If someone told you at its 2009 launch that Bitcoin would be worth a fortune in 2021, you probably would have laughed at them. And yet, it’s happened. Within the decade following its release, Bitcoin has rocketed to a staggering $62,000 per coin.
Making money on Bitcoin is no longer a weird, techie pipe dream. It’s a reality for many Bitcoin miners. Still, for everyday people, using cryptocurrency–digital “tokens” you can exchange for goods and services online–in lieu of money may seem unusual.
But cryptocurrencies have given rise to something even stranger than digital money in recent months. And that something is what’s known as Bitcoin art.
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Bitcoin art explained
Bitcoin art, or crypto art, is a type of digital-only art published or recorded on blockchain networks. If you’re not familiar with blockchain networks, they are essentially decentralized databases that store information in “blocks” that are literally chained together.
The trend of buying and selling artwork codes has exploded in popularity ever since January 2021, partly due to enthusiastic moguls such as Mark Cuban praising the virtues of digital art. You can even argue that digital assets represent the future of digital assets.
But knowing that Bitcoin art can be valuable doesn’t make it any easier to understand what it is. To that end, here are the five most frequently asked questions about Bitcoin art.
Where can I buy and sell Bitcoin art?
Before you start to buy and sell digital art, you have to decide which blockchain you want to go through. A couple of examples include Ethereum and Bitcoin. After you select a blockchain, you can then pick an NFT marketplace for trading purposes. Popular NFT marketplaces include:
Note that most marketplaces impose a tax on digital art transactions, as well as other fees for changing dollars to cryptocurrency. You might want to buy Bitcoin artwork over the weekend when fees are lower.
How do you make Bitcoin art?
To make Bitcoin art, you first need to create digital art. To do this, you can use any platform that allows you to save a compatible file which is variable by marketplace. Two platforms that are worth checking out include Adobe Photoshop and GarageBand. You can even just take a screenshot of your favorite tweets.
Then, you upload your digital art to an NFT marketplace, such as the ones mentioned above.. Set your price, add a description, hit “create,” and voila! You’ve created Bitcoin artwork!
What’s the difference between Bitcoin art and NFT?
Bitcoin art is a type of NFT, which stands for non-fungible token. Non-fungible tokens are unique digital commodities developed and stored on a blockchain, such as Bitcoin or Ethereum.
Can Bitcoin art be replicated?
When you buy Bitcoin art, you’re not buying exclusive rights. In fact, after you buy a particular piece of Bitcoin artwork, the artist may still retain the copyright and reproduction rights.
At the same time, anyone with an internet connection can view, download, and copy Bitcoin artwork–even though you paid for the file. That’s because what you’re really buying is ownership of the art.
Think of it like this: anyone can buy a print of the Mona Lisa. But only one person–or rather, one museum–can own the original painting.
Is buying Bitcoin art risky?
Many investors have questioned the safety of cryptocurrencies. But what about digital artwork?
The truth is that any investment is risky, even if the risks are small. This is especially true of assets that aren’t tangible, such as Bitcoin pixel art. But what you mean by “risky” may vary.
If you just want to own a piece of unique artistry, Bitcoin art is no more risky than other types of pixelated files. But if you want to buy and sell digital art, there’s no guarantee that your “asset” will retain its value over time.
The best features of Bitcoin art
Due to the blockchain, Bitcoin art offers unique features to both its creators and its owners.
For creators, one of the best features of Bitcoin art is that they are non-fungible tokens. Bitcoin tokens are fungible–meaning that one Bitcoin is the same as another –whereas NFTs are… Well, not fungible. Each NFT links back to its original author via its storage on a blockchain. Thus, online digital work can’t be faked in the same way as an oil painting or other form of physical art.
Anything can be art
When you think of art, you probably think of music, paintings, sculptures, or even movies. But Bitcoin art takes the concept of “art” a step further.
These digital collectibles can take the form of photos, music, sports cards, memes, Twitter posts, and even GIFs. As such, you can also display them in a variety of ways, such as with a speaker, on your TV, or in a digital picture frame.
Indestructible and non-interchangeable
Since you buy and sell digital art via “smart contracts,” it’s impossible to lose or delete NFTs. And because trading NFTs is often non-interchangeable, collectors can rest assured that they maintain sole ownership of their Bitcoin art.
Advantages & disadvantages of Bitcoin art
Bitcoin artwork is fun and maybe a little weird, too. Naturally, creating and trading digital art comes with its own set of advantages and disadvantages.
Advantages of Bitcoin art
One big advantage of Bitcoin art is that the use of blockchain technology requires an incorruptible “ledger” system. Using blockchain improves transparency, negates the appearance of fakes, and allows everyday people to buy and sell their favorite digital artwork from anywhere. Additionally, Bitcoin art provides another way for the art community to express and share their work with the world.
Disadvantages of Bitcoin art
As advantageous as Bitcoin art is, it is also a little difficult to understand or use without doing a lot of research. And while an original NFT can’t be stolen or recreated, artists in other mediums have reported pictures of their work selling on NFT marketplaces without their consent.
Plus, even though you may buy or sell digital Bitcoin artwork for thousands or even millions of dollars, all you really own is the source code. Anyone with a computer and Google can find and download the artwork you paid for–for free.
Bitcoin art is fun but a MoneyLion account earns interest
What is Bitcoin art? Simply put, it’s the natural–and expensive–convergence of the digital blockchain age with modern art.
But if you’re looking for a less volatile and copyable investing approach, consider signing up for a customized MoneyLion investment account. For only $1 per month, you can start investing as little as $5 with:
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