What Is Art? How Much Would You Spend On A Work Of Art/painting?

I am a skeptic when it comes to knowing the value of a piece of Art. For once, how can you differentiate between what may be authentic and what may be fake? For those who may be involved in this subject, Picasso holds a venerable position in the Artistic world and some of his paintings/art works easily command a rate of over a million dollars. Still, what is the big deal about this piece of works? I wont be surprised, though it has not been verified, if among a select group of the wealthy in America, owning a piece of Picasso might be considered a criteria in joining an echelon of the 'sophisticated' crowd in America.

A while back, John Stossel of ABC News did a documentary on Arts/Paintings. I can't recall what it was all about, but if my imagination serves me right, I think the journalist was even questioning the value of this work of art. Funny (and I would post the link later on), a piece of art that they bought for five dollars at a thrift store, it was rated highly. Strangely, another piece of art created by four years old were ranked higher than experienced artists, even by curators! Unbelievable but true? So my question is this . . . do you think that works of arts by Picasso and the rest of his contemporaries are overhyped by 'arts lovers'? My humble opinion. No piece of art is worth 10 million dollars, even if you are to include labor in it, but for 'art lovers', I might be termed 'unsophisticated'.