Cryptocurrencies in the Art Markets

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The ArtMarket.guru Founder and Publisher, Frederic de Senarclens, and I came up with the idea to develop a framework for any stakeholder in blockchain or cryptocurrencies to be able to gauge the appropriateness of their potential investment in time and money in the technology. I'm proud the cryptocurrency and blockchain frameworks I developed are unique in the investment world. - Wim 

Digital currencies abound in the art market: Bitcoin, Ether, CodexCoin, Bitchcoin, ART, and many more. The plethora of digital currencies that blockchain projects are pitching to investors and consumers seems overwhelming. Technology ventures intend the digital currencies – also known as cryptocurrencies – to act as a tender for blockchain applications. Many tech startups promise stakeholders payouts if they convert their dollars or euros or pounds – any fiat currency backed by a national government, really — into the local blockchain currency.

The cryptocurrencies in some blockchain projects also serve as ways to regulate the micro-economies, promising rewards for good behavior, and punishments (i.e., loss of funds) for activities that violate blockchain community rules. Other uses of cryptocurrencies involve taking fractional shares in pieces of art.

The question arises, however, that if investors and stakeholders must convert a fiat currency into a digital currency to participate in a blockchain community – and then convert the digital currency back into the fiat currency to cash out — why introduce a cryptocurrency at all into the project? When does it make sense for a blockchain implementation to tie stakeholders into a local cryptocurrency?

Read the article here.