Real Vision CEO believes NFT will act similar to high-end property
Terrill Dicki Feb 23, 2023 09:48
The Real Vision CEO predicted that when the crypto market swells again, high-end NFTs would be bought like high-end property.
Raoul Pal, CEO and co-founder of Real Vision, speculates that nonfungible tokens (NFTs) would behave similarly to "high-end property" in the old economy and will outperform Ether (ETH) during boom cycles in the cryptocurrency market.
The former executive at JPMorgan offered a rundown of what he felt most bullish about when it came to NFTs in a video that was uploaded to YouTube and published on February 20. The video lasted one hour and covered topics such as key use cases for the asset class, its underlying technology, and its potential performance in comparison to Ether.
According to Pal, in the same way that "high-end property" often outperforms the market when the "economy rebounds," it is expected that the same will occur with specific NFTs during boom cycles in the cryptocurrency market.
"Therefore, I am able to transfer my ETH into a JPEG, which is an NFT. However, why? If you like, you can think of a [Crypto]Punk as a high-end property in London or New York or Hong Kong or wherever it is, and when the economy starts booming and people have more money, they tend to buy expensive high-end property. "Well, because much like high-end property and think of a [Crypto]Punk as a high-end property in London or New York or Hong Kong or wherever it is.
In addition to this, it has a history of outperforming the majority of the market. And I believe the same thing will take place in the ETH economy," he went on to say.
He brought attention to the fact that major collections such as CryptoPunks and the Bored Ape Yacht Club (BAYC) have become status symbols in the cryptocurrency community. This is analogous to the fact that owning a luxury home, car, or item from a well-known brand provides access to exclusive clubs or what he referred to as "mini network-states."
NFTs, he said, provide a "means of owning property in the ETH market." He went on to say that humans are "stupid" and that we "love to socially signal things." ETH is a cryptocurrency.
In retrospect, the former manager of a hedge fund stated that it was the year 2022 when non-fungible tokens (NFTs) first began to attract his attention because he began to "understand the power of what they are and what they can do." This included the ability to transfer "value" using blockchains and automated smart contracts.
He also brought up the applications of NFTs in the resolution of contracts, saying that blockchain-based ledgers can offer verifiable transparency on what has been agreed upon between people, while smart contracts can, in essence, do away with the need for unnecessary third parties. He cited these applications as an example.
"Now, what's interesting about the smart contract element of a networked financial transaction is the fact that it kind of allows for the settlement mechanism to be automated in code and resolves without the need for a third party, so you don't need the courts, the lawyers, the notaries, and the accountants,"
Pal said that ever since he began investing in NFTs, he has placed around ten percent of his ETH holdings in "premium NFTs," such as CryptoPunks and BAYC NFT.
As a result of the fact that such collections have been able to maintain a respectable level of value throughout the bad market, he hypothesized that they may possibly provide greater upside potential than negative danger. He is also of the opinion that there will be a rise in the price of ETH in the future.
"When measured in terms of ETH, the prices of CryptoPunks and Bored Apes have shown an astonishing lack of volatility over the last several days. Yes, they had a blow-off top, and once it subsided, they returned and have been trading about 65 ETH ever since. And the fact that they didn't fall too much farther is something that fascinates me about it. During the large crypto market crash in June, they had a strong rise. Aside from that, though, they have just made a comeback and have maintained their position at 65 ETH. Therefore, whatever ETH does, they are just replicating it," he said.
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