Explainer Series: Are Art NFTs a Good Investment?

Non-fungible token (NFT) art is soaring in popularity, thanks to the multitude of benefits it offers buyers and artists. The term ‘NFT art’ can refer to any digital artwork, including physical art pieces converted into a digital form.?

For collectors of art, NFTs hold tremendous value since their provenance and ownership are public and can be authenticated via the associated blockchain technology. They are truly revolutionary in that they make for a secure way for buyers to store and trade digital art pieces and prove ownership. There are, however, a plethora of other reasons that make NFTs an excellent investment for art enthusiasts, new and seasoned alike.

Established ownership and authentication

Perhaps the most promising aspect of NFT art is the underlying blockchain technology which establishes ownership in a completely secure way. The trade is registered on a public ledger that holds all transaction records, which brings transparency to asset ownership.

Since NFTs are stored on a blockchain, ownership data is immutable and cannot be changed or tampered with. This means NFTs are far easier to authenticate than physical art.?

Buyers purchasing art pieces offline and from online sellers often run the risk of ending up with a copy. NFTs solve this issue that has long plagued the art world; the blockchain holds the complete history of the art piece and provides a way to verify authenticity.?

A unique opportunity for art ownership

In the world of traditional art, it is usually renowned artists who find the most appreciation for their works. Their works also generate interest during auctions and secondary sales as collector demand grows. NFTs, on the other hand, afford a unique opportunity to bring new, untapped art to the fore. This makes NFTs an excellent option for collectors interested in expanding their horizons and supporting upcoming talent.?

NFTs are democratizing access to art ownership like never before. In that sense, NFT buyers are investing in not just art pieces, but a revolution itself.?

A prime difference between NFT art and traditional physical art is that NFT art is always available publicly. This means these works can be valued and re-valued much more frequently than traditional artworks that are kept housed in a private collection for years.

The value of an NFT art rests on the age-old laws of supply and demand that govern other assets. With a growing community of NFT collectors and buyers, demand is gradually increasing with time. As more artists embrace NFT art for their creations, the supply is rising in tandem. Thus, NFT art is a good investment for art collectors with a long-term horizon.

NFTs are ushering in a whole new era for digital art ownership. At TheUpsideSpace, we’re building a community of art lovers, curators, and artists to harness the potential of this promising technology. Join us on our journey!