Le bitcoin article in nyc
Art historians le bitcoin article in nyc an odd yet telling blip in the creation of paintings of flowers: The crash in the Dutch market for tulip bulbs ruined many businesspeople and even families.
Will the same be true for Bitcoin? Perhaps, one day, market players will feel the same sort of queasiness as their Dutch forebears if the value of digital currencies like Bitcoin evaporates overnight. Some are being set up to pay for pieces of art, some for shares in art, and others as simply a store of currency. There came a time during the Dutch Tulip Craze of the early s that tulip bulbs could buy houses.
Buyer and Seller would literally exchange a handful of bulbs for properties. A single bulb of the precious Semper Augustus tulip fetched 5, guilders indoubling in value by le bitcoin article in nyc beginning of the following year. Botanists — amateur and professional — crossbred strains of the plant to create colorful hybrids.
In botany, hybrids are called cultivars. The process and the time it took to develop the cultivars created an artificial level of scarcity in a world filled with basketfuls of other beguiling flowers. Digital currencies like Bitcoin are very much like the sought-after tulip cultivars. However, digital currencies only exist on computer networks.
They are not something you can hold in your hand, like Euros, British Pounds or American dollars. You can, however, trade your hard-earned national currency for most digital currencies. Communities come together through a computer network called a blockchain. Members of the communities transact business through the digital currencies, which are also called cryptocurrencies. When a computer cracks the code related to a transaction, it also mints a le bitcoin article in nyc coin.
Minting these cryptocurrencies — like cultivating prized tulip varieties — takes time and resources and le bitcoin article in nyc. The community that has joined together in the blockchain markets know, appreciate and place value on the cryptocurrencies as they come onto the market. The Dutch used the scarcity of striped tulips to assign value to the flowers.
In the same way, the founders of cryptocurrency communities either le bitcoin article in nyc a limit on the number of coins the network can produce or place a limit on the rate of growth of money supply in the network. For instance, members of a blockchain community can agree to a rate of money expansion of two-percent per year. One of the first and clearly the most popular of the cryptocurrencies is Bitcoin. The founder of Bitcoin limited the number of Bitcoins the blockchain network could generate to 21 million.
The limitation in the supply of the digital currency drives up demand for the tokens, which subsequently gain in value. People and institutions convert conventional currencies like dollars and euros into cryptocurrencies through exchanges like Bitpay, which functions like — though is not le bitcoin article in nyc with — Paypal. She feels this works for her international clientelewho seemingly prefer fewer financial intermediaries than would be found in conventional transactions.
Manhattan-based Sarah Meyohas created her own digital currency community. One Bitchcoin buys square inches of any of her digital photographic prints. The key to financial success in this model is how the community ultimately values the prints. If members do not feel the art is worth the price, they will not buy.
If they do not buy, the Bitchcoin devalues and early investors will lose money. The greatest challenge Bitcoin and other digital currencies have is legitimacy. However, the very mechanisms that confer legitimacy le bitcoin article in nyc a market also offset the advantages of the cryptocurrencies.
The lack of regulation and intermediaries like banks makes participation in blockchain communities risky. While an art community may one day consider a piece of sculpture in its blockchain a Modigliani, the next day the cryptocurrency through which buyers invested in the piece may plummet in value due to gyrations in the Blockchain market.
Like le bitcoin article in nyc 17th-century Dutch, then, cyber investors may find themselves holding an exotic digital cultivar and not much else. Blockchain Technology and Insurance in the Art Le bitcoin article in nyc. Artificial Intelligence for Art Valuation. Facebook Twitter Pinterest Tumblr Email. About us Le Journal Contact. September 26, - Category: The Next Tulip Craze? Art and Blockchain So what is a digital currency?
Does Bitcoin Have Real Value? A Matter of Trust The greatest challenge Bitcoin and other digital currencies have is legitimacy. Comments Leave a comment Cancel reply Your email address will not be published. Join our newsletter Email Address. About us Contact Terms and Conditions.