What is an NFT/Crypto Art or NFT Art and Why is it Blowing Up? – NFT Tutorials EPI 2

Hearing words like ‘Crypto Art’ and ‘NFT’ and don’t know what it is?

I’ll try explain in this post.

It might be a weird mish mash of Tech and Art talk so bare with me.

What is an NFT, (Non Fungible Token)

NFT means Non Fungible Token.

Non Fungibility is an economic term to the nature of items not being equal to one another and those not tradeable on a 1:1 ratio.

For example, 2 houses, or 2 tickets (with different seats), 2 pieces of real world art, etc.

You can’t just simply trade your art with someone else’s art, or your car with someone else.

It has different wear & tear, different mileage etc right?

whereas FUNGIBLE, means that things ARE trade-able amongst each other.

1 gram of gold = another gram of gold,

1 bitcoin = another bitcoin

1 dollar coin = another dollar coin.

So a Non Fungible Token is a Token on blockchain that has its own unique define-able characteristics that can be attached to an image. Making each token Unique.

BAM, NFT Art!

Suddenly you can own more than just ‘fungible’ currency on blockchain. Instead of just ETH, Bitcoin, XRP or whatever cryptocurrency tickles your fancy, you can actually own ASSETS that are represented by these NFTs.

Eg, this is the contents of my wallet on Opensea.

I have some Axie infinity creatures I can use in their game to battle other Axie trainers/owners.

I’ve got some Decentraland ‘wearables’ in the top right, that I can wear in the virtual platform.

Or just buy some Art from Artists I love to support/buy Art from. The key here is not just the Art but the actual verified Artist you’re buying Art from, (just like in the real world).

You can see below how there was a bidding war for an Art piece recently.

So an NFT really represent any item that can live on blockchain and you can interact with using a ‘Metamask wallet‘.

Here is a tutorial on setting this up.

This digital wallet holds your cryptocurrency and blockchain related items so you can take them across different project.

Just bought some Art? Take it to Decentraland and hang it in your virtual Land/House.

This is called interoperability, we’ll get into this a little deeper later.

What Does This Mean for Artists and What is Crypto Art?

SO MUCH.

Suddenly artists can attach a ‘token’ to their Art whether it be a digital Art piece or a music piece or anything else really.

Blockchain allows everyone to verify ownership, authenticate that it came from the artists verified account, track when it moves from one wallet/collector to another, etc.

On the backend it looks like this,

So the tech has now made it possible for artists to connect their creations and monetize their creativity on blockchain.

How cool is that!

Artists can apply to projects like superrare, makersplace, known origin or just make a new account on rarible to get started ‘tokenizing’ their artwork.

Once it’s made a token, it can be purchased by anyone with crypto, (mainly Ethereum). Ethereum is obtainable by your native cryptocurrency exchange.

So in the crypto world, a lot of people already own ETH, Bitcoin, etc, so when it suddenly became possible to buy NFTs that represent Art, game items, etc, it blew up.

We’ve seen Superrare just hit $3M in total sales, (collectors + artists), (most coming in the last 2-4 months).

Artists selling Art to Collectors.

Collectors selling Art to other collectors, in many cases other Artists that get $ from selling their Art! Crazy.

Why Should Investors/Collectors Care?

It’s an easy way to buy digital Art that can be tracked to the original owner.

If you check my profile on Superrare, it will display the art that I own.

Got a cool mix of Mercpin, Fewocious & Marc0matic.

I paid around 6-8 ETH for these each. Just the other day I received a 11.5 ETH for a Fewocious piece. Double what I paid for.

Will I sell? HELL NO. This isn’t leaving me unless I get something ridiculous. But it’s an example of how collectors can increase their ‘investment’ returns.

By buying Art from Artists who will continue making great Art and getting more collectors to fight for their pieces. More demand = price increase. And when you have only a select few art pieces, they can go up substantially.

Over Hyped?

Maybe at the moment.

But Art selling for $10-$50k isn’t new. It’s just become more visible on Twitter.

For 2-3 years we’ve seen cryptokitties, Decentraland Land, Art all go for 5-6 figures.

Over $100-$200M has been spent in this industry, probably close to $1B transacted.

Whether hyped or not, it’s been slowly increasing for years now and as more people understand the investment flow, it will only continue to rise in my opinion. Especially if Bitcoin soars and people want to diverisyf they’re $100k Bitcoin to another asset class.

HELLO NFTs.

It’s going to be a wild new ride and I want to be in the front seat of it all.

 

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