January 21, 2022

The revolution in investments in works of art with the arrival of NFTs

Since I was a child, I have always been very interested in the universe of art in all its modalities, such as painting, sculpture, dance, music, theater, literature and cinema. As an adult, then, I had the opportunity to return to live in the country where I was born, Italy, and there I was able to be even more enchanted with divine architecture of all kinds […]

The post The revolution in investments in works of art with the arrival of NFTs first appeared in Portal do Bitcoin .

Since I was a child, I have always been very interested in the universe of art in all its modalities, such as painting, sculpture, dance, music, theater, literature and cinema. As an adult, then, I had the opportunity to return to live in the country where I was born, Italy, and there I was able to be even more enchanted by divine architecture from all eras and the wealth of museums throughout the European continent, in general. .

What I couldn't imagine, however, is that, many years after my childhood, a new way of creating art would be created, the NFTs ( Non Fungible Tokens ).

For those who don't know, in a simplified explanation, the NFT (a term that was chosen as a 2022 word by the Collins dictionary) is a code that works as an authentication of a certain file (in this case, a work of art) and allows them to be guaranteed its authenticity and originality.

When thinking about the universe of wealth management, investing in works of art has always proved to be an interesting possibility, since they are assets that can appreciate a lot over the years, especially if you are a person who knows the subject or if you are well advised in this regard.

There are cases of people who buy paintings by promising young artists, for example, and, after these painters gain more space and projection, they resell these pieces for great prices.

As with any type of investment, it is very important that care be taken when buying a work of art, such as storing it safely (even with an alarm in the frame, depending on the case), taking out good insurance against theft or depredation of the property, in addition to to always keep it declared to the Internal Revenue Service .

And everything I described above is absolutely applicable for anyone who wants to invest in art via NFT. In recent weeks, the sale of the hybrid work (physical and digital) HUMAN ONE by artist Beeple for US$29 million has attracted attention.

This same creator was responsible for the most expensive NFT sold to date, the play EVERYDAYS: THE FIRST 5000 DAYS, which traded for $69.3 million .

NFT security precautions and declaration to the Revenue

However, investing in NFTs also requires taking care of security. You need to choose your wallet and, especially if it is connected to the internet, adopt strict procedures, with two-factor authentication and the creation of strong passwords that are not made available to other people nor are they stored on the network.

In addition, it is essential that you declare your purchases and sales of NFTs to the IRS. Unfortunately, today there is still no specific field for this in the Income Tax return and, although this type of property is much closer to the “work of art” field, it must enter the “cryptocurrency” section and its sale is subject to the same taxation as buying and selling bitcoins, for example.

Thinking on the artist side, I also think blockchain technology can offer sensational gains! As the blockchain is public, the artist will be able to receive his share every time the work is resold or reproduced, thus guaranteeing the receipt of his copyright.

So I believe that just as the financial market is undergoing an unprecedented revolution with the arrival of cryptocurrencies , art is also in a scene of a lot of giant change with the development of NFTs and I see this extremely positively.

About the author

Annalisa Blando is a certified financial planner by Planejar (CFP) and founder and CEO of ParMais , the first Wealth Management Tech in Brazil. She is also the leader of the Mulheres do Brasil group in Florianópolis.

The post The revolution in investments in works of art with the arrival of NFTs first appeared in Portal do Bitcoin .

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