Art is now digital, and a debate is raging: Are non-fungible tokens (NFTs) worth the exorbitant prices they are selling for? The simple answer is yes. If someone voluntarily pays a huge amount for something, he values it more than the money he hands over. Others may disagree with his choice, but that’s what makes a free society.
How else could you explain an “invisible” sculpture that recently sold for over $18,000? Price is guided by scarcity and subjective valuation—not by the cost of raw materials and labor or objective truth.
Sculpturist Jeff Koons broke a record several years ago selling a rabbit statue made of stainless steel for $91 million. If you broke down his creation into scrap, it’d be worth a few feet of train track. Yet this was heralded as a wise investment in the art world.
With money machines around the world humming, it is not surprising that pieces of digital art have been selling at record prices....read more...