Former Goldman Sachs executive and founder of the macro research institution Real Vision, Raoul Pal, stated on X: “The investment I am most confident in for the next 10 years is crypto art. For me, this is the most captivating, enjoyable, and interesting field among all cryptocurrencies.
The massive creation of crypto wealth, along with currency depreciation, will drive astonishing demand for scarce ideal assets (digital real estate or digital art). The younger generation's interest in digital assets surpasses that of most physical assets.
If, as Michael Saylor says, BTC is like real estate in Manhattan, then the best crypto art or NFTs are the most scarce and ideal block spaces, which is evident.
Moreover, as people climb the crypto wealth curve, you will soon realize that the cost of holding physical property as an investment is high, while as a lifestyle asset, it is better. Art fills this gap, and the long-term holding cost of crypto art is extremely low. Like property, it can also be used as collateral if you wish.
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 human-level importance to us on a meta level. It makes us human, and Web3 realizes this.
We have already seen the Lindy effect of art considered to have lasting cultural or artistic value, similar to the 2013 to 2017 cycle that truly established Bitcoin. So far, only a few crypto artists have achieved a true Lindy effect, but I expect that more artists will gain significant long-term value from 2018 to 2021, including emerging artists.
Financially, most quality digital artworks are priced in ETH, and over time, their performance often surpasses that of ETH. For example, the performance of Beeple's series this year could be three times that of ETH.
Ultimately, the world of crypto art is an incredible community made up of passionate artists, collectors, and patrons, all of whom are mavericks from art, technology, finance, and other fields, trying to create a new asset class and new artistic medium. As holograms and holographic decks become the main substrate of digital life, these media 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. The necessity of community social signals and status will only increase in our increasingly digital world.