Non-Fungible Tokens (NFT) and the Art World

After reading a recent article entitled "Boy makes $400,000 in Non-Fungible Tokens (NFT) with digital Whale Art", I decided it was time to do a little research and write a short blog to our readers providing a very brief introduction on the topic of Non-Fungible Tokens (NFT) and their use in the Art World.

I started my research with an interesting and amusing article about Non-Fungible Token (NFT) and Art Marketplaces. It was a good read, but unfortunately, after reading the article I was just as confused about the topic as when I started.

A much more informative article was published by The Atlantic called NFTs Weren't Supposed to End Like This. According to the article, a Non-Fungible Token (NFT) is a digital asset that represents real-world objects like art, music, in-game items and videos and they can be bought and sold online, frequently with cryptocurrencies that use blockchain technology. Read Unraveling the Confusion about Blockchain Technology and Bitcoin

Non-Fungible Tokens (NFT) exist on a blockchain, which is a distributed public ledger that records transactions. The use of blockchain technology and NFTs afford artists and content creators a new way to monetize their artwork. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits. In addition, artists can arrange to receive royalties whenever their art is sold to a new owner. Artists generally do not receive future proceeds after their art is first sold, so this is an attractive new feature.

Are Non-Fungible Tokens (NFT) worth the money—or the hype? Some experts say they’re a bubble poised to pop, like the dotcom craze. Others believe NFTs are here to stay and will change investing forever. We’ll find out over the coming years. See Non-Fungible Tokens (NFT) on Wikipedia

Getting Started: If you’re keen to start your own NFT collection, you’ll need to acquire some key items. First, you’ll need to get a digital wallet that allows you to store NFTs and cryptocurrencies. You’ll likely need to purchase some cryptocurrency, like Bitcoin or Ether, depending on what currencies your NFT provider accepts. You’ll then be able to move it from the exchange to your wallet of choice. You’ll also want to keep various fees in mind that most exchanges may charge you. Explore Coinbase and Exodus

Once you’ve got your wallet set up and funded, there’s no shortage of NFT sites to shop for items. Currently, the largest NFT marketplaces include OpenSea, Rarible, Nifty Gateway, and several others. Finally, approach NFTs just like you would any investment: Do your research, understand the potential risks, then if you decide to take the plunge, proceed with caution.

Other selected articles on Non-Fungible Tokens (NFT) that you might want to peruse include:

• What You Need To Know About Non-Fungible Tokens (NFT)

• What Are NFTs and Why They Are Shaking Up the Art World?

• NFT Art: What is it, How it works, and What it means for the Creative Industry

• Lost Art: Do NFTs mean the end of real-world art?

• These millennial creators are making 6 figures selling NFTs

To conclude this very brief introduction to the topic of Non-Fungible Tokens (NFT) in the Art World, here are a couple of parting thoughts.

Bottom Line: Non-Fungible Tokens (NFT) in the Art World gives you a new way to sell your works online. But...

Caution: Investing in NFTs is a largely personal decision. If you have money to spare, it may be worth considering, especially if a piece holds meaning for you. 

 

 * Read How to Create, Buy and Sell Your Non-Fungible Tokens (NFT) Artworks