NFTs became a big thing lately, and they even managed to cause a lot of controversies. Non-fungible tokens are digital items that people can buy and sell using blockchain technology. There are special platforms where NFTs can be sold and purchased, similar to cryptocurrencies.
But since NFTs were the topic of many discussions online, people are wondering about the ethics behind these digital assets. Is it ethical to sell or buy NFTs? Before you look for lawyers for NFTs/digital asset IP, you should learn more about NFTs and whether they are ethical or not.
What Are NFTs?
NFTs or non-fungible tokens are digital assets that can be sold or purchased. “Fungible” means that something can be exchanged with an item that is equivalent, such as a $10 bill for another $10 bill.
Cryptocurrencies are an example of fungible assets, but NFTs are non-fungible – therefore, they are a unique asset type. You can use blockchain technology to buy and sell NFTs.
The Controversies Surrounding NFTs
Even though NFTs were created to protect artists, the art community and many others were not happy when NFTs eventually came around. There were a lot of controversies surrounding these assets, and for many reasons.
For instance, some people were discussing the impact of NFTs on the environment, claiming that the energy burnt by one NFT can be equal to the amount a family spends in one month. Cryptocurrencies and blockchains such as Ethereum and Bitcoin are known to consume a lot of power, especially considering they are pretty old. Meanwhile, newer blockchains are much cleaner due to the proof of stake mechanisms.
Other issues regarding NFTs that have been discussed involve scams and art theft, as well as art copyright ownership. Although NFTs could be a great way for artists to make some money from their art, things are not that simple in reality. Art often gets downloaded and sold by people without the consent of the original artist, which is very unfortunate.
On top of that, when someone wants to buy art with NFTs, they are not purchasing the actual art piece, but rather a blockchain digital token. The token belongs to the buyer, and the blockchain can prove who created it, got it, or sold it. But the buyer does not get copyright or usage rights transferred. All you can do is display the piece in a digital NFT gallery and resell it on the platform.
Conclusion – Are NFTs Ethical?
NFTs are not the most ethical investments, especially when you think about power consumption and its impact on the environment. Thankfully, the world is trying to find solutions for this, and cryptos are shifting to more environmentally friendly mechanisms. Therefore, the world of NFTs may change in the future as well.
As for the art aspect, investing in NFTs may not be unethical as long as you do not sell someone else’s content without their consent, or buy art without knowing who the creator is. Having your original pieces to sell can help a lot. In the end, arts organizations and artists can engage with NFT investing within their own level of ethical comfort.