Non-fungible tokens (NFTs) have exploded as a new way to buy and sell digital art. But the hype obscures real issues. As an informed collector, consider these drawbacks before jumping into NFT art and consider the dark side of NFT art: what you need to know now before you buy.
The Environmental Impact
Mining NFTs consumes large amounts of energy. While greener alternatives emerge, most platforms still rely on power-hungry blockchains. This contradicts the “revolutionary” branding. New tech should be environmentally sustainable, not resource-intensive.
Speculative Markets
The NFT art space is rife with hype, FOMO, and bubble-like speculation. Valuations can detach from real artistic merit. Like any speculative mania, risk of crashes looms large. It’s best to approach NFTs as a risky asset, not a sure bet.
Rampant Fraud and Theft
Due to the pseudonymous nature of crypto, fraud is common in NFTs. Copyright theft, fake listings, rug pulls, and pump-and-dump schemes abound. While bad actors plague any system, the minimal oversight amplifies risks here.
Related: “Top 7 Reasons Why NFT Art Increases in Value“
Technological Limitations
The tech is still buggy. NFTs don’t contain the art, just a link. Royalties depend on the platform, not the NFT. And prices are highly volatile given the nascent market. The vision doesn’t yet match the reality.
Pseudonymous Echo Chambers
Vibrant communities form around NFT brands. But blind positivity and cult-like behavior also emerge. Critical voices get shouted down. Echo chambers form easily without real-world identity. This skews perceptions.
Remember the Art
For photographers and artists, the medium impacts the message. If the medium is an exploitative, speculative market, what message does that send about your work? The art itself can get lost amidst the crypto hype cycle.
The NFT space absolutely offers benefits like direct patronage of artists. But downsides exist that need sober assessment. As with any new tech, it’s best to enter carefully. Do your research, find ethical platforms, and support artists not just speculators. The idealism driving NFT art shouldn’t be discarded – but realism remains important too. We hope this article has helped you understand the dark side of NFT art: what you need to know now before you buy.
