KATE THOMPSON DAVY: Blockchain helps collectors perfect the art of possession
Unique cryptocurrency tokens — some worth literally millions — aren’t about 'getting the art' as much as proving ownership
If you do not work in (or adjacent to) art and auctioning, you could be forgiven for never having heard of nonfungible tokens (NFTs) … at least until the past few weeks. However, a recent boom in their sale means NFTs have shattered auction records and amassed some major headlines. But what the Fabergé are they?
First, some definitions: economists should be au fait with the notion of fungibility. Money is fundamentally fungible in that it can be swapped out and chopped up in a bunch of ways while retaining value. Two R10 notes are interchangeable. Two R5 coins are interchangeable for a R10 note. And an ounce of gold in nugget or necklace is still, largely, an ounce of gold...