The explosion of cryptocurrency has produced numerous extensions into the world of finance, art, investment, and more. All of these off-shoots of the crypto-world have people’s heads spinning.
There’s a lot of potential in these areas, though, so it’s important to learn about them. One new area is digital artwork and NFT crypto art. We’re going to take a look at these ideas today, giving you some insight into the reality of online art pieces and how to get your hands on them.
So, what is crypto art?
What Is Crypto Art?
To contextualize crypto art, you need to understand the fundamentals of cryptocurrency.
We won’t get too into the weeds on this one, but it’s important that you understand how transactions are documented in the blockchain. Essentially, a transaction occurs with its own digital marker.
The blockchain is the set of transactions that exist within the history of the digital currency itself. These transactions stack on top of each other and need to be cohesive for another transaction to get marked on the ledger.
In this way, nothing can get hacked or altered because each transaction needs the perfect and accurate history of the ledger to move forward. If something is off, the transaction is null and can’t continue.
When the transaction takes place, it has its own marker and gets wedged into the blockchain forever. It’s singular, and it can’t be altered.
NFTs, Digital Art, and The Blockchain
A non-fungible transaction (NFT) is the way that you acquire crypto art. When you purchase crypto art, you need to use a cryptocurrency, and you have to do so with an NFT.
The NFT is just like any other transaction, except that it gets a place in the ledger just like any other cryptocurrency exchange. That transaction includes buyer and seller information and solidifies the possession of the digital art until someone wants to sell it for themselves.
Why Would You Invest in NFT Crypto Art?
It might seem silly to invest in a virtual work of art. You can’t hold it, and there’s nothing stopping other people from seeing it, right?
That’s correct, except that nobody else has the potential to own that work of art. You’ve got ownership, thereby giving you the right to sell the art when it appreciates. As you know, it doesn’t take long for something like a Tweet (which is digital art) to go viral and pick up a lot of notoriety.
Imagine if you bought an interesting tweet for $20, then it turned out the tweet had an integral part in the trajectory of a politician’s career. You could resell that information at an enormous profit.
You can click here to look at other options for NFT art and different digital mediums for you to invest in.
Want to Learn More About Cryptocurrency Investing?
So, what is crypto art? It’s quite possibly the way that art of the future will get bought and sold. It’s also a great investment opportunity.
We’re here to help you educate more about it. Explore our site for more ideas, find cryptocurrency opportunities, understand the blockchain, and a whole lot more.
