The $8M Digital Image
CryptoPunk 7804
Summary
Rare CryptoPunk 7804 Sells for $8 million
Demand for Crypto Based Digital Art is Rising
Bullish Signal for Ethereum as CryptoPunk Popularity Grows
Background
Bitcoiner,
On March 11th, 2021, CryptoPunk 7804, a rare collectible in the form of a digital image, sold for $8 million dollars.
Yes, that pixelated image sold for $8 million dollars today.
You might be a little confused if you have not heard the phrase “NFT” yet. That phrase explains why the image is worth millions of dollars.
NFT stands for Non-Fungible Token.
I like how NPR simply describes NFT:
“Nonfungible, meaning you can't exchange it for another thing of equal value. A $10 bill can be exchanged for two $5 bills. One bar of gold can be swapped for another bar of gold of the same size. Those things are fungible. An NFT, though, is one of a kind.”
CryptoPunk 7804 is officially in possession of buyer 0xf4b4a5. This particular CryptoPunk can be copied millions of times, but the current owner paid $8M dollars to get the property rights to the image. In theory, the owner could take royalties on the image every time it is copied or used elsewhere on the internet.
CryptoPunks are built upon the Ethereum blockchain. Actually, they were the first of its kind that sparked this new Crypto Art industry. I wrote about other forms of digitally based assets in this recent article.
You can browse recently sold CryptoPunks here.
Quick Story
I first invested in Crypto late 2017. I barely had a grasp of Bitcoin at the time. I saw there were other assets like Bitcoin available such as Ethereum. After learning about Bitcoin, I decided to buy some other Crypto-related assets. One asset I came across were CryptoPunks.
CryptoPunks were created in 2017, shortly before my personal interest in Crypto began. I saw CryptoPunks selling for a few thousands of dollars. I did not understand what CryptoPunks were nor did I even hear the phrase NFT mentioned. I thought they were a scam. Only if I had a time machine to go back 4 years…
Why is this Important?
Digital art is a whole new industry appearing before our eyes. Starting in 2017, the industry is still in its infancy.
The sale of CryptoPunk 7804 for $8 million dollars is important because it shows the value of this new Crypto Art industry. The Crypto Art industry is built upon various blockchains such as Bitcoin and Ethereum, making these networks more valuable than ever. As popularity for these digitally based collectibles grow, so will the price of the tokens used to buy such collectibles.
Much like people buy old Michael Jordan basketball cards for millions of dollars nowadays, there is a new player in town when it comes to rare collectibles.
As an investor, I think there is lots of growth potential in the Crypto Art industry and will be keeping my eye on it.
Happy Thursday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz