Bitcoin Record Highs and the New Booming Business of NFTS
Author : chals farade | Published On : 01 Apr 2021
Two Important Events Happened In The Past Few Days In The Cryptocurrency World; Bitcoin Rose To A New Record High Of $60,000 And An NFT Sold For $69 Million. The Steady Rise Of Bitcoin And Other Cryptocurrencies Isn’t As Shocking As The First Days It Made Headlines For Its Unbridled Jump.
In Its Early Days, Bitcoin Had Been Dismissed As A Fad, A Craze That Would Wear Off Eventually Like Any New Recreational Drug In The Market. But Cryptocurrency And Blockchain Technology Has Reinforced The Power Of Tech When It’s Allowed To Run Free And Wild.
Crypto’s New Frontier Is In The NFTs Or “Non-Fungible Tokens”. NFTs Rolled Into New Milestones With The Sale Of A Digital Art By An Artist Known As Beeple Whose Real Name Is Mike Winklemann For An Equivalent Of $69.3 Million.
The Piece Of Art That Only Exists Digitally Was Sold By Christie Through An Auction That Had Indicated Early On They’d Be Accepting ETH Coins. The JPG Was Bought By An Anonymous Investor For 42,329.453 ETH Coins.
THE BOOMING BUSINESS OF NFTS
Even Before Anyone Starts Ransacking The Internet For What The Heck Happened Over The Weekend, There’s Some Truth We Need To Dissect. NFTs Or Non Fungible Tokens Are Unique Digital Files. In A Sense, They Can’t Be Copied Like Regular Digital Files.
NFTs Exist On The Ethereum Blockchain But Separate From The ETH Coins. And Nothing Stops Other Blockchains From Setting Up NFTs, Some Like Bitcoin Cash Have Already Started. The Most Interesting Thing About This Is The Fact That Non-Fungible Tokens Are Powered Using Blockchain.
Think Of Traditional Art With The Signature Identification Strokes Replicated On A Blockchain Platform. The Idea Is Sweet And Advantageous To The Artist, Buyer, Or Even Collector. The Non-Fungible Tokens Have Been Designed To Add Value To A Somewhat “Worthless” Piece Of Art.
Some Of These Pieces Of Digital Artistry Can Only Be Shared Free, However, With Blockchain, They Are Worth Millions With The Latest Beeple Sale Solidifying Their Worth Further.
Traditional Art Sellers Rely On Speculation And Rarity To Auction Value For Tens Or Even Hundreds Of Millions. The NFTs Digital Art Market Is No Exception, They Want To Capitalize On The Recent Sales To Boost This Market.
The Beeple Has Made A Bold Statement And Skeptics Are Watching By The Sidelines While Enthusiasts Are Already Marking The Early Days Of The Digital Art Revolution.
IS THE NFTS BOOM SUSTAINABLE?
The New Owner Of The “Everydays — The First 5000 Days” Piece Only Recognized By A Pseudonym Metakovan Bought It Using Cryptocurrency. He Has Only Been Collecting Art Since His Fund’s Metapurse Inception In 2016. He Hasn’t Sold Any Acquisitions Yet. In 2019, He Bought The First Digital Car For The Game F1 Delta Time For The Equivalent Of More Than $100,000.
The Traditional Art Collection Has Been Sustained, Partially By A Barrage Of Old Money With Extra Millions To Spend. Cryptocurrencies Such As Bitcoin Are Producing Millionaires With Enough Money To Flex Their Financial Muscles.
What Better Way To Do So Than Investing In A Booming NFTs Market? The Stakes In The Relatively New NFT Market Are Too High To Be Ignored. The Speculative-Fuelled Art Market Would Want To Sustain The Boom.
They Are Probably Searching For The Next Best Digital Art Collectible That Would Bring Millions At An Auction. Mektovan Exclaimed That The Collection He Got Was Worth Even ETH Coin Spent Because It Is A Collection Of Digital Art Beeple Has Made Since 2007.
We Can’t Predict The Future But From Recent Developments, NFTs Have A Bright Future. Just As The Skepticism Surrounding The Foundation Of Cryptocurrency Was Evident, This Too Is Expected With NFTs.
With Bitcoins Minting New Millionaires At An Incredible Rate You Can Expect More Insane Sales Like This One. Artists Get An Opportunity To Reap From Their Creativity And Hard Work While Buyers And Collectors Get The Privilege Of Owning Rare Artistic Impressions.
The Underlying Blockchain Framework Only Shows The Importance Of This Tech In Designing The Future. New Applications Keep Cropping Up From The Simple Ideology Of A Digital Currency To The Extensive World Of Art And Rarity With The Artist’s Signature Worth Much More.