Is it a good idea to buy NFTs?
Is it a good idea to buy NFTs?
I will start by answering another question that seems to be the same, but it is not, and for this question I do have a clear answer: Is it a good idea to invest in NFTs?
The answer is NO. An NFT (if you ask any banker they will tell you) is a high risk product, like all cryptocurrency related products. Surely you have seen the news of the designer who has sold an NFT for millions of Euros, also the one who has earned a lot of money investing in bitcoins, but surely there are many more people who lose it. Whoever uses NFTs as an investment is used to invest in risky products, knows it well and observes all the buying and selling movements of each NFT to guess future movements. All that information is public and in every NFT creation platform, such as Opensea or Superrare, those movements are publicly shown, as they are the grace of these products, but I do not think it is so easy and my personal opinion (based on my personal experience with other digital product platforms) is that the wealth of a few is based on the ignorance of the majority that buys driven by sensationalist news (like the one who has sold an NFT for millions, yes of course, to his friend the inventor of cryptocurrency ATMs) and by half-truths (lies at all) such as that you are the owner of what you buy, when the intellectual property of the NFT you are buying belongs, and will always belong, to the artist, to his family or is assigned through a complex Copiright contract that surely is not attached to any NFT, this aspect is obviated when selling an NFT that remains in the limbo of doubt, which unscrupulous sellers of NFTs, or any other digital product such as cryptocurrencies, take advantage of.
So my answer is clear, if you want to invest your money put cryptocurrencies, or NFTs, at the bottom of your list, and if you finally decide to invest, start investing small amounts and only that money you can do without.
Now I will answer the question with which I title this article: Is it a good idea to buy NFTs?
The answer is: it depends.
First you should know that an NFT does not necessarily have to be a work of Art, any digital file can be converted into an NFT. Actually NFTs are collections of things that interest very specific audiences, comic strips, manga characters, songs, matchboxes, etc... ad infinitum. These NFTs are usually grouped in collections containing hundreds of items that resemble each other to the point of boredom, but each one is accompanied by a history of purchases and sales that defines its price, just like stock market shares, even the entire collection is labeled with the total value of all the pieces it contains.
You will use this information to know the real value of an NFT and its future sales possibilities. It is also true that if you want to sell your NFTs you should work a lot on social networks and meet many potential buyers who might be interested in your NFTs, of course you will have to buy NFTs from them as well. The main social networks where these buyers move are Twitter and Instagram.
Okay, we already know where we could sell my NFTs if I finally decide to buy them.
But, as I said before, it is not a good idea to invest in NFTs if you don´t know the ecosystem you are going to get into. By ecosystem I mean the subject of the NFT and the collection to which it belongs, each collection has its own demand and its own price movements.
Here I am going to talk about the Art ecosystem, but not about Art in general (Art can be considered anything you can imagine), but about Art that passes through the filter of a gallery. Is one work better than another just because it is in a gallery? No, of course not, what makes them different is the fact that they belong to a collection that has been selected by the direct@r of the gallery, it is his criteria what makes it a work of Art, it is no longer only the opinion of the artist, but there is someone else who has seen the potential of a certain piece as a possible future work of art.
If you have looked at the NFTs of artistic works as an investment possibility, it is because there is something special in you, you like Art and you surely follow the work of some artist. You will know then that the artist´s work is revalued with the passage of time (or not), with his work and above all with his communicative successes, if the artist is better known his work will probably rise in value (this is not always the case). If you buy a physical painting, whether it is a unique work or a limited edition signed by the artist, its value will depend on the value of the rest of the artist´s work in the market and the media impact of the artist himself. If you were already interested in the art world before, you already knew all this, but if you didn´t, it is interesting for you to know it and understand the peculiarities of this world, of the Art-artist-gallery ecosystem.
I have recently had the good fortune, as an artist, to establish a relationship with the gallery Babel Arte (Murcia) and with its director Javier Cerezo, who I also consider a friend, with whom I have the opportunity to talk extensively about all these issues and we agree on the commitment to offer the gallery´s customers works with exceptional quality, so when we undertook to face together the challenge of turning into NFTs part of the artistic heritage of the gallery we proposed to do it with this same spirit of the highest quality.
I consider it necessary to tell you all this because it explains this part of the article, let´s go back to the final question: is it worth buying the NFT of an artwork?
The NFT is for us (Javier Cerezo and me) a digital certificate, a signature coined by the gallery, which authenticates that the digital content of the NFT comes from a work of the gallery´s collection, that the copyright of the painting does not belong to you, as it would not belong to you if you had the physical work, you could not reproduce it for commercial purposes without the author´s consent, but you can sell or transfer it to another person or entity, as with the NFT, you are the owner of a unique digital file accredited by the digital certificate of the NFT minted in the gallery.
In itself, the NFT file is an artistic work with its own entity, a fully digital entity, whose nature we still do not fully understand. A certain entity, as can be a numbered and signed print of the artist, and as a unique item, certified by the unique nature of the NFT, its nominal value should be linked to the artistic trajectory and the price of the artist´s own work.
If you are interested in the work of an artist, and you think that in the future his work can be traded, the NFTs give you the possibility of obtaining a digital certificate that will link your economic future with the potential of the work of the artist you like. If this happens your foresight of the future of the artist´s work will be rewarded, if not, do not despair because the work of artists is often appreciated many years later. Think of it as a long term investment, also if you buy FTs from emerging artists, that few people know, there is a chance that their career will skyrocket in the future and the value of your NFT will skyrocket as well. Of course take all the precautions and recommendations I have given you before about cryptocurrency based risk products, but in the case of artistic NFTs let your sensibility and your heart advise you, but always be cautious and moderate in your investments in Art NFTs.