A new trend on the internet has now led artists to make paintings inspired by cryptocurrencies. With the rise in the price of Bitcoin, Ethereum and many other digital assets, they are getting prevalent. So, staying part of the trend, many artists create artworks that have a touch of these newfound assets. And then, these artists are selling their artworks online for thousands of dollars. One such art piece is Bitcoin inspired Lindsay Lohan that one can purchase in the form of NFT or unique digital collectables. The term NFT stands for non-fungible tokens and are becoming a popular way of buying digital art and proving your ownership.
NFT’s are becoming increasingly popular with the growth of Bitcoin. Until now, they were only used by some creators and buyers to pass ownership of digital goods, as it wasn’t trendy. Mostly the crypto enthusiasts preferred it as a form of transaction. But now, as the popularity of cryptocurrencies is off the charts and it is actually going mainstream, the idea of purchasing digital art through NFT doesn’t seem bad. Transactions using the same have increased from almost $250k per year to $60 million.
As we see a shift from physical or regulated currency to digital tokens, the idea of owning an art or meme online is similar to having the same thing physically present at your house. So buying a Bitcoin inspired Lindsay Lohan painting is actually feasible that many are considering and also makes a lot of sense.
What is the idea behind NFTs?
The thought behind an NFT or a non-fungible token is to provide proof of ownership to a person who has paid for a particular art piece digitally. As the size of the Bitcoin and crypto market increases, so does the NFT market. Rising from a mere $250k per year to about $60 million annually, its demand and growth have been huge. This increase is almost 299% since last year (2019). People are actually paying big money for owning artworks online just for the sake of ownership. Just for a reference, a person paid $6.6 million for owning a nude painting of Donald Trump and Joe Biden.
This is not the only case. Many other artworks have also fetched huge amounts of money. For example, a picture of Lohan’s face sold for $17,000, a video of LeBron James and iconic Nyan cat gif sold for more than $100k, and many other artworks are there that went for serious money. You might be wondering why do NFT have such high prices. This is because each NFT is an individual market in itself. And the technology behind these NFT allows them to stay unique and allow owners to prove their ownership. These digital pieces of art cannot be normally copied and replicated, unlike normal content on the internet.
Until the arrival of NFTs, there were no ways anyone can own a piece of art online. In fact, everything was free online, and one could copy what they want, but now things are changing. If one wants, they can go ahead and purchase a physical form of art from a store or artist. Or if not, they can buy the same in the form of NFTs online.
Should you buy NFTs?
Well, the idea of owning digital arts worth millions of dollars online does sound interesting. But should one actually go forward and make that purchase? Is it really worth it? Will its value stay intact River the years? There are a lot of questions. A good thing about NFT is the ownership it provided without having to store the digital product physically in a place. They are also being seen as a proper business model for content creators looking to make real money.
Until now, only very few people could purchase arts because of the need of a physical presence. But now interested people can go online and purchase whatever they want. Let’s say you already have a lot of fine masterpieces in your house. All of these paintings and artforms are showcased proudly on your walls. And now you don’t have space to put up anything else. In this case, NFT can be really helpful for you. You can own the artform that you liked, but you don’t have to worry about storing it somewhere because it exists digitally.
Many even argue that buying NFTs are better than physical art pieces. This is because you don’t have to worry about the authenticity of what you are buying; you know its maker and every other intricate detail that one needs to about the thing they are purchasing. NFTs also bring the ability to buy parts of an art piece. For example, if you want ownership of a particular art but only can pay half of its amount, you can buy parts or shares of the art. So, your ownership will be 50% of the artwork. Based on these things, it does make sense to invest in a digital form of art online. But there are also certain other things that make investing in NFTs quite underwhelming. Let’s take a look at these too.
The risks involved!
It is not also good for the NFTs market. There are also some negatives that one should at least consider before buying something for millions of dollars. Like cryptocurrency, it can be believed that NFTs are living on hype and once the bubble bursts, everything goes down the drain. It is seen that the transactions in NFTs have increased drastically in the past month. Just around the time when the hype of crypto has been significantly boosted.
For any individual, the idea of investing in NFTs should be based on a shrewd understanding of the technology. If you have trouble understanding how things work and why are you paying millions of dollars for a digital signature on a painting or a meme, then it is probably not your thing. Many analysts warn users about the downside of NFTs, like it losing significant value over time, but most importantly, one not being able to showcase it in their house.
What are your thoughts on the idea of purchasing a Bitcoin inspired Lindsay Lohan painting? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: US Government to auction 0.7501 Bitcoin worth around $38k