In March 2021, the work “Everdays: The First 5000 Days” by Beeple (42) went over the table for 69 million US dollars at Christie’s. There was a lot of murmuring: How could art that is purely digital be sold for such a sum? The American graphic designer and digital artist, whose real name is Mike Winkelmann, joined Jeff Koons (68), David Hockney (86) and Jasper Johns (93) in the ranks of the top 4 most expensive living artists.
NFTs are traded in the millions today. Recently, the niche market on the Internet has experienced a real hype: pictures have been traded for cryptocurrencies. For many, a futuristic and modern view of art. And we ask ourselves: Is this what the future of the art market will look like? “At the moment we are certainly still in the midst of a big hype that has led to these incredible prices – in my opinion that will definitely change and put into perspective,” warns Sabine Himmelsbach (57), Director of the House of Electronic Arts (HEK) in Basel. Even if the price for Beeple’s work is certainly lifted, Himmelsbach is pleased that pioneers of digital art are now experiencing a new appreciation.
Sabine Himmelsbach has been director of the House of Electronic Arts (HEK) since 2012. After studying art history in Munich (D), she worked for galleries in Munich and Vienna (A) from 1993 to 1996. In 1999 she took over the management of the exhibition at the ZKM | Center for Art and Media in Karlsruhe (D). From 2005 to 2011 she directed the Edith Russ House for Media Art in Oldenburg (D). In lectures and texts she works on topics of media art and digital culture.
What actually is an NFT?
For everyone who only understands the term NFT train station, Himmelsbach explains: “The abbreviation stands for non-fungible token. It is a non-fungible digital asset that demonstrates the uniqueness and authenticity of the associated files.” This does not necessarily have to be a work of art, but can also be a simple image, text or video.
It differs from other assets, such as the cryptocurrency bitcoin, which is interchangeable as all bitcoins are the same. «For NFTs, the technology associated with a blockchain is used to offer digital systems as unique items. Digital works of art can thus be transformed into independently tradable virtual goods, which was previously not possible,” explains the expert for media art and digital culture.
When explaining crypto art, terms are used that are not easy to understand. You hear about blockchain again and again. These can be thought of as an expandable chain of data, somewhat like giant hard drives. Himmelsbach says: “It’s a decentralized, public database that works as a distribution medium, as well as a payment platform and authentication tool.” In the end, you buy a certificate of authenticity, proof of ownership of a digital file. There is no such thing as an original in the digital world, since digital files can be copied. “Owning the NFT of a work clearly identifies the buyer as the owner,” says the HEK director.
The allure of digital art
Because art is alluring and attracts a lot of people, it provides the best fundamentals for the crypto market. Art is and remains a popular investment object. Young people in particular rely on making a profit on the resale of art.
In the digital context, works by artists are paid for with the cryptocurrency Ethereum. If you want to buy art on the Internet, you first have to buy cryptocurrency. The prices of NFT art are therefore also influenced by the price fluctuations of cryptocurrencies.
However, Himmelsbach believes that there are other reasons for the appeal of owning crypto art: «On the one hand, the pride of being the owner of a digital work that you can brag about among friends, for example, is certainly addressed. On the other hand, I think the incentive lies in the appreciation of digital culture and the development history associated with it, which above all connects many collectors from the crypto scene with these works – i.e. memories and important works of a culture with which one grew up is and ultimately shaped you too.»
Artists can control sales themselves
As in the real world, there are significantly more big male names in the crypto art universe. But Himmelsbach assures: “There are definitely a lot of women in digital art – certainly also because of the relatively easy accessibility of technology today and the openness of the medium.” As an example, she cites Addie Wagenknecht (41), who studied IT before starting her artistic career. “Her art deals with the influence of technology on society and so it was a logical step for her to locate her art in the digital realm.”
Entering the digital world as an artist is not always easy, which is why Himmelsbach advises: “You should always remain authentic and deal with the ideas and topics that really move you personally.”
The digital world offers advantages for artists. NFTs give them access to the art market because they can sell them themselves directly via online platforms. The expert for media art and digital culture says: “That means they are independent of galleries and can control their sales themselves. So there is no longer a classic ‘gatekeeper’.”
Above all, the newly developed niche brings artists one thing: more freedom! Because in future they will no longer have to give up money, and they will no longer bend over backwards in order to comply with the specifications and to please the gallery owners. Authenticity regains the upper hand.
The whole thing has a small disadvantage: artists have to be very active and advertise their works themselves, because according to Himmelsbach, in the end, the level of awareness or the network decides on the sales proceeds.
Are NFTs a thing of the future?
One quickly realizes when looking into the world of crypto art that NFTs are a very complex topic. Their effects are yet to be seen. “As I said, I think that the price level will be put into perspective, but with the blockchain a new key technology has emerged that promises more decentralization, self-determination and transparency,” says Himmelsbach with a view to the future. The blockchain-based token economy is something that will remain secure and will experience new applications.
But the crypto art still has room for improvement, because there is a lot to improve. “I have the feeling that NFTs are currently looking less at the quality of a work and more at the record sums that are currently being achieved,” the HEK director is convinced. Unfortunately, this often obscures the need to talk about questions of composition, content and aesthetics.