Why Collect Digital Art? What Do You Believe? (Gen Art)
Ian Rogers November 19, 2024
On the 14th of November, I received a text message from the Digital Art Curator Grida Hyewon Jang asking if I would mind giving an answer to three questions she had posted on X. She told me she planned to use the responses in a lecture she would be delivering to art students in Korea who are not particularly familiar with digital art. “Who knows – your comments might inspire a future artist!” she wrote.
That same day I was traveling from Paris, France to Marfa, Texas, for ArtBlocks annual community gathering (for more on ArtBlocks please read my earlier Tetragrammaton piece, Chimera: The Not-so-Still Life of Mpkoz). I had many thoughts bouncing around in my head that morning regarding digital art, a medium much maligned in the aftermath of FTX yet somehow still living and gaining momentum again. Grida’s request was a welcome opportunity to put those thoughts here on digital paper. I’m very happy for the opportunity to save these thoughts for posterity and present them to you, dear Tetragrammaton reader.I welcome your feedback and discussion.
“Basquiat's work increases in value because the number of people who know the story increases while the supply does not. Luxury brands are trading on heritage and storytelling, not only products. Similarly, if you are wondering if the value of Cryptopunks will increase over the next 25 years you only need to ask: Will people still talk about them in 25 years?”
Collectors: Why collect? What do you believe?
Modern, digital technology is a tool, created and wielded by humans, ostensibly under our control. Throughout history, the adoption of new technologies has driven profound shifts in society and this has been especially true when the technologies connect humans in new ways (shipping, telephony, trains, airplanes, internet, mobile connectivity) that lead younger generations to live differently than those who matured ahead of them.
Today, most of us are living in two worlds at once: physical and digital. We breathe in the physical world where we hug our children, eat, sleep, make love, run, ride skateboards, and play vinyl records. Often simultaneously, we email, DM, scroll, heart, create, share, shitpost and type with thumbs in a world of small-yet-powerful computers connected to one another via TCP/IP. We value the opinion of our network neighbors far more than our physical ones. We operate in dual worlds most of our waking moments, and share data with the cloud while we sleep.
In my lifetime, as the five-year-old recipient of my brother's KISS vinyl, a teenage collector of VHS tapes about skateboarding and music, and MP3-trader-turned GM of Apple Music, I've lived through the digitization of all information. Obscure performances once mail-ordered from the classified ads in a newsprint magazine are now available to 5.52 billion Internet users with a simple keyword search on YouTube.
Now, we have begun the digitization of all value. The "renting services on the Internet" business (internet-services business) has a current marketcap of about $4.75 trillion. The "owning digital value" business (cryptocurrency) is currently valued at $3.2 trillion. I believe the "owning digital value" marketcap will be at least an order of magnitude larger than this "renting digital services" industry within the next 25 years, and if Instagram hadn’t chickened out of their digital collectible market the lines would already be beginning to blur. The value of Internet services is centralized with the shareholders of companies whose product is the user. The marketcap of cryptocurrency will at least partially belong to the world's digital citizens held in permissionless digital self-custody.
The digitization of value, however, has a cold start problem. Asset value is relative to network effect -- it only exists if we all agree it does. Adoption curves to new technologies always takes time but the emerging Internet of Value has a different foe than the 1990s Internet of Information. In 1999, digital media was challenging an $895 billion traditional media market;today, the crypto industry is challenging a $9 trillion banking industry. Replacing 3% credit card surcharges is inevitable but will take a long time and digital ownership is much more than just finance. It's trustless proof of humanity, identity, and anything else.
www.beastieboys.com in December of 1998.
Music apps hold "early adoptor" status in online history. Many of the first CD-ROMs, Shareware, Web and mobile applications were applications to find and listen to music. "Self-publishing" music platform IUMA pre-dates the World Wide Web. CD Baby bridged digital and physical self-publishing ten years before Amazon started allowing authors to publish their own books. The iPhone wouldn't have come into existence without the success of the iPod. There are many reasons music was the tip of the proverbial spear, among them relatively small file sizes, artist/album/track/genre being a remedial database challenge, and every college-age computer programmer loving and listening to music while they code.
Similarly, Digital Art is the tip of the digital value spear. Someone creates something. Someone else likes it. They exchange value. It's the simplest form of a digital economy. Scale helps, but isn’t required. As with traditional art and luxury goods, the number of market participants can be small relative to value. It only took two bidders to drive the value of Francis Bacon's Three Studies of Lucien Freud to $142.2 million dollars.
In the 1990s I was the conduit between the band Beastie Boys and their online fans. I posted tour dates, press articles, and photos from the stage. I kept the FAQ up to date and moderated the message board and IRC channel. We shared information about the band's not-for-profit and indie record label. As a "market" the fanbase was relatively small, but extremely passionate and dedicated. It felt as if the internet was made especially for communities like this to gather. I used to say my job was "to turn a casual listener into an obsessed fan".
Similarly today, the "obsessed fans of Kim Asendorf market" (who gather in a private Discord of which I am part) is very small. Yet if you enter you will find it is indeed a market with rising prices due to demand growing faster than supply.
When talking about value people often get stuck trying to puzzle out intrinsic value instead of simply admitting the obvious fact: Storytelling + Time = Value. Basquiat's work increases in value because the number of people who know the story increases while the supply does not. Luxury brands are trading on heritage and storytelling, not only products. Similarly, if you are wondering if the value of Cryptopunks will increase over the next 25 years you only need to ask: Will people still talk about them in 25 years? If yes then you have Storytelling + Time, which amounts to more value. If everyone forgets about Cryptopunks and stops talking about them, the value will decline. Intrinsic value be damned.
I'm not arguing that everything digital has value any more than I'm arguing that every song on Spotify is worth hearing. But I believe digital art holds and will continue to hold "early adopter" status as online economies grow because the barriers to creating very small test markets are very low.
Crypto Punks from higallery’s collection, paired with Egon Schiele sketches, c.1912.
A value exchange between a creator and a collector is a beautiful thing, especially relative to the business models of stealing and selling attention or speculating and gambling.
What’s the biggest difference from the traditional art scene?
I'm the least qualified to answer this question. In the traditional art world I rate as "museum-goer and collector of work from skateboarders I know".
Which is exactly why I've enjoyed the digital art world so much.
I love peering into the mind of a creator through their output.
I love being a patron.
I love the opportunity to get to know or even assist an artist in some way.
I studied and practice computer science; I'm more qualified to appreciate a generative art piece than a painting.
The digital art world is small and self-selecting, full of creative, intelligent, and often downright weird people. Those still participating in 2024 believe in something most do not with enough conviction to weather being negatively judged by their peers. I remember being called a "gayboarder", laughed at for wearing bermuda shorts and growing long bangs. But I can’t imagine my life without skateboarding and the people I met through it. I'm very comfortable in a crowd of idealistic, thoughtful, creativity-loving outcasts.
In 2022 my wife Hedvig and I were sitting around our dining table with FVCKRENDER and his wife, OSF, Farokh, and Raoul Pal. Raoul said, when talking about this moment in digital art and the digitization of value, "We will always remember that this was the time when everyone knew each other." I love that time. I'm proud to have been a skateboarder long before it was allowed in the Olympics and a punk rock fan long before The Offspring. I learned much more building pieces of the Internet than I do today as one its 5.52 billion consumers. I guess my preferred moment in any market is the one decades before "traditional".
Thanks for asking me to reply. I’m sure this isn’t the response you were expecting. I guess it’s dangerous to ask an idealist “what do you believe?” I hope it’s useful anyway!
Ian Rogers
