Most artists are not making money off NFTs and here are some graphs to prove it – Kimberly Parker These numbers do not show the democratization of wealth thanks to a technological revolution. They show an acutely minuscule number of artists making a vast amount of wealth off a small number of sales while the majority of artists are being sold a dream of immense profit that is horrifically exaggerated. Hiding this information is manipulative, predatory, and harmful, and these NFT sites have a responsibility to surface all this information transparently. Not a single one has. […]
Truly the most shocking thing about these numbers is that they look ordinary. They look just like every other market. Everything about this is run-of-the-mill, banal, predictable capitalism. That is exactly the point. Despite the promises of revolution, equality, and “lifting artists up” this technology has changed nothing: the few people at the top continue to have the greatest amount of wealth.
To be sure, new technology has brought us enormous benefits, but certain aspects, such as speculation in cryptocurrencies, also bring risk. The Nobel Prize-winning economist Paul Krugman, writing in the New York Times, has called Bitcoin “a bubble wrapped in techno-mysticism inside a cocoon of libertarian ideology”.
I missed Van Gogh’s birthday last month, again. I meant to post these links earlier.
Warrior artist – Dublin Review of Books Anyone who dips into Van Gogh’s letters will be struck by how much and how widely he read. He devoured and used books up as he did the people around him, though he never used people in a malicious way. It was just that few could match or live up to his passionate intensity. As Mariella Guzzoni, an independent scholar and art curator, writes: “It should be said . . . that though Vincent cherished books, he was not a book collector. More precisely, he was a book-user. For him, it was not important to physically possess books, but to make them his own.”
There’s more to his story than just him, though.
The woman who made Vincent van Gogh – The New York Times Twenty-one months after her marriage, Jo was alone, stunned at the fecund dose of life she had just experienced, and at what was left to her from that life: approximately 400 paintings and several hundred drawings by her brother-in-law.
The brothers’ dying so young, Vincent at 37 and Theo at 33, and without the artist having achieved renown — Theo had managed to sell only a few of his paintings — would seem to have ensured that Vincent van Gogh’s work would subsist eternally in a netherworld of obscurity. Instead, his name, art and story merged to form the basis of an industry that stormed the globe, arguably surpassing the fame of any other artist in history. That happened in large part thanks to Jo van Gogh-Bonger. She was small in stature and riddled with self-doubt, had no background in art or business and faced an art world that was a thoroughly male preserve. Her full story has only recently been uncovered. It is only now that we know how van Gogh became van Gogh.
It’s a fascinating read, his sister-in-law Jo van Gogh-Bonger was remarkable. Here’s a photo of her from around 1909.
And there were other important women in his life too.
The fascinating lives of Vincent van Gogh’s three sisters – Hyperallergic Vincent van Gogh’s three sisters — Willemien (Wil), Elisabeth (Lies), and Anna van Gogh — are highlighted in the historical biography The Van Gogh Sisters by Willem-Jan Verlinden (Thames & Hudson). The book was originally published in Dutch in 2016; the English version, translated by Yvette Rosenberg and Brendan Monaghan, includes previously unpublished letters, largely the result of research completed after the Dutch version was first released.
Through letters between the siblings, we read that Lies was frustrated that women didn’t have more professional options that were socially acceptable. We learn about how Wil often copied Vincent’s drawings and was his favorite model, and that the two wrote to each other about art and literature and inquired about one another’s mental health. The book draws you in with stories about the siblings’ pursuits of jobs, love, and artistic curiosities, as well as lush portrayals of each family home.
How Van Gogh paid for his mentally ill sister’s care decades after his death – The Guardian Vincent van Gogh remained penniless throughout his tragic life, which ended in suicide shortly after a stay in a mental asylum. Yet two decades later, paintings he had given to his sister were sold to pay for her stay in a psychiatric hospital, commanding such high prices that the proceeds funded years of treatment, according to letters published in a new book.
Willemien, the youngest of Van Gogh’s three sisters, shared his love of art and literature and, like him, struggled with her mental health. While Van Gogh was committed to an asylum after cutting off part of his ear and giving it to a prostitute in a fit of madness, his sister was institutionalised for almost 40 years until her death in 1941.
In 1909, the oldest sister, Anna, wrote of selling a picture that he had given Willemien, enabling her to pay for medical costs: “I remember when Wil got the painting from Vincent, but what a figure! Who would have thought that Vincent would contribute to Wil’s upkeep in this way?”
Speaking of selling Van Goghs, here’s a very realistic/utterly fake portrait of him by the ‘post photographer’ Bas Uterwijk that’s for sale.
I’m still struggling with all this, to be honest. Am I right in thinking that I can spend 20 Tezos (about £100) on something that’s exactly the same as the 1620×2048 .png file I can download if I right-click on the image on the webpage?
At the same time, the NFT backlash has been furious. Highly visible NFT evangelists make unrealistic claims to be freeing artists from the problems of institutional gatekeepers, but there are clearly still problematic dynamics of race, class, power, and gender that shape these markets too, and artists still find themselves partly reliant on social media platforms and traditional institutions to build audiences and accrue value for their work.
It wasn’t meant to be like this, obviously. Here’s Anil Dash, the man behind the technology.
NFTs weren’t supposed to end like this – The Atlantic The idea behind NFTs was, and is, profound. Technology should be enabling artists to exercise control over their work, to more easily sell it, to more strongly protect against others appropriating it without permission. By devising the technology specifically for artistic use, McCoy and I hoped we might prevent it from becoming yet another method of exploiting creative professionals. But nothing went the way it was supposed to. Our dream of empowering artists hasn’t yet come true, but it has yielded a lot of commercially exploitable hype.
It seems to me that the broken art market is still far from being fixed. I wonder what the folks at Sedition make of all this.
Featured image Works by Vincent on exhibition in Antwerp, Belgium, 1914. Van Gogh Museum Documentation, Amsterdam
Curiosity has finally gotten the better of me. I’ve just signed up with Ziglu to buy a tiny fraction of an Ether and an absolutely miniscule fraction of a Bitcoin.
Money, done differently – Ziglu Money doesn’t need to be confusing. Buy and sell digital currency within seconds at great rates. Send or gift both traditional and digital currency to anyone – instantly. Payments in any currency to family, friends or businesses – instantly and anywhere.
I’m not the only one a little curious.
Crypto by the county – how attitudes vary across the country – Ziglu When we commissioned a poll at the beginning of the year to get a view of attitudes towards cryptocurrency across the country, we weren’t expecting such a difference in attitudes between regions of the UK. Londoners are over four times more likely to have invested in crypto than the Scottish; the Northern Irish are 50% more curious about crypto than the East Anglians.
Brits curious yet baffled by cryptocurrency – Finextra Of the three in ten people (31%) curious about investing in crypto, 62% have held back from buying any because they do not understand the market, while 43% say they do not know of a safe way to buy it. However, the nationally representative survey of 2,000 Brits, commissioned by money app Ziglu and conducted by OnePoll, also found that they would invest if they had a better understanding of cryptocurrencies (64%) and mainstream financial institutions start offering crypto to retail customers (36%).
CEO Mark Hipperson is the man behind Starling Bank, and is no stranger to tricky conversations with regulators and investors when starting things like this.
Ziglu wants to bring the challenger bank mindset to crypto – Tech.eu “So you’re launching a new bank that’s going to be an app only bank. Your website is not going to do any servicing, which was pretty unique at the time, it’s through this app only. You’re not going to deal with cash, you’ve got no branches, you’re not going to deal with cheques and you’ve not got billions of pounds in reserves like all the other big banks. And you think you’ve got a chance to compete in the marketplace?”
It was scepticism overcome as the app-only bank model has been normalised, he added, and people now expect that ease and usability in all their dealings with financial services.
All that effort has paid off, after Christie’s auctioned off a digital collage of the results.
Beeple’s opus – Christie’s Minted exclusively for Christie’s, the monumental digital collage was offered as a single lot sale concurrently with First Open, and realised $69,346,250. Marking two industry firsts, Christie’s is the first major auction house to offer a purely digital work with a unique NFT (Non-fungible token) — effectively a guarantee of its authenticity — and to accept cryptocurrency, in this case Ether, in addition to standard forms of payment for the singular lot.
That’s quite a lot of money, regardless of the currency.
JPG file sells for $69 million, as ‘NFT mania’ gathers pace – The New York Times After a flurry of more than 180 bids in the final hour, a JPG file made by Mike Winkelmann, the digital artist known as Beeple, was sold on Thursday by Christie’s in an online auction for $69.3 million with fees. The price was a new high for an artwork that exists only digitally, beating auction records for physical paintings by museum-valorized greats like J.M.W. Turner, Georges Seurat and Francisco Goya. Bidding at the two-week Beeple sale, consisting of just one lot, began at $100.
With seconds remaining, the work was set to sell for less than $30 million, but a last-moment cascade of bids prompted a two-minute extension of the auction and pushed the final price over $60 million. Rebecca Riegelhaupt, a Christie’s spokeswoman, said 33 active bidders had contested the work, adding that the result was the third-highest auction price achieved for a living artist, after Jeff Koons and David Hockney.
Beeple sold an NFT for $69 million – The Verge The record-smashing NFT sale comes after months of increasingly valuable auctions. In October, Winkelmann sold his first series of NFTs, with a pair going for $66,666.66 each. In December, he sold a series of works for $3.5 million total. And last month, one of the NFTs that originally sold for $66,666.66 was resold for $6.6 million.
But has anyone actually looked at this collection of images? All of them? Whilst the futuristic sci-fi imagery shown above is interesting, if a little derivative, there are some major issues with the rest of it, to say the least. Let’s just say leaving off the titles of the original images was a very wise move.
Beeple’s USD 69M NFT enters art history – Cryptonews A non-fungible token (NFT) piece of art thirteen years in the making was just sold for a whopping USD 69.35m at famous British auction house Christie’s, becoming the most expensive NFT ever sold, and positioning the author among the top three most valuable living artists. … According to Bloomberg, prior to the sale, Christie’s Noah Davis said that “there have been a handful of really dogged, really serious clients pursuing it, and they are mostly people who are very steeped in crypto.”
Very steeped in crypto? Who are these people?
Rich millennials are splashing millions on crypto art – Bloomberg The decline [in art market sales due to the pandemic] would have been much worse were it not for wealthy collectors who spent more time at home and wanted to beautify their surroundings with art. It was a similar picture with virtual works. More hours glued to a screen encouraged crypto investors — flush with Bitcoin gains — to explore the nascent medium of art attached to a non-fungible token (NFT), a digital certificate of authenticity that runs on blockchain technology.
Who spends millions on NFTs? Meet Beeple’s crypto-rich early collectors – ARTnews.com The digital artist Beeple’s first major collector was Tim Kang, founder of Cue Music and an investor in cryptocurrency. Well before Beeple’s $6.6 million sale at Christie’s, Kang had broken all previous records by buying Beeple’s “MF Collection” for $777,777.77 on the non-fungible token platform Nifty Gateway in December of 2020. This sale launched Beeple from a niche artist working on the digital fringe to a force to reckon with, as the auction made clear three months later. […]
“Crypto and blockchain is more than just a stock; the underlying application is a paradigm shift. Anyone can have an opportunity to participate in a global market,” Kang said. “I have been waiting for so long for the breakthrough, for this to really impact the world beyond just cryptocurrency. Digital art is the perfect medium to communicate the underlying implications of blockchain on self-sovereignty.” NFTs demonstrate how blockchain technology can offer decentralized forms of authority: secure ownership without a gallery or foundation.
No shortage of hyperbole.
Beeple’s ‘5000 Days’ NFT sold for USD 69.35M at Christie’s – Design You Trust “We must recognize the record-breaking sale of Beeple’s opus as what it is: a watershed moment for our industry. This sale will allow the public to see the capabilities of NFTs in the art space, however, it is just the beginning of the NFT revolution, which will ultimately change the way we live,” Justin Banon, CEO and Co-founder of Boson Protocol, the developer of a “capture resistant dCommerce ecosystem” using NFTs encoded with game theory, said in an emailed comment.
A “revolution which will ultimately change the way we live”? Goodness me. I looked up Boson Protocol, wanting to check if dCommerce was a typo. It seems not, though I’ve no idea what a decentralized, capture-resistant, autonomous commerce ecosystem that operates within a liquid digital market that unlocks two planetary-scale value pools actually is!
Decentralized forms of authority notwithstanding, theft is still theft.
Reports of stolen art on NFT marketplace raise issues for crypto collectors – Hyperallergic The blockchain has frequently been hailed as the future of art commerce, offering a way to ensure a work’s authenticity while creating an unalterable digital record of provenance on a public ledger. But recent reports of hacking on Nifty Gateway, a popular marketplace for non-fungible token (NFT) art, have raised questions about potential security flaws in the system. Several users have taken to social media in the last few days to claim they had NFTs stolen on the platform, with little recourse to get them back.
This isn’t limited to just slightly racist and homophobic digital collages, of course.
Buy This NFT Column on the Blockchain! – The New York Times The first step in making my own NFT was setting up a digital “wallet” that would be used to hold my token, as well as any cryptocurrency I made from selling it. I used a browser extension called MetaMask and set up an empty wallet for Ethereum, the cryptocurrency network of choice for NFT collectors. Then I had to find a place to hold the auction. I chose an NFT marketplace called Foundation, which hosted the sale of the famous “Nyan Cat” graphic this year for nearly $600,000.
Crypto token of New York Times column sells for $560,000 – The New York Times @3fmusic could not be reached as of Wednesday afternoon. The user appeared to be an avid collector of NFT artwork. In addition to the Times token, their collection on Foundation also includes such works as “The result of 2020,” an image of a sad-looking Kermit the Frog, and “Mushy’s Midafternoon Nap,” an image of a cartoon toadstool sitting on a log.
I tried getting my head around cryptocurrencies before, but I’m still none the wiser. Headlines like this don’t help.
One of the collectors above said that digital art is the perfect medium to communicate the underlying implications of blockchain on self-sovereignty. Everest Pipkin, digital artist and author of the following essay, would strongly disagree with that. It’s a long piece, and I’m including more than I would normally here, but I think its clarity is worth sharing. As he explains, it’s not cryptoart specifically that’s so environmentally damaging, it’s anything that’s “minted” on a cryptocurrency blockchain, be it Bitcoin, Ethereum or any other, because of a process called “proof of work”.
Fast forward to 2009, which saw proof of work (along with another technology called the blockchain, a kind of public ledger) used for a very different purpose; making the digital currency Bitcoin. This is a simplified explanation, but to make a bitcoin, Bitcoin “miners” task their specialized computers to solve those proof of work puzzles, competing with one another to validate blocks on the blockchain. A successful solution – which is somewhat rare – rewards the miner with the new coin. The more a computer “works” (the more energy is expended) the more competitive it is. You can think of it as a lottery, with every kilowatt-hour a ticket. This process is called mining.
This started innocuously enough – mining in 2009 was a background process that could run on a laptop as it idled. However, the difficultly of mining blocks in the blockchain is designed to increase over time. This is because as the network grows, the relative rate of new coins mined stays stable (for Bitcoin, about 1 block is mined every 10 minutes).
After a decade+ of a growing cryptocurrency market, what we’ve been left with is a financial network that uses more energy than Argentina, with no regulatory structure or federal oversight whatsoever.
I get that scarcity can affect prices; the more rare something is, or the harder it is to find, the more value is has — in the real world.
However, in a digital context scarcity must be constructed – there is nothing that demands the next block in the blockchain be harder to make than the last. If anything, the opposite should be true – computers grow ever more efficient and powerful. This means any scarcity is artificial, a process that demands ever more energy, ever more resources lost to continue to operate and return, for no other reason than to insure that tomorrow it will be even more expensive – which makes the wastefulness of today a good investment.
This is why cryptocurrency is valuable. There is nothing high-tech about it. There is no miracle. It is simply futures speculation without the speculation – no guessing required, because we know it will be more wasteful tomorrow; it is baked into the tech.
The whole thing makes my head swim. Here are some other attempts at explaining why blockchains and cryptocurrencies are bad ideas.
Why Bitcoin is so bad for the planet – The Guardian In a year, bitcoin uses around the same about of electricity as the entire country of Norway. The digital currency is one that allows people to bypass banks and traditional payment methods. It is the most prominent among thousands of so-called cryptocurrencies and has been repeatedly reaching new records – but is it sustainable?
As NFT sells for $69M, artists question environmental impact of blockchain – Hyperallergic As crypto-art speculation rises, however, so do the planet’s temperature and questions about the carbon footprint of NFTs. These unique works are typically sold in “drops,” timed online sales held by NiftyGateway, OpenSea, SuperRare, and Foundation, to name just a few of the most popular marketplaces. NFTs exist on the energy costly Ethereum blockchain; in layman’s terms, they are created (“minted”) based on a process known as proof-of-work (PoW), which necessitates the use of large networks of processing machines that emit CO2.
NFTs are hot. So is their effect on the Earth’s climate – WIRED The works were placed for auction on a website called Nifty Gateway, where they sold out in 10 seconds for thousands of dollars. The sale also consumed 8.7 megawatt-hours of energy, as he later learned from a website called Cryptoart.WTF. That figure was equivalent to two years of energy use in Lemercier’s studio. Since then, the art has been resold, requiring another year’s worth of energy. The tally was still climbing. The problem, as Lemercier saw it, went well beyond himself. His fellow artists were becoming millionaires overnight as the cryptoart world exploded. But so was their role in emitting carbon. Artists didn’t seem to understand the scope of this problem—Lemercier himself hadn’t—and the platforms making the sales didn’t seem interested in clarifying.
I know other areas of our online life affect the health of our physical world…
I tried to explain to my better half what Bitcoin and the blockchain were all about. My explanation was muddled, to say the least. Here are some articles that I need to re-read, if any of it’s going to sink in.
Bitcoin and cryptocurrencies – what digital money really means for our future
[T]his speculative bubble could end with a crash so severe that it destroys faith in the entire sector, driving the investors out, bankrupting the miners who’ve spent thousands or millions on single-purpose hardware that requires a high bitcoin price to turn a profit, and leaving cryptocurrencies as a technological dead-end alongside cold fusion and jetpacks. But maybe things will continue as they have done for the past five years. Cryptocurrencies’ actual use stays stable, mostly illegal, largely underground, and completely disconnected from a market price that fluctuates wildly based on the whims of a class of financial speculators with little link to the ground truth. Instability, it turns out, is an oddly stable and predictable state of affairs.
Kodak, the blockchain and cryptocurrency: how Kodak is tapping into technology
Kodak’s platform takes the whole photography and imaging industry to a new level with the features of distributed ledger technology like encryption, decentralization, immutability, transparency, and security being utilized to create a digital ledger of ‘ownership rights’ for photographers. The digital ledger will secure the work of photographers by registering work and then allowing them to license the same for use (buy/sell) within the platform. KODAKCoin will be the currency to operate on the platform and will allow participating photographers, both professional and amateur, to receive payment for licensed work almost instantly via Smart Contracts.
economics technology photography
Bitcoin’s energy usage is huge – we can’t afford to ignore it
The economic outcome of all of this is laid bare in a Credit Suisse briefing note published on Tuesday: the network as a whole will reinvest almost all the bitcoin paid out as mining rewards back into its electricity consumption. (Credit Suisse’s ballpark figure assumes that 80% of the expenses of bitcoin miners are spent on electricity).
Blockchain’s broken promises
Boosters of blockchain technology compare its early days to the early days of the Internet. But whereas the Internet quickly gave rise to email, the World Wide Web, and millions of commercial ventures, blockchain’s only application – cryptocurrencies such as Bitcoin – does not even fulfill its stated purpose.