Balance in All Things: Make Sure Your Portfolio is Diversified By Investing in NFT Art
A diversified investment portfolio should include a little bit of everything. Traditionally, people think about their broker account, their property portfolio and, in modern times, their crypto wallet. Even seasoned investors are somewhat taken aback when people mention their art and wine investments. Art and wine? What do those clumsy Dionysian accoutrements have to do with safe money and sensible investment strategies?
Well, actually, a lot. Wine is making waves as an investment asset with recent interest from the Far East, particularly China, in fine wines from Europe. Meanwhile fine art has always been a successful hedge against inflation. Sometimes the less tangible holds its value far better than the tangible ever could. While stocks, shares, and crypto all suffer from the macro-economic squalls that are raging day to day, art, wine, and other intangibles continue to rise in value.
Why NFT Art is a New Investment Class
NFT art is going to evolve into a solid new investment class over the coming decades, just as its forebear crypto is slowly becoming accepted as a new asset class by mainstream markets (such as with the release of Bitcoin ETFs). The process has already begun. It started with the flash-in-the-pan gold rush that occurred when NFTs first burst onto the scene, with NFT art fetching extravagant sums in the heady fever that accompanies the birth of any new investment asset. This has been followed by the ‘monkey collection’ trend, with thousands of competitors racing to emulate the Bored Apes or the Cryptopunks and establish themselves.
Now, though, as the market cools and level heads emerge, it is NFTs which either have genuine artistic merit, or actual long term utility, that are seeing popularity. NFTs as a vessel for new artistic voices is still in its infancy, but as the technology develops and the metaverse becomes enshrined in our daily lives, truly groundbreaking and novel art will find a place within it. Virtual museums will become as famous as museums in the real world.
Why Physical Art Remains Important
However, physical art isn’t going away, ever. From the masters of the renaissance to the commodity art of Warhol to the restrained glamour of modernist expression – the art of the past and of the the present still affects us, resonates with our life, and – importantly in this context – gains value. NFTs will change the art world, but an effective bridge between the physical and digital hasn’t yet been constructed.
Private Museum aims to straddle that divide, and help usher the fine art world into the emergent possibilities of the blockchain. Private Museum is working with fine artists all over the world to bring their art onto the blockchain. By doing so it wants to support those artists in maximising the potential of their work, helping them achieve additional income from their endeavour, and expose their work to a wider audience by hosting it on their platform.
How Private Museum Curates World Class NFTs
Private Museum works with artists to mint NFTs of their real physical art before putting it on display in their 3D/VR enabled public museum and letting users – collectors – purchase it for their own collections. Users who then own Private Museum’s LAND NFT will then be able to host it in their own private galleries hosted on the platform, and invite other collectors to witness and enjoy their collection. In their own galleries, users will also be able to host auctions, private sales, and exhibitions. It will be a connected ecosystem of art-lovers and a vibrant community of active collectors who recognise that NFT art is an investment, like physical art and wine, that will only grow.
Although an investment portfolio that consists only of NFTs or only of crypto would be considered perilous by most mainstream financial advisors, those in the know are already making sure that their investment portfolio contains a range of blockchain-enabled assets. Most big investors hold both crypto and NFTs alongside their stocks and shares, and most medium-size investors should certainly think about following suit.
How Private Museum Gives Investors Confidence
Private Museum will give those knowledgeable investors a reliable route to investing in the best of NFT art. Private Museum does not host every NFT available, or any NFT they can. Rather, Private Museum curates a world-class collection from the hottest new artists. It works closely with those artists to create a contract, authenticate the artwork, mint the NFT, and certify it. This means the NFTs the collectors buy have the most exceptional provenance. Remember too, that all Private Museum’s NFTs are connected to actual physical pieces that exist.
In service to this, Private Museum plans to open NFT galleries in big cities all around the globe. These galleries will host some of the physical art that are NFTs on the platform, and will act as a bridge between the metaverse and traditional world of art galleries. It will help add legitimacy to NFT art, and spread knowledge about its existence both as a piece of art and as an investment possibility for a diversified and tactical portfolio.
Why Modern Investment Portfolios Benefit from NFT Art
Modern investment strategies need to adapt. Blockchain – through both crypto and NFTs – has created digital ownership that has huge ramifications on the way we contemplate both what we own, how we own it, and how we experience it. NFT art is certain to be a long term investment asset just as fine art has always been. It just needs the appropriate bridge so that the general public can access it, and NFT art collectors can take full advantage of it.
Private Museum is that bridge. Hosted on the Polygon and BNB networks, but eventually extending to encompass all chains, it will merge the physical and digital world of art, creating a foundation for our new understanding of what art can be. As we build a new world in the metaverse for our shared reality, then art – as it has been for thousands of millenia – will have a crucial place within it.
Private Museum plans to be the hub for that new museum metaverse, and its community is growing everyday. You can join that community on the Private Museum Discord and follow the latest updates on their Telegram – or head over to their website to see the fantastic range of artists they work with. Art is changing. Investment is changing. Be ready to change with it.