Will Art NFTs replace tangible traditional art?
The peculiar yet astounding market for Art NFTs has seen a 2100% surge in sales, a feat that remains unknown to many.
Mike Winkelmann, an American digital artist, famously know within the industry as Beeple sold his NFT for $69 million on 11th March 2021. This seemingly revolutionary transaction was carried by “Christie’s”, an auction house responsible for the sale of Leonardo da Vinci’s Salvator Mundi for a whopping $450 million. Beeple’s entry into the all-exclusive Christie’s club had raised one question in particular.
Will Art NFTs replace tangible traditional art?
The answer is quite simple- No. Traditional art aside from providing illustrious pieces of art that capture aspects of history often lost can actually be a great way to swindle your money away from Uncle Sam (or the government of the country you reside in). In defense of NFTs, they can be a great way for crypto whales to avoid paying capital gains tax. However, tangible art opens up a new realm of possibilities.
A wealthy individual may purchase a painting for $1 Million and end up receiving a tax cut of $3 Million because of that painting. By befriending appraisers and dealers, the individual can ensure that their paintings rise in value. The individual can then proceed to donate the now inflated art piece to a museum and receive a tax deduction on the inflated price. NFTs can never truly replace tangible traditional art until it reaps the same benefits, which seems unlikely since Ethereum (Crypto used for buying/selling NFTs) is decentralized.
By Nishant Pratap Singh
