Ex-Goldman Sachs exec says NFTs will serve as ‘high-end property’

0
11
Ex-Goldman Sachs exec says NFTs will serve as 'high-end property'

Former Goldman Sachs Group executive Raoul Pal has predicted that non-fungible tokens (NFTs) will outperform Ethereum’s Ether during future crypto market boom cycles, as “high-end property” does when the “economy recovers.”

The CEO and co-founder of Real Vision laid out in an hour-long YouTube video on February 20 what he was most optimistic about NFTs, including important use cases for the asset class, its underlying innovation and its prospective performance relative to Ether.

Pal said that as the economy improves and people’s incomes rise, investors are more likely to invest in high-end properties. He also pointed out that major collections like the Bored Ape Yacht Club (BAYC) and CryptoPunks have become status symbols in the crypto community, like owning a luxury house, car or item from a well-known brand. These things give people access to exclusive clubs, which he called “mini network-states.”

The ex-hedge fund manager recalled that in 2022, he became interested in NFTs as he began to comprehend their potential and capabilities. For instance, he realized that NFTs could enable the transfer of value through blockchains and automated smart contracts.

He also discussed how smart contracts and blockchain-based ledgers could eliminate the need for intermediaries when enforcing agreements between parties.

Pal explained that NFT smart contracts are interesting because they allow settlements to be “automated in code and resolves without needing a third party,” so individuals don’t require courts, attorneys, notaries and accountants.

Since Pal began trading NFTs, he said he had invested about 10 percent of his ETH in “quality NFTs,” such as CryptoPunks and BAYC NFTs.

He believes these collections have more potential for gains than risks, as they have maintained a respectable level of value even during a market downturn.

Pal noted that the prices of CryptoPunks and Bored Apes have remained quite steady when denominated in ETH. Despite experiencing a significant spike in value and subsequent drop, these collections have been trading at around 65 ETH for a long time.