Making the most of art as a digital asset – The Financial Express | Jewelry Dukan

By Asif Kamal

Art is considered one of the most exclusive asset classes in the world. With an estimated $65
With billions in annual sales worldwide, the art market is a sizeable and popular asset class
choice for investors.
However, the traditional fine arts have faced significant obstacles to the up to this point
average investor dealing with high ticket sizes, dependencies on exports, galleries,
Auction house fees, long holding periods and maintenance costs.
On the other hand, art offered as digital assets like NFTs is far more viable.
NFTs offer a lot and more convenience than traditional modes as they can be embossed,
sold and undeniably distributed. NFTs have benefited buyers and creators and are growing in importance
Momentum in the world of fine arts.
Blockchain technology and NFTs are on the rise
The advent of blockchain technology allows artworks to be divided into multiple parts
(Coordinates), giving people access to various paintings depicting a part via NFTs
of property. With a small initial investment, you can buy an exclusive piece of art and liquidate it
at any time in the secondary market. The ability to show that the painting is real and who
owns, this will always be possible thanks to the storage of all transaction data in the blockchain.
Blockchain is opening up a new global audience without physical borders.
NFTs make ownership of art transparent and easy to trace because they have one
additional layer of security and provenance verification process. The New Age mechanism enables
Access for everyone to make investments in tokenized assets. When assets are tokenized
With an NFT, ownership can be transferred between individuals more effectively and efficiently.
A new investment opportunity
Investors are always interested in new ways to diversify their portfolios through investments
Stocks, mutual funds, fixed deposits, etc. Art has beaten these conventional assets
Decades and is open to public investment. There is enormous potential before the eyes of investors
to earn higher (ROIs).
Non-fungible tokens have enabled investment in a wide range of popular global creations. A
new perspective escalates investment in the eclectic artworks of renowned artists such as Picasso,
Banksy, VS Gaitonde, Sacha Jafri, MF Hussain and many more. These NFTs are known
serious, stable and considered solid long-term investments. They also have a good reputation
for growth and value creation, making them safer investment choices.
An advantageous option for artists and collectors

Artists are considering NFTs as an alternative to traditional distribution channels. One of
The main problem that artists have grappled with over the years is the inability to monetize their artwork. That
The tangibility that NFT’s digital assets have given has enabled artists to sell their paintings along the way
while simultaneously establishing their reputation and presence in the art world.
For example, graphic designer Beeple sold an NFT for $69.3 million, a record price for a
Artworks at auction by a living artist.
In the traditional art market, artists only receive a referral after the first sale of their artwork.
If the artwork is resold, you will not receive a share of the proceeds. As a result artists
only recognize a small percentage of the true value of their work due to lack of royalties
payments. In the history of fine arts, there has never been a chance to receive anything
Sell ​​royalties or part of the paintings.
However, artists can now automatically receive royalties on any future resales of artworks in this case
of digital assets. On the other hand, collectors can partially sell artworks and keep the rest
in their wallets to redeem at a higher price in the future.
The central theses
NFTs remove and subsequently offer all the limitations that the visual arts have traditionally faced
investment opportunities. These serve as a perfect investment opportunity for aspiring buyers who
want to invest in art that has been appreciated over the years.
Thanks to the accessibility, fractionation of works of art and above all the provision of
NFTs earn royalties and are navigating a shift in the arts and investing landscape.

The author is the founder and CEO of Artfi

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