NFTs will function as high-end properties in boom cycles: CEO of Real Vision
NFTs will function as high-end properties in boom cycles: CEO of Real Vision
#NFTs #function #highend #properties #boom #cycles #CEO #Real #Vision Welcome to InNewCL, here is the new story we have for you today:
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Real Vision CEO and co-founder Raoul Pal believes that non-fungible tokens (NFTs) will behave similarly to “high-end real estate” in the traditional economy and will outperform Ether (ETH) during crypto market boom cycles.
In an hour-long YouTube video published on Feb. 20, the former JPMorgan exec offered an overview of what he found most optimistic about NFTs, including key use cases for the asset class, the underlying technology, and its potential Performance compared to Ether.
Boom! Please…
My in depth thesis and understanding of NFTs, what they mean, where they are going and why they are important and more.. It’s all I have for now but it will evolve!
I think it’s a really important piece. Appreciate any feedback! https://t.co/JMOdBnmrxh
— Raoul Pal (@RaoulGMI) February 20, 2023
Pal said that just as “high-end real estate” often outperforms the market when the “economy recovers,” so too will likely be the case for certain NFTs during crypto boom cycles.
“So I can take my ETH and put it in a JPEG, an NFT. But why? Well, similar to high-end real estate and think of a (crypto)punk as high-end real estate in London or New York or Hong Kong or wherever it is when the economy starts to boom and people have more money, they tend to buy expensive, high-end properties.”
“And it tends to outperform the rest of the market. And I think the same will happen in the ETH economy,” he added.
He emphasized that large collections like CryptoPunks and Bored Ape Yacht Club (BAYC) have become status symbols in the crypto community, much like owning a luxury home, car, or item from a famous brand that gives access to exclusive clubs, or what he referred to as “mini-network states”.
He suggested that NFTs serve as a “route to owning property in the ETH economy,” adding:
“People are ridiculous and we love signaling things socially.”
Looking back, the former hedge fund manager said NFTs started to get his attention in 2022 when he began to “understand the power of what they are and what they can do,” such as the ability to ” Value” contracts to transfer via blockchains and automated intelligence.
He also pointed to the use of NFTs in contract resolution, noting that blockchain-based ledgers can provide verifiable transparency into what has been agreed between people, while essentially eliminating unnecessary third parties from smart contracts.
“What’s interesting about the smart contract element of an NFT is the fact that it allows for some sort of automation of the billing mechanism in the code and is solved without the need for a third party, so you don’t need the courts, you don’t need the lawyers, you don’t need the notaries and you don’t need the accountants.”
Pal explained that since getting into NFTs, he has invested about 10% of his ETH holdings in “premium NFTs” like CryptoPunks and BAYC NFT.
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He suggested that such collections may offer more upside potential than downside risks as they have managed to maintain reasonable levels of value during the bear market. He also believes that the price of ETH is likely to increase in the future.
“If you look at the price of Crypto Punks and Bored Apes, they have remained incredibly stable in ETH terms. Yes, they had a blow off top and came back and traded around 65 ETH forever. And that’s interesting to me because they didn’t fall much further. They had a sharp surge in June in the major crypto meltdown. But other than that, they just rebounded and stayed at 65 ETH. Whatever ETH does, they just reflect it,” he said.
