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What is NFT Art? A 2024 Guide

As experienced art consultants we have an understanding for how to spot talent in the ever-evolving digital art space. In this article, we offer an insight into what NFT art is and why it is worth investing in. We’ll also talk about how to ensure optimal quality and value retention when choosing NFT art.


‘Digital Renaissance’ by notsocommon merges digital and classical art.


Digital art has pioneered the way for non-fungible tokens (NFTs), with the use of digital technology in the creative process. The first use of the term ‘digital art’ was in the 1980s in connection to an early computer painting program and can be described as anything produced or made on digital media, encompassing Video, Generative and Interactive Art. Digital art is usually stored on a USB stick, hard drive, a processor, the cloud, or a social art platform and can be stored at your house, gallery or the vault - which can be accessed from any connected device.


Digital art has revolutionised traditional art forms, extending the reach of creative possibilities. The difference between an NFT and digital art piece is the underlying blockchain technology that functions as proof of ownership leading to a more secure form of digital art.


What is NFT Art?


A growing innovation and investment opportunity in the digital art world.


As investments in art evolve, NFT art has become an opportunity for artists and buyers alike to venture into a modern approach to digital artworks. NFTs are blockchain minted artworks, bringing art to life from a unique perspective, as they are one-of-a-kind. NFTs come in many forms and include anything considered as art, such as a photograph, physical artwork which has been converted into digital form or a picture made with digital media.


Can NFT art be copied?


Unlike a jpeg or other digital art files, an NFT art piece can’t be stolen or copied easily due to the verification of ownership. A record of every purchase is stored with a unique encryption code, adding a greater level of authenticity. Like a physical artwork, for example, anyone can buy a Picasso print, but only one person can own the original. For NFTs this means the same; a screen shot, or download will not hold the digital signature assigned to the NFT, therefore, the copy does not hold the same value.


‘Eternal Peace’ by notsocommon is a Buddhist inspired NFT.


Why is NFT art valuable?


NFTs grant access to art ownership on a digital level, and it is a promising venture. They have the potential to be profitable and are fast becoming the future of digital fine art collecting. There is a steady increase expected in the NFT industry, due to the core power of NFTs; authentication. Deemed Collins Dictionary word of the year in 2021, the upcoming possibilities are boundless and exciting developments will continue to be explored in the digital world.


Numerous artists are creating NFTs, giving buyers an alternative option to traditional art collecting. Furthermore, a handful of artists are offering maximum flexibility, with buyers being able to pass on their entitlement to the NFT, for the original physical artwork.


Part of Damien Hirst’s first NFT collection, ‘The Currency’, corresponds to 10,000 unique physical artworks, and famously allowed buyers the option to trade in their NFT for the physical artwork, with the non-exchanged piece being destroyed.


Is NFT art a good investment?


Although scepticism has been raised regarding the value of NFTs, it has become a booming and robust market. If you wish to be successful, you should approach the NFT market without speculating the risks and opportunities, but instead from the lens of creation and collaboration.


By owning the first NFT by an established or upcoming artist adds excitement and the potential for lucrative value. The earlier you invest, the bigger your return in investment is likely to be. By discovering a project early might lead to you being added to a whitelist, which provides exclusive access and with enough demand, the art may not make it to public mint. However, it is important to be conscious of what NFTs you invest in due to the unpredictability of digital art. Therefore, investing in quality pieces is crucial, and just like traditional forms of art, where quality insurance is evident in the brush strokes; crisp lines, detail and colour are all important elements to consider with NFTs. An extra dimension worth exploring is movement, as this can add value due to the time and labour taken by the artist.


Carefully curated collections of NFT art by successful curators tend to hold more value in comparison to un-curated collections, as the curator has a reputation to uphold. Another consideration could be if the artist is part of an upcoming exhibitions and has a future collaboration planned, as this will increase the merit of the investment.


NFT collections are often made up of thousands of individual pieces of artwork, which, unlike traditional art, can have a positive impact, as an increase in unique holders can further the reach of a project. An active project with a good number of buyers and sellers will ensure the value of the NFT is not stagnant, as it retains interest.


It is equally important to consider the risks of diving into the NFT market. The pricing is volatile, as NFTs are still considered a relatively new concept, and therefore, unpredictable. High minting costs are important to consider, which is the process of publishing your NFT on the blockchain so that it can be sold, bought, and traded. Minting NFTs currently stands at a low rate, however future costs may rise.


Ultimately, NFTs offer a high risk, high reward investment, with possibilities to provide returns up to 10x greater than the original investment. Nonetheless, upwards of 80% of NFTs may not yield positive returns, so it is important to be intentional when deciding who and what to invest in.

Which NFT art is worth buying?


We have carefully curated a handful of NFTs to act as inspiration, with each art piece representing the very best of NFTs.


Two of 24 artworks entitled ‘Small Worlds’ by CTSLIM AI Generative. The artwork changes every hour to represent the different seasons, with 24 hours being a year.


‘Maria Bartola #1’ portrays the 16th century Aztec Princess by feminist group, Rewind Collective. They pay homage to overlooked women and minorities throughout history, celebrating their achievements in the ongoing fight for equality.


‘Wave’ by Joacim Svedlund is an autonomously updating artwork switching between day and night.


‘Ninfe Sátiro’ by Gala Mirissa, portrays the narrative of a woman’s mind being full of art, and thinking about the 1873 oil painting Nymphs and Satyr by French painter William-Adolphe Bouguereau, one of the greatest exponents of ‘bourgeois realism’.


‘Marvelously Bumpy’ depicts a texturised terrain by Doğan Demir creating a 3D relief effect.


Conclusion


NFT art can be a great investment for anyone interested in digital art, the future worth they possess and the opportunity to own a cultural asset. Compared to the traditional art market, NFTs offer benefits such as viability in authenticity, transparency, and royalties for future sales. They can be a cheaper, more accessible way to collect art as they are sold at a range of price points across several blockchains, with affordable pieces even including some of the biggest NFT artists.


With uncertainty around the future of NFTs, careful consideration is needed when deciding if an NFT is the right investment for you. Alternatives to NFTs include digital art,


At Artelier, we specialise in investment grade art by emerging artists on a digital art level. If you would like assistance with your NFT art investment why not get in touch to set up a call with one of our art consultants today. If you are interested in a different type of art or still unsure whether to invest, read our article here.


Happy investing!


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