COVID x INFLATION — Catalysts for Modern Day Digital Renaissance — NFT — Digital Art Boom
The Black Death and Historic Inflation Offer Insights into the Perfect Recipe for the NFT Art Boom
What do an outbreak of bubonic plague and record inflation in the 1970s have to do with the explosion of the NFT Art scene in 2021? If you take a step back in time to explore historical data for outliers that had extraordinary effects on the art market, you will find two moments that rocket the art world and its artists to new heights.
The Black Death: When the bubonic plague overwhelmed Europe in the mid-14th century, its impact was profound, resulting in wide-ranging social, economic, cultural, and religious changes. These changes, directly and indirectly, led to the emergence of the Renaissance, one of the greatest epochs for art, architecture, and literature in human history.
The 1970s: The U.S. experienced devastating double-digit inflation in the 1970s. Partly due to art’s ability to act as a hedge against inflation, The Art 100 Index, compiled by Art Market Research, shot up 130 percent from 1977 to 1982, a period in which prices rose 80 percent.
We have just experienced modern versions of these two events. The governments of the world released over $20 Trillion in bailout packages to help economies recover from the modern-day plague: the COVID-19 pandemic. All the money being unleashed on the economy has a substantial chance of causing inflation unlike anything most of us have ever encountered in our lifetimes.
The strong potential for record-breaking inflation paired with the pent-up energy and longing for social interaction after worldwide quarantines has provided the ingredients for a modern-day “Digital Renaissance.” The convergence of a global pandemic and severe inflation provides the perfect recipe and energy for a transformative movement in the digital art space where artists, collectors and galleries will flourish in ways not seen since the Renaissance in 1350 AD.
Written by NFT Art Gallery — https://nftartgallery1.com/
