Bitcoin work of art blogpost

“Work of Art” can refer to anything but most people think of paintings. For instance, Artwork by Pablo Picasso, Les Femmes d’ Alger (“Version O”) that is valued at $197.4 Million. Furthermore, another of his works Le Rêve sold for $155 Million. The former painting depicts some women in Algiers and the latter shows a picture of Picasso’s mistress (at the time) reclining on a chair.

A list of the 20 most expensive paintings places Leonardo da Vinci in first place for the Salvator Mundi painting at a staggering $450.3 Million. It depicts Jesus Christ holding a crystal orb. We can find art in paintings, sculptures, buildings as well as many other objects. Art is also something that reflects creativity.

More than a Painting

For many of us, it is difficult to understand the utility of owning these rare paintings. Da Vinci died over 500 years ago and left a largely incomplete series of works. There is no doubt as to his genius and how he merged imagination with observation to produce some of humankind’s most prescient and beautiful works ranging from medicine, religious pieces, flying machines, war among many others. Furthermore, Picasso also created a revolutionary range of artworks influenced over different stages from his blue period and cubism to his neoclassicism and surrealism.

A Finite Supply Creates Value

The overwhelming evidence of these rare pieces is that there is a finite supply. These art pieces keep going up in price as more people desire and try to bid for them. This is a very basic economic story. Also, if there is a large demand for limited (or finite supply) then the price will go up – even skyrocket.

Another scarce and valued commodity other than the art is gold. Traditionally we consider gold a rare commodity. What we are starting to understand is that gold also exists in meteorites and new deposits are discovered around the world from time to time.

When the demand for gold increases and profitability is good. As a consequence, gold miners renew efforts to extract more gold. As well, this will result in a newly minted supply. Conversely, the cost of mining will increase the more scarce it becomes. With Bitcoin, this is not a problem.

Why is Bitcoin a Work of Art?

Bitcoin, by way of contrast,  has a finite supply. The bitcoin supply is fixed. Furthermore, it only enters into existence every time a miner gets to add a block to the bitcoin blockchain. It is a technological marvel as much as it is a thing of beauty. Also, it solves a problem but also has an air of mystery.

There is only 21 million bitcoin available. Consequently, a number of people and institutions attribute value to these truly rare units. Also, this number is growing quickly.

Bitcoin is legitimately a work of art. Furthermore, it is poetry. The whitepaper, the code, it is all a work of art. Everything about bitcoin is a visualization of ideas, concepts, and even political ideologies. As a consequence, it creates a whole community that believes in it and promotes it.  

Expensive Art

Here’s a quick recap of the 20 most expensive paintings in the world:

  1. Salvator Mundi – Leonardo da Vinci – $450.3 Million
  2. Interchange – Willem de Kooning – $300 Million
  3. The Card Players – Paul Cézanne – $250 Million
  4. Nafea Faa Ipoipo – Paul Gauguin – $210 Million
  5. Number 17A – Jackson Pollock – $200 Million
  6. No. 6 (Violet, Green, and Red) – Mark Rothko – $186 Million
  7. Pendant portraits of Maerten Soolmans and Oopjen Coppit – Rembrandt – $180 Million
  8. Les Femmes d’ Alger (“Version O”) – Pablo Picasso – $197.4 Million
  9. Nu couché – Amedeo Modigliani – $170.4 Million
  10. Masterpiece – Roy Lichtenstein – $165 Million
  11. Nu couché (Sur le côté gauche) – Amedeo Modigliani – $157.2 Million
  12. Le Rêve – Pablo Picasso – $155 Million
  13. Portrait of Adele Bloch-Bauer II – Gustav Klimt – $150 Million
  14. Three Studies of Lucian Freud – Francis Bacon – $142.4 Million
  15. No. 5, 1948 – Jackson Pollock – $140 Million
  16. Woman III – Willem de Kooning – $137.5 Million
  17. Portrait of Adele Bloch-Bauer I – Gustav Klimt – $135 Million
  18. The Scream – Edvard Munch – $119.9 Million
  19. Reclining Nude With Blue Cushion – Amedeo Modigliani – $118 Million
  20. Untitled – Jean-Michel Basquiat – $110.5 Million

Bitcoin: Value is still in progress

Here is the abstract from the bitcoin whitepaper from 2008: A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and re-join the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.

Do you think we can classify Bitcoin as a work of art? Leave a comment below and share your opinion!

5/5 (1 Review)

Read more ...

Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.