Raoul Pal, former executive at Goldman Sachs and founder of macro research firm Real Vision, stated in a post on X: "The investment I believe in the most for the next 10 years is crypto art. For me, it's the most fascinating, delightful, and interesting area among all cryptocurrencies."
The massive creation of crypto wealth and currency devaluation will drive astonishing demand for scarce ideal assets (digital real estate or digital art). The younger generation shows more interest in digital assets than in most physical assets.
If, as Michael Saylor said, BTC is like Manhattan real estate, then the best crypto art or NFTs are the most scarce and ideal block space, which is obvious.
Furthermore, as people ascend the crypto wealth curve, you will soon realize that the cost of holding physical property as an investment is high, while it is better as a lifestyle asset. Art fills this gap, and the long-term holding cost of crypto art is extremely low. Like property, if you wish, it can also be used as collateral.
At the same time, we are creating a mechanism to tokenize culture and community (or more clearly, to create tangible value from previously intangible assets). Culture has a fundamental importance to us on a human level at the meta level. It makes us human, and Web3 realizes this.
We have already seen the Lindy Effect of art that is considered to have lasting cultural or artistic value, similar to the cycle that truly established Bitcoin from 2013 to 2017. So far, only a few crypto artists have achieved a true Lindy Effect, but I expect that from 2018 to 2021, more artists, including emerging artists, will achieve significant long-term value.
Financially, most high-quality digital artworks are priced in ETH, and over time, their performance often outpaces ETH. For example, the performance of Beeple's series this year could be 3 times that of ETH.
Ultimately, the world of crypto art is an incredible community made up of passionate artists, collectors, and patrons who are all mavericks from the fields of art, technology, finance, and more, all trying to create a new asset class and a new medium of art. As holograms and holographic decks become the primary matrix of digital life, these mediums will undergo tremendous changes over time.
Another fact is that entering the art world is not easy and can be intimidating and confusing. But fortunately, we have taken the first step with culturally relevant pfp NFTs, which is the right entry point for most people. In our increasingly digital world, the necessity of community social signals and status will only grow.