Are NFT Artworks Any Good?

Artist and provocateur Brad Troemel recently stated in an Instagram slideshow that the present state of NFT art is best defined as "visual dogshit." According to Troemel, the only thing that matters is that these photos can be mass-produced fast without relying on any bold creative moves that may turn off crypto bros.

Throughout much of history, only the affluent and the aristocratic could afford to collect and invest in works of art. As the market for NFT art or crypto art develops, however, more and more institutions, auction houses, artists, celebrities, collectors, and investors are joining in on the action, as they perceive significant returns on their investments in crypto-collectibles and other digital products.

It is not hard to understand what he means when you consider the viral excitement that has surrounded NFT collections. The most popular NFT shows often include randomly generated animations that provide different takes on the same topic, such as a monkey wearing sunglasses or a monkey wearing a gold chain necklace.

In many ways, these creations resemble intellectual property more than works of art. They may be used again and over again for their familiarity, much like Pikachu or Baby Yoda, without ever really giving us anything new. It is also worth noting that NFTs can be used for good causes as well. One of the main examples of this, as readers can see on this site, is that products created with the inspiration of NFTs can be used for funding Ukraine. As the war between Russia and Ukraine intensifies as time goes by, many NFT creators have decided to sell their digital assets or create demanded products incited by the digital assets.

The question of whether NFT or crypto art is a good investment has been answered by the fact that works are being sold at prestigious auction houses like Christie's and Sotheby's and other inspiring pieces are appearing on the markets thanks to the imminent technological transformation of the digital art world. However, you must be familiar with the processes involved in purchasing NFT art or crypto art, as well as all the terminology associated with these transactions. It's a must-have for every serious investor.

Should You Invest In NFTs?

First of all, NFTs are not an asset class, thus the term "investing in NFTs" is misleading. It's not a good idea to acquire an asset simply because it's been tokenized into an NFT, just like you wouldn't buy a vehicle just for the paper title that comes with it.

However, this does not necessarily rule out the possibility of a positive return on investment from purchasing tokenized assets. Finding an attractive item and having the financial means to acquire it are both necessary conditions for potential purchase. Assuming the asset is tokenized, you may be able to make use of the perks that come with NFTs. However, you should also be aware of the dangers associated with investing in NFTs.

NFTs enable the tokenization of real-world assets like pieces of art. In this way, the artist retains exclusive ownership of their work and prevents it from being mass-produced. Thus, it contributes to the scarcity of artwork, which in turn increases the value of each piece.

As was previously said, NFTs have almost unlimited expansion and development possibilities. As an example, in the real estate industry, having the ability to govern and own virtual lands gives you the freedom to do anything you want with that place. You have the option of renting it out or constructing a safe and sound enterprise for doing internet commerce and promotion.

Due to the decentralized nature of the NFTs market, producers may earn money directly from their work, making it an uncommon investment opportunity. By cutting out the need for intermediaries and the charges they demand, NFTs benefit, not just the underlying investors but also the investors themselves. For the same reason, the NFT's original developers might get a fee each time their creation is traded. The NFT market is unique among markets because of its decentralized structure.

The uniqueness of the NFTs is another factor that makes it a unique experience for the investors and the fact that these NFTs can’t be forged makes them even more distinctive and precious. If an artist or seller has a relatively small number of NFTs, the collectibles they sell are more likely to maintain their value. And that's a positive thing for investors in general.

Final thoughts

Through multiple exchanges, NFTs are available to everybody. In a marketplace like Rarible or OpenSea, anybody can mint NFTs with a few clicks. Therefore, you may either buy NFTs from other people or mint and sell your own NFTs as an investment. For those who have the necessary cryptocurrency, NFTs may be purchased. As there are fewer middlemen involved in purchasing digital art, it may be a good investment option for those who are unable to afford "real world" artwork.