On the surface, the supply and demand relationship in the art market is one of oversupply.
At a deep level, good art has always been in short supply.
This is directly reflected in the lack of activity in the art market, which also causes a situation of unequal information.
Sellers feel that selling does not bid (do not sell), buyers feel that it is even less worth (do not buy).
The lack of market activity is due to the inability to exercise the options that should have been available.
Art buying and selling is a big deal, you can't find your favorite 'umbrella', buyers prefer to 'get wet'.
The principle of establishing a buyer's market
Then it is reasonable to establish a buyer-oriented art market trading mechanism at this time.
Buying instead of selling the essence shows that opaque information brings about unequal choices.
Who has the real choice is going to dominate the market. Who dominates, who has the advantage.
Then we want to solve the embarrassing situation of art buyers in the market, which can be done by changing the role of buying and selling.
That is, to give consumers (buyers) real choice.
Traditional producer-oriented transactions: producers→ middlemen → consumers
A new consumer-oriented way of transacting: consumers→ middlemen → producers.
The consumer here is the art seeker and, in a sense, the producer.
Purchasing power is produced, and through channels, it is sold to the right producer, and the producer takes the item in exchange for purchasing power, and the producer is the consumer.
The transformation of the buying and selling relationship gives the buyer a real say: once the buyer makes a quotation, the seller can match it by himself, but the choice is in the hands of the buyer.
In this way, buyers are more willing to enter the market. Sellers are also more willing to give it a try, in case they choose!
Then, more artworks will flow into the market and more buyers will enter the market, which is a virtuous cycle (positive feedback) process.
Buyers will also have more choice, choose their high-quality ones to buy.
This flexible trading method of buyers will gradually purify the pompousness of the market, and will also restore the psychological health of collectors.
This will be an increasingly good trading mechanism.
How to solve the middleman problem
Of course, we also have to solve the problem of middlemen, which requires the use of blockchain technology.
Blockchain is characterized by decentralization and irreversibility of data.
This technology allows collectors to hold the first resource and also have the right to encrypt data.
It effectively avoids the economic losses caused by improper middlemen.
The buyer sends the purchase information and transaction money to the blockchain through the first account terminal (Tongbao), and the blockchain sends the buyer's relevant account information to Tongxin hardware, and Tongxin feeds the result back to the blockchain.
The seller goes to match the price, uploads all aspects of the artwork information to Tongxin, and the seller makes his own choice while protecting the privacy of the collector.
The core point is the buyer's choice autonomy, which is also the advantage of the blockchain protection mechanism.
The disadvantage is that the full amount of the pre-purchase money is actually placed on the blockchain.
But the difference is that controlling the first account by yourself is equivalent to making a platform for yourself and asking for purchases on your own platform.
If buyers want more choice, then extend the purchase period;
If you feel that the pre-order money is not safe to keep in the account, then the deadline is shorter.
The purpose of the increased flexibility is to increase the entry of buyer players.
When there are enough buyers entering the market, it is accompanied by a high density of art entering the market.
Just like 'the highest price wins', good artwork will come to the end.
This is a meaningful step for the collection – the discovery of high-value folk art.
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