NFTs will act as high-end property during boom cycles: Real Vision CEO

cointelegraph.com:

Real Vision CEO and co-founder Raoul Pal believes nonfungible tokens (NFTs) will act similar to “high-end property” in the traditional economy, outperforming Ether (ETH) during crypto market boom cycles.

In an hour-long YouTube video published on Feb. 20, the former JPMorgan executive offered a run-down of what he felt most bullish about when it came to NFTs, including key use cases for the asset class, its underlying tech, and its potential performance relative to Ether.

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Pal said just as “high-end property” often outperforms the market when the “economy recovers,” the same is likely to occur with certain NFTs during crypto boom cycles.

“And it tends to outperform the rest of the market. And I think the same thing will happen in ETH economy,” he added.

He highlighted that major collections such as CryptoPunks and the Bored Ape Yacht Club (BAYC) have become status symbols in the crypto community, much like owning a luxury house, car, or item from a famous brand, which offer access to exclusive clubs, or what he dubbed as “mini network-states.”

He suggested that NFTs serve as a “way of owning property in the ETH economy,” adding:

Looking back, the former hedge fund manager said NFTs started to draw his attention in 2022 as he started to “understand the power of what they are and what they can do,” such as being able to transfer “value” via blockchains and automated smart contracts.

He also pointed to NFTs' uses in the resolution of contracts, noting that