New Generation’s Investment Mania – Crypto Art Trading
If you are new to investing and trying to learn about it as much as possible before diving into all of this, I’m pretty sure you’ve first heard of stocks, bonds, and, in the end, cryptocurrencies.
Still, if you read books like “Rich Dad, Poor Dad,” “Rich Dad’s Guide to Investing,” or anything else written by Robert T. Kiyosaki and the writers similar to him, that will, without a doubt, be a great start. You’ll learn a lot about rich people’s mindsets. Also, you’ll get financially educated, but…
Stocks, bonds, or any kind of investment mentioned in those books, are already becoming the Boomers of the investment world.
The generation you should follow now is Generation Z, aka the Zoomers.
This article introduces the new generation’s investment mania (crypto art trading cards).
NFTs boom and trading cards
People went crazy for the infamous NFTs, or non-fungible tokens, in May 2021. The majority of these tokens are utilized for creative content like music, films, drawings, photos, GIFs, and so on. (Our interest in digital cat art was serious.) Everything from cryptocurrency art to trading cards sold like hotcakes during this investing craze. Even the illustrious New York Times made the decision to comment on this occurrence.
Many people were in shock after learning that an NFT by the artist Beeple called “Every day’s – The First 5000 Days” had been purchased for a startling 69 million dollars. Unquestionably, that work of art set a record for the cost of digital art.
A single trading card that cost $1,3 million was another acquisition that gained global fame. Tom Brady, the quarterback for the Tampa Bay Buccaneers, was seen on the card.
Huge sums of money appeared to be being spent by people on such absurd items. On the other hand, the trend of amassing random items, both digitally and physically, has continued to gain popularity. Sneakers are one of the other items that have turned into collectibles. People claim that investing in sneakers is both smart and profitable all over the Internet.
We are leaving it to your discretion because we are unsure of just what to make about it. There is no doubt that it makes sense.
We can picture a pair of really popular shoes, like Air Jordans, costing a fortune if they were the only ones remaining in existence. People enjoy owning unique items. For some reason, it appears to be in our nature to do that. It justifies the whole situation surrounding meme currencies and the investing craze, where everything from crypto art to trading cards fetches exorbitant prices.
The Connection Between Crypto Art and Blockchain
If you are already familiar with the world of crypto investment, I’m pretty sure you’ve heard about blockchain technology since it is the ideal technology for cyber money systems like Bitcoin and Ethereum, for example.
The use of blockchain in the arts is among its most intriguing uses. Blockchain and art may intervene in two ways:
- You can use the technology to register and authenticate existing physical artwork like paintings and sculptures. To prevent forgeries and track the ownership of the artwork, you can do this through tokenization.
- Digital artwork registered directly onto a public or private blockchain is another fantastic example of how these two things may coexist. In this case, each piece of art is represented by a distinct non-fungible token (NFT). As a result, it is now possible to own and trade works of art in a decentralized setting.
What are NFTs (Non-Fungible Tokens)
You may be wondering what NFTs are at this point. NFTs represent unique digital art, each with its own unique value. As opposed to fungible digital currencies, you can not exchange NFTs for one another.
All cryptographically unique pieces of digital artwork are represented by a non-fungible token on the blockchain. That allows us to determine the rightful owner of the art.
The non-fungible tokens allow you to securely buy, sell and trade digital art peer-to-peer in a decentralized environment. One of the fundamental design choices of the NFT is that you can embed the artwork in a contract on the blockchain.
Embedding artwork in a contract means that the artwork can contain a self-destruct function and be combined with an auction or bidding system. If a buyer does not agree to the contract, the artwork will automatically self-destruct after a specified time.
We can conclude that crypto art is relying on NFTs and its future growth can be greatly influenced by this use of smart contracts. There are specialized marketplaces where you can show and trade your NFT-based artwork.
The Size of the Crypto Art Market
Since the use of blockchain in artwork has been increasing substantially in recent years, the size of the crypto art market will also only grow in the future.
Copyright, sales transparency, and origin of works are the three main advantages that have boosted the global crypto art market.
The total market size has been estimated to be $5 billion, which would make it almost 10 times larger than the overall industry of art and over twice the size of gemstones, fine jewelry, and pearls.
However, there’s the climate controversy swirling around NFTs. Due to being the ones to blame for the greenhouse gas emissions produced by cryptocurrencies, the non-fungible tokens (NFTs), are causing the crypto art market to be plagued by climate controversy.
Here you can read about blockchain art’s carbon footprint and the artists trying to reduce it.
Where to Invest in Crypto Art
There are various websites where you can browse through digital art and buy what you like.
For the investors who are a part of this investment mania, crypto art trading is something they do after they monitor the ETH price because most of the time, they pay in ether.
Here are the top platforms for buying and selling non-fungible tokens (crypto art):
- OpenSea – the oldest NFT platform.
- Nifty Gateway – currently, the largest platform by sales volume.
- SuperRare – this one accepts only 1% of applicants.
Check out the best NFT art created so far.
How to Invest in Crypto Art on OpenSea