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What is NFT How was Beeple’s 10-second video sold for millions of dollars?

The videos of digital artist Beeple, whose real name is Mike Winkelmann, began to be seen as new works of art in the virtual world and valued by millions of dollars.

The blockchain-verified videos, which act as digital signatures and thus confirm who they belong to and whether they are original, have become the center of attention for collectors.

This type of artifact, which creates a new type of digital asset, is known as ‘Non-fungible Token’. World famous auction hall Christie’s also started to auction NFT assets. Beeple’s video was also sold through Christie’s.

What is NFT?

Unlike dollars, stocks, bitcoins or gold bars, which are ‘changeable’ assets, ‘immutable’ NFT assets represent each unique and unique item. In other words, the bitcoin in your hand and the bitcoin in someone else’s hand have the same value. However, consider that each bitcoin has a different value. Then this is no longer a unit and a means of transfer. This is the case of NFT assets. Although there may be many of the same thing, the originality and ownership of one of them can be precisely known.

Examples of NFT are digital artworks, sports cards, virtual pieces of land found as domain names and IP addresses on the Internet, or wallet names used for cryptocurrency.

Their values rose during the epidemic period

The popularity of these types of digital assets grew exponentially during the epidemic. In this area, investors have tended to invest large sums of money into things that exist only in the virtual world.

At this point, the blockchain has become a tool that can unquestionably determine who the actual producer and current owner of a virtual product that can normally be copied an infinite number of times. This started to change the traditional concepts of originality and ownership. That way it became more desirable to have something.

Rodriguez Fraile, who was the first to know the work of American artist Beeple and bought it because she liked it, answers the question as to why she did this:

“You can go to the Louvre Museum and take a picture of the Mona Lisa and have it on your phone, but it has no value. Because that digital version has no origin or history. But if you can prove who is behind that digital data and who it belongs to, that’s a lot of it. makes it very valuable. “

Made millions of dollars

In Beeple’s computer-generated 10-second video, a giant Donald Trump figure covered with slogans falls to the ground and shatters. In October 2020, art collector Rodriguez bought this 10-second short video using blockchain for $ 67,000.

Rodriguez could have watched this video for free on the internet if he wanted to, but the collector, who saw the video as an NFT, suddenly led to the perception of the video as a real asset. Different collectors and investors turned to the video, and Rodriguez ultimately sold the same video on blockchain last week for $ 6.6 million.

“It makes sense for those who spend their lives in the virtual world”

Monthly sales of the OpenSea platform, a free market environment for NFTs, reached $ 86.3 million in February. A year ago this figure was around $ 15 million.

“If you spend 10 hours of your day in front of the computer and in the virtual world, then virtual art and virtual values start to make a lot of sense,” Alex Atallah, one of the founders of OpenSea, told Reuters.

Experts warn that there may be a rapidly falling bubble when the NFT market rises.

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