Bitcoin happens to be one of the world's most popular cryptocurrency today after seeing a massive increase earlier this summer, ranging around $4,500 for one coin. While some consider the technology to be uncertain and hard to understand, others are fully embracing its unforeseen potential. The majority of Bitcoin, and other cryptocurrencies like it, have been used for a wide variety of purchases, its entirely intangible existence poses a major shift away from what we know now as cash. Its presence in the Forex market is met with excitement and wariness as participants attempt to understand its capabilities and if all this hype will outlast and flourish as a new universal currency.
Another largely speculative investment happens to be art. Sure, certain triggers lead collectors to better understand the market and make rational purchases. However, having those purchases sustain their value, much less grow, still holds an element of uncertainty. Just like any investment decision, the passion and belief in its success is critical. With both investment avenues becoming more popular, the merging of the two was bound to happen.
Some galleries are fully embracing the technology of Bitcoin, and other cryptocurrencies, accepting it as payment for art. In a rather hopeful move, these institutions say that soon these currently successful coins will soon be in everyday use. In some places, that is already the case, the coins are being accepted in even coffee shops and grocery stores. So why not art galleries or even auction houses for that matter? An investment is paying for another investment, thus transferring that risk regardless. The value in either, the art and the cryptocurrency, exists because of the limited quantity of both. Many investors are holding onto to their Bitcoin, waiting for it to stabilize and have a more definitive value, much like with major art purchases. Art collectors hold onto works, usually interested in selling them at a later date for much more. This standard practice will most likely continue when considering art, however as more Bitcoin is dispersed and more readily used it will become just another form of electronic money. Money that can be used to purchase anything, including art.