Warhols!’, fear not! NFTs can prove ownership for both digital and physical art. Now, isn’t that snazzy?
The Virtual Appeal
Now you might ask, 'Why would luxury art investors be interested in NFTs?' Here's the thing - NFTs offer what traditional means of art investments lack: transparency, ease of transfer & art immortalization. You will surely like at least the last one, who wouldn’t want their artwork live eternity, eh?
The NFT Market
The NFT craze isn't just a fad. According to NonFungible.com, the total value of NFT transactions quadrupled to $250 million last year. Astonishing, right? But guess what outperformed the S&P 500, gold, and other traditional investments in 2020? You guessed it; it's NFTs!
The Risks
Like every investment, this too has its caveats. Remember the 17th-century tulip bulb craze? Many fear NFTs to be a similar bubble. Moreover, issues like copyright infringement and high energy consumption are undeniable. But with proper research, risks can be mitigated.
Masterpieces You Can Own
Even as we speak, pieces like 'The First 5000 Days' by artist Beeple are being auctioned at Christie's exclusively as NFTs, and it fetched an unthinkable $69 million! Why not join the party and get your Monet on cloud!
