The worth of cryptocurrencies or internet money that is encrypted particularly Bitcoin shoot up in value in 2017 which create a frenzy among those who engage in this technology. It might have been a good time for perfect money to bitcoin exchange. Bitcoin, which is the first decentralized digital currency, escalated to over 1,300% the previous year even though it plummeted by 40% in December. On the other hand, Ether, a competitor of Bitcoin, increased in value by 8,000%. It is assumed that when combined, the global value of cryptocurrencies this year may possibly reach 1 trillion US dollars.
The sudden changes in the value of Bitcoin and its byproducts are evidence that these cryptocurrencies are indeed volatile and can be uncontrollable for daily transactions. Nonetheless, because of its decentralized property along with the blockchain technology, cryptocurrencies are progressively influencing more specific sectors of the economy. The art industry is some of them.
The concept of “digital scarcity”
A huge setback with making and vending art is how it can be effortlessly be reproduced and pirated. This is very true for digital artists. As soon as something is reproduced and copied for free, the initial worth of the artwork declines and the potential of a market vanishes. For things to be of worth they must have rarity or scarcity. The technology of Blockchain aids in resolving this for artists by presenting the concept of “digital scarcity”. Digital scarcity is giving out a regulated number of prints and securing them back to blocks that are unique evidencing ownership. Accordingly, blockchain technology and digital scarcity will generate an enormous marketplace for digital art and collectibles o crypto.
For instance, DADA.nyc delivers a decentralized market where you can purchase digital artworks that are limited-edition along with IP protection and evidence of proprietorship.
As stated by the DADA.nyc website, “The DADA art collection becomes permanently embedded in the blockchain and can no longer be modified. This allows a user to verify that there are indeed only a certain number of limited-edition DADA artworks, that the artwork you buy belongs to you, and that it was created by a specific artist.”