Name : Meiliana Rizka Maulida

NIM : 048774139
Subject : Bahasa Inggris Niaga
Date : 5th May 2024

Question:

1. Please choose one of the topics below. Then, write an essay consisting of 3 paragraph. Elaborate your

own opinion with the references related to the topic that you choose.

2. Given the rise in popularity of NFTs (Non-Fungible Tokens) and digital art, many creators are now

using auction-based platforms to sell their work. Do you think auctions are an effective method for

selling digital art, considering the unique dynamics of the digital art market and the behavior of

collectors in this space? Explain your reasoning.

3. With the increasing interest in and adoption of cryptocurrencies, some argue that the role of central

banks could diminish in the future. How might the rise of decentralized digital currencies impact the

traditional functions of central banks, such as controlling inflation, regulating the banking sector, and

ensuring financial stability? Explain your reasoning.

Answer :

Topic: Given the rise in popularity of NFTs (Non-Fungible Tokens) and digital art, many creators

are now using auction-based platforms to sell their work. Do you think auctions are an effective

method for selling digital art, considering the unique dynamics of the digital art market and the

behavior of collectors in this space? Explain your reasoning.

In my opinion the emergence of Non-Fungible Tokens (NFTs) has revolutionized the way digital art is
bought and sold, with auction-based platforms becoming increasingly popular among creators and
collectors alike. In my opinion, auctions can be an effective method for selling digital art, especially
in the context of NFTs, due to several reasons. Firstly, auctions create a sense of scarcity
and exclusivity, driving up demand and allowing creators to fetch higher prices for their digital
artworks. This aligns with the unique dynamics of the digital art market, where scarcity is often
artificially created to increase perceived value. Additionally, auctions provide a transparent and
decentralized mechanism for determining the value of digital art, as prices are determined by
market forces rather than centralized entities. This can attract a broader range of collectors,
including those who may not have previously been involved in the art market.

Furthermore, auctions offer a level playing field for both established and emerging artists,
allowing their work to be discovered and appreciated based on its merit rather than on
traditional gatekeeping mechanisms. This democratization of the art market can foster greater
diversity and inclusivity, empowering artists from diverse backgrounds to showcase their talent
and reach a global audience. However, it is important to acknowledge that auctions may not be
suitable for all digital artists, as the success of an auction depends on various factors such as the
reputation of the artist, the quality of the artwork, and market trends. Moreover, auctions can
sometimes be unpredictable, leading to fluctuations in prices and uncertainty for both creators
and collectors.

In conclusion, while auctions can be an effective method for selling digital art, especially in the
context of NFTs, their success depends on various factors and may not be suitable for all artists.
Nevertheless, auctions offer numerous benefits such as creating scarcity, fostering transparency,
and democratizing the art market, making them a valuable tool for both creators and collectors in
the digital art space. As the market continues to evolve, it is important for artists to carefully
consider their options and choose the sales strategy that best aligns with their goals and aspirations.

Reference:

nft as a digital asset/ejournal.undiksha.ac.id