Why some art whitepapers are now recommending cryptocurrencies
When it comes to forgery or people buying goods they have no intention of paying for, the art world is the one that is the most at risk.
After all, paintings and other artwork sell for extraordinary amounts of money. Thus attracting thieves, forgers and other disreputable people.
That is why some art whitepapers are now recommending the use of cryptocurrencies in the art world.
What is a cryptocurrency? — This is a decentralized digital currency that has a blockchain verification process. This means it is far more difficult for someone that does not have the money to buy the currency to access it. Once bought, it can only be spent, and the person or company receiving it is guaranteed the funds.
Why is a cryptocurrency useful for the art world? — Several of the art whitepapers out there recommend a cryptocurrency be used when buying and selling artwork due to its ability to be tracked, protected and recorded.
The direct opposite of today’s current way of buying and selling artwork through the traditional banking system, which has been known to be hacked and infiltrated by thieves.
Who is beginning to use cryptocurrencies — While using a cryptocurrency to buy artwork is still in the early stages, dealers, private buyers and sellers and some of the world’s most prestigious art galleries, auction houses and museums are beginning to use them.
A company called ArtCoin has already begun to facilitate this by introducing investors to the art industry and using their systems to make sure the artwork the investor buys is genuine and the money the investor buys it with is authentic as well.
If you plan on buying an expensive piece of art, it may be worth your while to begin looking into this relatively new technology. It could save you years of heartache and millions of dollars in costs.