Former Goldman Sachs executive and macroeconomist Raoul Pal believes that the cryptocurrency asset sector will perform exceptionally well over the next decade.
Growth Potential of the NFT Sector
Pal stated on the social media platform X that the development of the non-fungible token (NFT) sector is likely due to the devaluation of fiat currencies and the increasing popularity of digital assets among younger generations.
“My high-conviction ‘set it and forget it’ investment for the next decade is crypto art. For me, it is the most attractive, enjoyable, and interesting area in the entire crypto space. Young generations are more interested in digital assets than most physical assets. As MicroStrategy founder Michael Saylor puts it, while BTC is Manhattan real estate, the best crypto art or NFTs are the rarest and most sought-after items across all blockchain spaces.”
Effectiveness of NFTs as Investments
Pal also points out that NFTs can be owned in a more cost-effective and efficient manner compared to physical assets.
“As people progress up the crypto wealth curve, they realize that carrying physical property as an investment is expensive and more suitable as a lifestyle asset. Art fills this gap, and crypto art is extremely inexpensive for long-term storage.”
Pal notes that NFTs are already being utilized more as long-term investments.
“Art NFTs have grown significantly. My current strategy is to buy and hold the best artists (new or old), as demand will rise over time while supply will erode in the market over decades.”
As the supply of NFTs diminishes, demand is expected to increase. Pal emphasizes that NFTs will play a crucial role in the future of digital art and will be an attractive option for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
