Thread by @ideafaktory

Verifiable, digital-only art is the trend of the moment.

AKA “crypto art” or “#NFTs” (non-fungible tokens), this work lives on the blockchain. Here's one of the better arguments for it.

A few critical thoughts...

one37pm.com/grind/money/th…

1) I'm all for artists having more ways to make money from their work & access more buyers who value it, in whatever form or medium.

2) There are two main perks crypto brings to the table: verifiability of ownership & elimination of middlemen, eliminating friction.

#NFT

3) The downsides of #NFT are linked to the purpose art historically serves: a) investment, b) status, c) decoration. (Order varies per collector)

The immediate problem is (c), which precipitates problems with (b). You need to print it out to show off in meatspace. In digital...

In digital, #NFT=JPG. The minute it's displayed, it's replicated frictionlessly. It can appear on millions of screens at once. Everyone can claim ownership, unless there's an audit or owners tattoo on their blockchain history.

Digital intangibility affects status AND investment.

4) What's left is investment. NFT value, like art/cryptocurrency/luxury goods isn't based on utility or tech, but on belief. Once early adopter novelty wears off, you need enough believers to sustain a market. This is possible because the future is belief. ideafaktory.com/belief

5) Main drivers of #NFT's are huge cash surpluses seeking viable investments & massive resources dedicated to squeezing utility/value from the blockchain. Early adopters will make some cash, but its old money that buys art, IRL. We'll see if those worlds meet.

To be continued...