What is the value relationship between Crypto Art and Bitcoin?

涛 沈
涛 沈
Financial technology expert.

Hey, that's a really interesting question! Many people do indeed confuse these two things or think they're one and the same. Let me break it down for you in simple terms.

You can think of it this way:

Bitcoin is like "gold" or "cash" in the digital world.

A piece of gold in my hand and a piece of gold of the same weight in your hand are worth exactly the same and can be freely exchanged. One hundred dollars in my wallet and one hundred dollars in your wallet are also completely equal in value. Bitcoin is like this; it's a "fungible" asset. 0.1 Bitcoin in your hand and 0.1 Bitcoin in my hand are indistinguishable and have exactly the same value. Its value is primarily as a store of value; many hold it as digital gold or use it as "money" to buy and sell things in the crypto world.

Crypto art, whose medium is NFTs, is like a "property deed" or a "limited edition print signed by the artist" in the digital world.

Think about it: every house in the world is unique, so every property deed corresponds to a unique asset. Your neighbor's property deed certainly can't be swapped with yours, right? Crypto art works on the same principle.

Crypto art is essentially a digital painting, a piece of music, a video, etc., to which an artist applies an unalterable, unique "digital seal" using a technology called NFT (Non-Fungible Token). This "seal" is recorded on the blockchain, a public ledger that everyone can see and no one can tamper with.

This "seal" (NFT) acts as the "property deed" or "certificate of authenticity" for that digital artwork. While the image file of the artwork can be infinitely copied, screenshotted, and saved—just like you can find countless photos of the Mona Lisa online—only the person who owns that NFT is publicly recognized as the true owner of the "original" digital artwork. Its value lies in this unique proof of ownership, as well as its underlying artistic merit and community consensus.

So, what's the relationship between their values?

  1. "A rising tide lifts all boats" relationship: Bitcoin is the "big brother" and "ballast stone" of the entire crypto world. You can see it as the "US dollar" or "gold reserve" of the crypto space. When Bitcoin's price surges, the entire market feels "bullish," people have more money, confidence grows, and they become more willing to spend on trendy things like NFTs. Conversely, if Bitcoin crashes, market panic sets in, and people's first thought is to convert their assets (including selling NFTs) back into Bitcoin or stablecoins, which naturally impacts the NFT market. So, Bitcoin's performance is the overall climate for the crypto art market.

  2. "Gateway currency" relationship: Although the most common cryptocurrency used to buy NFTs now is Ethereum, ultimately, to play in this world, you first need "money." Bitcoin is the hardest "hard currency" in this world. Many people first make money by investing in Bitcoin and then allocate a portion of their profits to invest in crypto art. From this perspective, Bitcoin serves as the "startup capital" or "bridge" for many to enter the crypto art space.

  3. Fundamentally different value propositions: This is the most crucial point. Bitcoin's value lies in its "sameness," in its consensus as a currency. Crypto art (NFTs), however, derives its value precisely from its "difference," from the uniqueness, artistry, and scarcity of each piece. One is like money, the other is like an object. One's value is financial, while the other's is cultural and collectible (though it also has strong financial speculative attributes).

To summarize simply:

You can think of Bitcoin as the "hard currency" in the crypto world, while crypto art (NFTs) are the certified "antiques," "artworks," or "real estate" within that world.

To buy and sell these "artworks," you typically need the "money" of this world (like Bitcoin or Ethereum). The stability and appreciation potential of the "hard currency" directly influence people's willingness and ability to invest in these "artworks." They are not the same thing, but they exist within the same large ecosystem, influencing each other, and their relationship is quite close.

Hope this explanation makes sense!