We bought our first NFT at PosterBurner.
It cost a little over 2 thousand dollars.
Here's the artwork we purchased:
Looks like we went crazy, right?
But maybe not.
Let me explain why we purchased this NFT.
What the Heck is an NFT?
NFT's are pretty new so if you’ve never heard of them, that’s ok.
I’ll try to give a simple explanation.
An NFT is a digital proof that you own some rights to an asset.
The asset might be a picture, artwork, or a concert ticket.
The person who creates the NFT has the option to add in a smart contract. So the NFT can function like a ticket to an event as well as a digital asset.
The smart contract also allows the NFT creator to get a percentage of the sale price if the NFT is resold.
Let’s compare two scenarios that show the value of the NFT to an artist.
In the first scenario, Vincent Van Gogh paints The Starry Night.
He then sells it for $12,000 dollars to some rich guy. That rich guy holds it for 20 years and then sells it for 2 million dollars once Van Gogh makes a name for himself. Van Gogh gets nothing from that 2 million dollar sale.
If Van Gogh sold the ownership rights to the painting as an NFT, he can add in a smart contract that says whenever the NFT is sold, he gets a 10% cut of the sale. So 20 years after he sold his painting, he would make 200,000 dollars when the rich guy sold it for 2 million dollars.
You can see why artists and creators would be very interested in working with NFT’s rather than just selling a painting
For a creator, the NFT is a way to create a product that can package both a digital good and a service, and make money if the NFT rises in value.
For an NFT buyer, the NFT becomes a collectable or investment, and you will be able to show off your NFT collection with public wallets.
But Why Did You Buy That Drawing of a Dog for $2000?
The drawing of the dog is part of Gary Vaynerchuk’s NFT project called VeeFriends.
If you don't know about Gary Vaynerchuk (aka Gary Vee), he's a guy that comes from a humble immigrant background, helped build his family business, and then started a big advertising agency. And he puts out podcast and videos helping people start or improve their businesses.
He does a lot of work to help small businesses like PosterBurner and asks for nothing in return.
He curses and has an outsize personality, but overall he seems to be a good guy who puts a positive message out into the world.
He also has a great track record with recognizing how people will adopt technology.
So a big part of buying the NFT was to support someone who has helped us over the years.
The other part is that the NFT functions as a ticket to 3 super conferences he’s putting on called VeeCon.
The ticket aspect of the NFT will likely put a pretty high floor on the value of the NFT as the conference dates approach.
What Now?
And from here we'll hold onto it to see what happens with NFTs. If it works out, we'll own an early and hopefully valuable NFT that we can show off on PosterBurner’s public NFT wallet. And have access to a cool event.
If it doesn't work out, we supported a project by a guy who is out there helping others for free and being a force of positivity in the world.
At PosterBurner, we turn your pictures into posters, canvas prints, decals, and more. If you need anything or have any questions about printing, just let us know.