NFTs, digital artifactsPosted: March 23, 2021
Somebody asked me* if I have any opinion on NFTs, or if I’d be doing an episode of Stocks: Let’s Talk about them. Truth: I do not understand them. I’m trying to gain insight. Why you’d pay lots of money for “ownership” of a digital artwork, or even stranger, pay $2.9 million for “ownership” of Jack Dorsey’s tweets, I don’t get. I’ve read through a lot of message boards and arguments that tend to cycle through the same stuff:
- why would you own something anyone can look at?
- well what about “owning” the Mona Lisa, anyone can look at that but it’s still valuable?
- why would you need to “own” a Picasso, just for bragging rights, this is same as
- what about Walter Benjamin’s “aura”?
- there’s too much money around
- the art market has always had an element of money laundering
- it’s a speculative bubble, it’s like the Dutch tulip craze (contra: we don’t understand the Dutch tulip craze, there was no Dutch tulip craze)
Here’s my one attempt at an original thought, or at least a thought I haven’t seen before: what if people are speculating is that these early NFTs (Beeple’s art, or Jack Dorsey’s tweet) will someday be valuable as digital artifacts, as early works from a new scene, or even a new kind of art?
There’s a scene in the movie Basquiat where Andy Warhol (David Bowie) flips through some postcards offered by Basquiat. I’ve watched that scene and thought, damn, a Basquiat has sold for $110.5 million, if you had just one of those postcards from back then you could at least trade it for enough cash to buy a sweet beach house!
I’ve also pondered in idle moments whether Madonna, who dated Basquiat, has more wealth in the form of Basquiat paintings than she does in her own music catalog. Surely it’s possible she has four or five of her ex-boyfriend’s paintings lying around, which could equal $100 mill easily. (Worse, what if she destroyed them in a fit of grief or jealousy?)
What if people are just betting that the NFT, or the ownership of the image of a tweet, or something, will someday be valuable just as an artifact or sample from this insane time, a time that was pretty interesting in terms of its invention?
The authentication of art has always been an issue, and a challenge. Consider John Berger talking about how much time is spent proving a Leonardo is a Leonardo at the National Gallery:
The Museum of Fine Arts in Boston has so many Impressionist paintings they don’t know what to do with them all, they’ve got a Van Gogh they keep in storage.
At the time the MFA’s greatest patrons were acquiring art, a Van Gogh wasn’t even that valuable. What was considered valuable art at that time, I once asked a curator there? Stuff like this, she said:
Maybe this is all just marketing spend for crypto/blockchain speculators, as someone suggested somewhere, I can’t remember.
Art speculation is hard! My guess is that NFTs will end up about as valuable as a complete set of 1986 Topps baseball cards, which I once speculatively bought myself as a youth.
Good luck to all the players.
*always funny when someone uses “since people have asked” or “someone asked me” as a setup for writing. In this case I swear I being honest! It was Eben!