Don’t Dismiss Digital Art
by MAX RASKIN, ADJUNCT PROFESSOR OF LAW, NEW YORK UNIVERSITY
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. More money is chasing fewer goods, which causes prices to rise. A virtual collage from the artist known as Beeple recently sold at Christie’s for $69 million.