Buying Artworks with Cryptocurrencies
June 21, 2018
With the development of crypto signals and cryptocurrencies, purchasing art using bitcoins is now possible with the validation of blockchain. Who would have known that cryptocurrencies would also raid the art industry? Some artists see the exchange or trade of art with cryptocurrencies as an opportunity and approach to drawing in new art collectors especially those who are technologically inclined and as a fundraiser from investors as well. With the authentication of the blockchain, it will secure the provenance of the art piece and the vendor’s proprietorship of the art.
Artworks Purchased with Cryptocurrencies
In January 2018 at an Art Stage in Singapore, four paintings were purchased and procured with cryptocurrencies. The exhibit was the city’s first major art fair that embraced and implemented the idea and system known as Aditus. This made possible the use of several virtual tenders as a preference for payment of an artwork.
Many independent art galleries are now flowing with the movement. For instance, Joe Nash, a collector who is based in Singapore, is putting some of his collection of Australian art for sale via the Visionaire Gallery. The said gallery welcomes cryptocurrencies as a mode of payment. Joe Nash is a stockholder of fintech or financial technology, a modern innovation that intends to vie with financial methods that are traditional in the provision of financial services. For 12 years he had been purchasing artworks and other artistic renderings, and about a year acquiring cryptocurrencies.
“I have a dual purpose. First, to give exposure to Australian art, including works by major aboriginal artists. Second, I hope that giving access to cryptocurrencies will draw in technologists who have not bought art before.” – Joe Nash
Art creations that are valued in cryptocurrencies have to be frequently changed or revalued since cryptocurrencies are volatile. From January 2018 to April 2018, bitcoins’ value dropped 65% while the value of ethereum tumbled by 73%. For artists who accept cryptocurrencies, its volatility or instability of value is an additional financial threat for them.
For Nash, the instability or the volatility of cryptocurrencies isn’t any trouble for him. “My paintings are priced in three anchor currencies: euros, US dollars, and Australian dollars. It is easy to check the real-time exchange rate against cryptocurrencies.”