In March 2021, Beeple’s (42) “Everdays: The First 5000 Days” was sold at Christie’s for US$69 million. There was a lot of muttering: How can purely digital art be sold for such a sum? The American graphic designer and digital artist, whose real name is Mike Winkelmann, joins Jeff Koons (68), David Hockney (86) and Jasper Johns (93) in the ranking of the 4 most expensive living artists.
NFTs are traded in the millions today. Recently, the niche market on the Internet has experienced real hype: images are exchanged for cryptocurrencies. For many, a futuristic and modern view of art. And we ask ourselves: Will this be the future of the art market? “We’re definitely in the midst of a lot of deception right now that has led to these incredible prices – I think that will definitely change and put into perspective,” warns Sabine Himmelsbach, 57, director of House of Electronics. Art in Basel (HEK). While the price of Beeple’s work has certainly gone up, Himmelsbach is pleased that digital art pioneers are now receiving new appreciation.
What is NFT actually?
For anyone who understands the term NFT train station only, Himmelsbach explains: “The abbreviation stands for token of no value. It is a digital asset like no other, demonstrating the uniqueness and authenticity of associated files.” It doesn’t necessarily have to be a work of art, it can also be a simple image, text or video.
The interchangeable cryptocurrency differs from other assets such as bitcoin because all bitcoins are the same. «For NFTs, technology associated with a blockchain is used to present digital systems as unique elements. Thus, digital artworks can be transformed into virtual products that can be traded independently, which was not possible before,” explains the media art and digital culture expert.
When describing crypto art, terms that are not easy to understand are used. You hear about blockchain over and over. They can be thought of as an expandable data chain, somewhat like giant hard drives. Himmelsbach says: “This is a decentralized, public database that works as a payment platform and authentication tool as well as a distribution environment.” Finally, you buy a certificate of authenticity, proof of ownership of a digital file. There is no such thing as original in the digital world, as digital files can be copied. “Owning the NFT of a business clearly identifies the buyer as the owner,” says the HEK manager.
The lure of digital art
It provides the best foundations for the crypto market as art is attractive and attracts many people. Art is and continues to be a popular investment object. Young people, in particular, rely on making a profit from the resale of art.
In a digital context, artists’ works are paid with the cryptocurrency Ethereum. If you want to buy artwork on the Internet, you must first buy cryptocurrencies. Therefore, the prices of NFT art are also affected by the price fluctuations of cryptocurrencies.
However, Himmelsbach believes there are other reasons for the appeal of owning crypto art: “On the one hand, the pride of owning a digital artifact that you can brag about among friends, for example, is definitely addressed. On the other hand, I think the incentive lies, above all, in an appreciation of the digital culture and its associated developmental history, which connects many collectors from the crypto scene with these artifacts – namely, memories and important artifacts from a culture one grew up with. up and ultimately shaped you too.”
Artists can control sales themselves
As in the real world, there are many more big boy names in the crypto art universe. But Himmelsbach assures: “There are definitely a lot of women in digital art – certainly also because of the relatively easy accessibility of technology today and the openness of the medium.” As an example, she cites Addie Wagenknecht (41) who had an IT education before starting her art career. “His art deals with the impact of technology on society and so it was a logical step for him to position his art in the digital realm.”
Entering the digital world as an artist isn’t always easy, so Himmelsbach advises: “You should always stay authentic and engage with ideas and topics that really move you personally.”
The digital world offers advantages for artists. NFTs provide access to the art market as they can sell them directly through online platforms. The media art and digital culture expert says: “This means they are independent of the galleries and can control their sales themselves. So there is no classic ‘watchdog’ anymore.”
First of all, the newly developed niche brings something to the artists: more freedom! Because in the future they will no longer have to forego money, no longer bend over to comply with specifications and satisfy gallery owners. Authenticity regains the upper hand.
Everything has a small downside: Artists have to be very active and advertise their work themselves, because in the end, the level of awareness or the network decides the sales revenue, according to Himmelsbach.
Are NFTs part of the future?
Looking at the world of crypto art, it is quickly recognized that NFTs are a very complex subject. The effects have not yet been seen. “As I said, I think the price level will be put into perspective, but with blockchain, a new key technology has emerged that promises greater decentralization, self-determination and transparency,” Himmelsbach says, with a view to the future. The blockchain-based token economy is something that will stay secure and experience new applications.
But crypto art still has room to improve because there is so much to improve. “I believe NFTs are currently looking less at the quality of a job and more at the record amounts currently being achieved,” the HEK manager said. Unfortunately, this often hides the need to talk about questions of composition, content, and aesthetics.