You might remember Beeple's video that sold for a record setting $69M at Christie's, well this new form of digital art trading has started somewhat of a revolution in art sales. However before we can address the opening of this museum, an explanation on what NFTs are might be of use.
What is an NFT?
Standing for Non-Fungible Token, NFTs are digital works that can range anywhere from drawings, to music, videos and virtual stickers.
NFTs are changing the way digital art is being traded because while owning a unique painting or statue is pretty straightforward, buying a piece of art made for digital use is a bit more of an abstract concept as it can be infinitely and perfectly duplicated for anyone to enjoy, oftentimes for free.
To make a complicated chat about Blockchain simple, the buyer of an NFT becomes the owner of the original artwork and its token in the blockchain. A bit like if someone were to buy an original Picasso, even though there would be millions of print copies out there, they would remain the owners of the "real" one, even if, in the case of NFTs, there is no difference between the original and the copy.
However, just as with physical art, ownership of the copyrights and reproduction rights are still left to the artist (unless they decide to sell them as well).
Buying an NFT is akin to buying the bragging rights to a piece of art, as it does not provide a different experience or appreciation of said piece. It however provides a market model for trading digital art as its very nature does not compute very well with a traditional art market.
With tweets and YouTube videos being sold as NFTs, the line between art sales and an economic bubble is being blurred, which brings up the question of what is that New York museum going to look like?
Sky-high museum
The building in which this museum will set up shop is a brand new 84-floor high building, hyped as being the world's "skinniest skyscraper". Aside from hosting the museum, it will also house a relay to connect all of New York to cryptocurrency trading and wireless communication and trading.
The aim behind the museum is not so much to solely display art, as most of the art that will be featured can be enjoyed from home, but also a great way to promote digital, Blockchain technologies. Rather than focusing on the art itself, it could provide the visitor with an in-depth look at what NFTs are and how they are reshaping the world of digital art.
Pressed by Bloomberg TV on what a digital museum has to offer, Todd Morley, the founder of the museum and owner of the cryptocurrency company Overline had this to say about the concept : "Depends on what you mean by museum, right? The Guggenheim Museum has had phenomenal success at becoming a real estate development tool using culture to develop assets and convene people. So we think there’s that. But we are also very interested in global infrastructure—technology-driven infrastructure. So it gives us the ability to not only allow investment into those areas but to sort of capture the culture of those areas. So it becomes a global ambassador, a digital ambassador, if you will—so why not centrally located in the tallest building in New York?"
No doubt that this museum is a one of a kind concept that is poised to evolve as time passes and interest in NFTs shifts from being a novelty to becoming an integral part of the art landscape. Digital creation is a booming sector and is in dire need of a viable financial model as well as a visible platform, however paying for it with cryptocurrency, as it is often the case at the moment, might put off creators and sellers alike due to the volatile nature of the currency's value.
This museum will undoubtedly be a great test of the general public's interest for such works of art and help it move away from what is sometimes perceived as just a fad for the very rich.
