Crypto News | NFTs will act as high-end property during boom cycles
The former hedge fund manager says that top-tier NFTs essentially serve as status symbols and should see significant upside during crypto boom cycles.
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Real Vision CEO and Co-Founder Raoul Pal Believes Non-Fungible Tokens (NFTs) Will Act Similar to “Premium Property” in the Traditional Economy, Surpassing Ether ETH ($1,703) during crypto market boom cycles.
In an hour-long YouTube video posted on Feb. 20, a former executive at JPMorgan gave an overview of what he thinks is best for NFT, including the main uses of the class, its technology, and its performance against Ether.
Pal said that just as “premium assets” tend to outperform the market when the “economy recovers,” the same could happen to some NFTs during the crypto crisis. “So I can take my ETH and put it in JPEG, NFT. But what happened? Well, because as a high property and think about [Crypto] Punk as a high property in London or New York or Hong Kong or wherever, when wealth and the population started to increase and people have more money, they buy things expensive upscale property.
“It’s more common than other markets. I think the same thing will happen in the ETH economy,” he added. He pointed out that big collections like CryptoPunks and Bored Ape Yacht Club (BAYC) have become status symbols in the crypto community, like getting a nice house, car, or good thing from a famous brand that gives access to special clubs or items he called “network mini-states”.
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He said that NFTs serve as “a means of having assets in the ETH economy”, adding: “People joke that we like to explain things to people.”
Looking back, the former hedge fund manager said that NFTs began to catch his eye in 2022 as he began to “realize the power of what they are and what they can do”, such as the ability to transfer “value” through blockchains and automated smart systems agreement.
It also means the use of NFTs in contract decisions, noting that blockchain-based ledgers can provide verifiable insight into what has been agreed between people, while smart contracts can actually eliminate others that are unnecessary. “Now the interesting thing about the NFT smart contract is the fact that it automates the process of coding and solving without the need for a third party, so you don’t need courts, lawyers, notaries, and accountants.
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Pal said that since getting into NFT, he has allocated about 10% of his ETH to “premium NFT” like CryptoPunks and BAYC NFT.
He suggested that these stocks may offer higher potential than lower risk, as they have managed to maintain positive levels during bear markets. He also believes that the price of ETH may increase in the future.
“When you look at the prices of CryptoPunks and Bored Apes, they are still incredibly stable in ETH. Yes, they had a bubble and they went back and traded around 65 ETH forever. And I liked that because they didn’t fall too hard. They experienced a sharp increase in June during the Great Crypto Crash. But other than that, they rallied themselves and stayed at 65 ETH. So whatever ETH do, they reflect it,” he said.
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