Cryptokitties: Another Tulip Mania?
Digital art looks like the next big thing that's caught investors frenzy! What's all the fuss about? ReadOn
Time and again, humans have fallen prey to greed. Greed for status in society, greed for power, greed for money. A greed for things that does not even make sense in hindsight.
We rubbish the past by calling our ancestors cuckoo for their actions. But, we end up falling in the same pit. And, this cycle goes on and on. From one generation to the next.
Remember how in the 1600s people were trading their fortunes for Tulips. The same story repeats every few years. While the underlying greed and desire remain the same, the subject of interest keeps changing. In present day and time, that coveted position is held by digital art and collectibles. They are currently selling for millions of dollars. What utility do they provide? Nothing. Well, not nothing. Perhaps stoking some ego’s and providing avenues to the uber-rich who don’t have enough outlets to spend on.
Well, enough of blabbering. Let us take you to the very core of what is happening and why is it happening. ReadOn.
Blockchain technology is all the rage. Countries and companies are using it to solve problems such as supply chain management, counterfeit medicines, land ownership trail and whatnot. And, oh! How can we forget bitcoins and other cryptocurrencies.
But, isn’t that so mundane and boring?
Now, blockchain had to have some other interesting (read: out-of-the-world strange) use. And human beings, well, they never disappoint.
The latest use of blockchain has been to create a game of cats! Cryptokitties.
No, we are not making this up!
Move over adopting actual kittens. Cryptokitties lets you adopt and breed digital cats of your own (blockchain ensures that your identity gets associated with the cat forever. You see, data in a blockchain cannot be messed with). But, this is not it. They took it even further.
How?
By buying and selling (trading) these kittens. Back in 2018, a cryptokitty, by the name of dragon, sold for $1,70,000. Yes, someone paid for it!
Unbelievable. But wait, this was just the beginning. This mania reached a new peak in the past few weeks.
Seeing the way the wind is blowing, a major auction house, Christies, jumped in on the trend. They announced the sales of Beeple’s digital art - 5,000 daily images created between 2007 to 2021. The bid will close on 11 March 2021 and as we write this, the bid stands at $3 million! Yes, someone is planning to pay for this! And of course, it will be an original, just like the cryptokitty.
The jargon for such unique artworks is "Non-Fungible Tokens'' or NFTs, something that cannot be replaced by another identical item.
But, does it mean no one can ever make a replica of it or use it anywhere else? No! Of course you can. Just like people make seconds of Chanel, Gucci and Louis Vuitton. Have you seen people go gaga over them? Even if the seconds are as good and just about serve the utility, elites cringe upon them.
Well, copying is not cool and originality should definitely be rewarded. And, we are not raising any objections to that. But, originals are worshipped for very wrong reasons. It is a display of power, a display of wealth. We decide the worth of an individual basis what they can afford. And, this is what makes the idea of “owning something unique” aspirational for all.
One can still argue that art (whether physical or digital) needs to be appreciated and artists need to be rewarded. You cannot just go about looking for utility in everything. Aesthetics and creativity have a place of their own. But, we need to ask ourselves - In the process of appreciating someone else, are we not engaging in the power show?
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