Non Fungible Tokens or NFTs based art pieces are the next big craze in blockchain tech after Decentralized Finance (DeFi). The most popular critic of digital art seems to be “But I can always save the picture!”. Yes sure, but unfortunately that’s about it.
The traditional art landscape is dotted with extremely similar and nearly the same copies of famous artistic works. However, they aren’t even worth 1/100 of the original’s value. Consider the example of the Mona Lisa, considered to be the most expensive art work in existence.
Mona Lisa is valued at $860M currently, deriving it’s worth from an insurance valuation of $100 in 1962 and adjusted for inflation. An extremely identical copy, on the other hand, sold for $611,950 only in 2019. What explains the astronomical discrepancy in price?
Even if you create or buy a “copy”, that’s still very much a copy. It’s the ownership of the original, which gives rise to true value and thus accounts for the massive difference in price.
But, let’s just say that it’s the actual brush strokes by Leonardo DaVinci that are valuable. The copy wouldn’t have it.
NFT Art Value Relies On Authenticity Rather Than Reproducibility
NFTs cost next to nothing to reproduce, but we don’t pay for the cost of creation or even authenticity, it certainly wouldn’t explain why Nike or Adidas are several times more expensive than normal footwear or apparel. The branding comes into play, even though the creation cost doesn’t vary by much.
The blockchains have a super power, much like the original Mona Lisa can be authenticated by the oldest made copy. They can verify a print or art work’s identity by referencing the ownership address and time of creation plus transfer.
It means that if you right click, save as the image and even mint a new copy, you are still not the original’s owner. Much like you aren’t the possessor of a wallet’s balance, if you have taken a screenshot of the wallet.
Nor of a house, you saved a picture of, on the Internet. It’s free to look at or to admire, but that’s about it. But, why do people pay a fortune to own NFT artwork or audios or videos?
Ari Paul Explains Why Certain Things Are Worth So Much
Ari Paul, BlockTower Capital founder might have an answer. He tweeted recently that human consumption can be linked to commodity and signalling. Sometimes we care about the stuff and what it does.
The other times we wish to signal to ourselves and to others that we are special and not the same as everyone else. It has something to do with our biases and marketing or though the belief that by wearing or owning something, we can live upto the image that we admire and associate with it.
Or it might be the fact that one believes others think that it is valuable, separates the owner from the ordinary and that’s exactly our intention by possessing ownership. The object’s high quality is a secondary quality to the statement that it makes. The narrative counts or so Mr Paul believes. What it signals to others, counts.
And so the same game with the very same mechanics is being played out on blockchain and the digital world. The same one as the traditional art. Or people just like the art, are avid collectors and are willing to purchase them at those price.
There is nothing you can do except look at it, admire and then save as. The blockchain or the distributed ledger still knows and can verify who the actual owner is.
- Shiba Inu Price Prediction: How High can SHIB Price reach by 2030?
- How to sell NFTs? – The ultimate guide
- Curio Cards – An Indepth Review Of The Oldest Ethereum Art Collection
- Solana Price Prediction – How High will SOL Price Reach in 2025?
- NFTs to save the Crypto Crash? Buy NFT On Binance NFT Marketplace!
- Logan Paul NFT Scam – What Really Happened?
- Shiba Inu Price Prediction: Can SHIB Price reach $3 in 2023?
- Top 10 NFT Games To Watch Out For in 2023
- What is Royal NFT and How will it Revolutionize the Music Industry?
- Don’t Miss Out: Fine Art NFT Marketplace PINSL Launches – What’s it About?
- FACT: Will Shiba Inu Coin reach $1 during the next Bullrun?
- 5 NFT Trends for 2022 – You don’t Want to Miss the NFT Train!
- NFTs: History and the Future Explained
- Newly Proposed Crypto Regulations “Unlikely” To Hamper Coming Bull Run
- This NFT Company got PRAISED by the French President Macron…Meet Sorare!
- Ripple Price Prediction – How High will XRP reach in 2050?
- Top 5 NFT Art Collections
- Sotheby’s “Source Code For The WWW” NFT Worth $5.4M Might Have Been Inauthentic
- Top 5 Metaverse Tokens Under $15 Million Marketcap
You might also like
More from Blockchain
Should you buy ADA today in anticipation of higher prices? Let's analyze in this Cardano price prediction article.