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Anthony Pompliano, founder of Morgan Creek Digital, explained the hidden opportunities in the field of digital art and what he did in this field.
Original Title: “The Next Big Gamble: Digital Art”
Written by: Anthony Pompliano, founder and partner of Morgan Creek Digital
Recently, Anthony Pompliano, the founder and partner of Morgan Creek Digital, one of the largest digital asset management companies, published an article explaining his and Jason Williams’ sharp views on the hidden opportunities in the digital art field and their actions in this field. ArtGee organizes as follows:
Jason Williams and I will make a big bet in the field of digital art.
World-class investors know that the best way to obtain sustainable investment returns is to pursue unpopular investment strategies, while ensuring that new investment strategies are also correct. If you are doing something different, but the strategy is wrong, it will be nothing short of spectacle. But if you have the right strategy when doing something different, then you will reap considerable benefits.
In my opinion, one of the easiest ways to pursue non-consensus investment strategies is to look for markets, which are either abandoned by the crowd or so trendy that most investors do not know their existence. Our most important decision is to choose the right market direction. The second category-good industries in the early stages of the life cycle-is my favorite place to seek opportunities.
Jason Williams and I are always looking for new markets, and for most people, it’s too early to take the time to build an investment argument. In the end, we found a great opportunity-digital art.
Before talking about the digital art market, we can quickly browse the relevant data of the traditional art market:
- In the past few years, the market value of the art market is estimated to be approximately $65 billion.
- The United States, the United Kingdom and China account for approximately 85% of the entire market.
- In 2018, the sales of American traditional art reached nearly 30 billion U.S. dollars, accounting for more than 40% of the market share.
- Art dealers are responsible for approximately US$36 billion in global sales.
- Global sales of art auctions are approximately US$29 billion.
- Online art sales only account for approximately US$6 billion in global sales.
- More than 50% of art collectors in the United States are over 50 years old.
- Asia, especially Singapore (46%) and Hong Kong (39%), has a high proportion of millennials as art collectors.
Over the past 20 years, the performance of the traditional art market has been incredible. From 2000 to 2018, the art market was more than 180% higher than the S&P 500 index. For decades, the richest people in the world have been buying art, whether for storage of value, capital appreciation or pure appreciation. Regardless of your personal experience in traditional art, those statistics are absolutely amazing.
However, the transition is about to begin. The world will change, and the speed of change will be much faster than most people realize.
Just as Bitcoin is superior to gold in almost all aspects, digital art is superior to traditional art in almost all aspects. Traditional artworks are static, hanging on the wall without moving. Unless someone removes the artwork from the wall and hangs another artwork, the artwork will not change. Physical art is difficult to spread around the world, it is easy to break, and it is difficult to distinguish the authenticity.
The next evolution of art is digital art. Each piece can be integrated into art with complex dynamics. It only takes a few clicks to send digital art to anyone in the world, it will not be damaged, and the authenticity and source can be transparently verified by anyone. Literally, digital art has obvious advantages over traditional art, just as digital news has advantages over physical newspapers.
The question of the transition to the digital art world is not whether it will happen, but when it will happen. In fact, I personally think that the market value of digital art will grow to be greater than that of physical art. Today, this sounds ridiculous, especially because the market value of digital art is less than 10 million US dollars, and the market value of traditional art is more than 60 billion US dollars, but this is exactly what subversion looks like. I think it is a bit difficult to estimate the exact timing of the digital art market surpassing the traditional art market, and I don’t want to make a fool of myself in this regard. However, I am confident that the market value of digital art will grow 6,000 times in the future.
In the past few months, Jason Williams and I have been thinking about how to take advantage of the potential growth of the digital art market. We finally chose to cooperate with outstanding digital artists to stimulate people’s understanding and attention to their creations. Recently, we commissioned a digital artist that we believe to be absolutely world-class to create. The first artist launched is FEWOCIOUS.
I think FEWOCIOUS is the best digital artist in the world. A series of 6 works has been commissioned. The series adopts radical and trendy ideas and combines with Pop Art style. The first collection we shared publicly is called “The Innovator’s Dinner”.
This work highlights the famous innovators of the past few centuries. From left to right: Benjamin Franklin, Henry Ford, Amelia Earhart, Walt Disney, Steve Jobs, Elon Musk, Beyonce, Jay-Z, Dr. Dre, Malala Yousafzai. The location of each character is equivalent to that of Leonardo’s “Last Supper”. Hope, this iconic digital artwork will become a classic in the new world.
“I am very happy to collaborate with Jason and Pomp to create this series! Digital art is the future, and our goal is to create cool art to highlight the future with all possibilities. I can’t wait to share with you the art we have worked hard to create. Good!”
Jason and I are convinced of the future of digital art and plan to invest heavily in this field for some time to come. We are always looking for outstanding digital artists, and will continue to publish collaborative artists and works added to the collection. Discovering digital artwork is all fun: Nifty Gateway, SuperRare, OpenSea.
We look forward to your joining.
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