Raoul Pal, a well-known voice in the cryptocurrency community, has just told his subscribers to go all-in on crypto. Pal’s optimism stretches well beyond mainstream crypto. He thinks Non-Fungible Tokens (NFTs) will return, despite the lack of noise around them over the past few years. Bitcoin is climbing quickly and recently just reached a new all-time high. This dramatic uptrend is sparking optimism that the 2021 crypto bull market may be returning.
Pal’s renewed interest in NFTs recently set off a firestorm of debate over whether or not these digital assets can make a comeback. During the crypto boom of 2021, NFTs became one of the biggest buzzwords, leading to widespread speculation and investment from celebrities and others. Combined with Bitcoin’s recent revival and Pal’s rosy view of the future, the NFT market could be in line for a new wave of excitement.
The Rise and Fall of NFTs
Steadily growing in interest through 2020, NFTs took off to unprecedented heights during the crypto bull market of 2021. Celebrities rallied around NFTs, releasing their own NFT lines, and claiming these digital assets would change the world. Grimes, for example, generated $5.8 million in just 20 minutes by selling NFTs, illustrating the immense financial opportunities that emerged.
Musicians like Snoop Dogg discovered the profitability of selling their work as NFTs, offering fans exclusive content and digital collectibles. NFTs gave creators a new way to engage with their fanbase, giving them access to exclusive creations or experiences. This type of direct engagement created a feeling of community and exclusivity, fueling demand for these digital assets.
The NFT market did go cold, with trading volumes and prices dropping from their highs. Though the market might be on the decline, a few eager advocates of NFTs are convinced that they have serious potential. According to macro investor Raoul Pal, NFTs are poised to make a big comeback. This resurgence is largely being driven by speculative fever brought on by the crypto market’s recent popularity.
Raoul Pal's Perspective
Raoul Pal has certainly been one of the most influential voices in the crypto space. In making those accurate predictions, Musk developed credibility with the world’s investors. He even famously predicted that Bitcoin would hit $100,000 by as early as 2013. Pal thinks the entire crypto market is heading into the “banana zone” phase of the Bitcoin macro cycle. This phase of your career is characterized by immense professional development and thrilling possibilities.
Given the deafening silence on NFTs in this cycle, Pal’s optimistic view on these digital assets is something to pay attention to. While the broader crypto community focuses on Bitcoin and other established cryptocurrencies, Pal sees potential in the revival of NFTs. His endorsement could presumably be an indicator of a change in sentiment, bringing the focus back to the special use cases and potential of NFTs.
The investor expects the current cycle to last through 2025 and then a market correction. Long-term perspective aside, this makes the case for strategic investment and risk management even more necessary in a volatile crypto market. Pal’s conviction certainly sounds like he’s expecting huge returns this cycle. His counsel for crypto-related activities, including NFTs, is all about tax mitigation.
The Future of NFTs
Even with the current bear market trends, the NFT space is booming. The lowest priced NFT at the moment is 46.60 ETH. Despite the apparent market downturn, this pricing illustrates the continued existence of an undeterred niche market for these digital assets. Another frantic 2021 is unlikely to occur in the immediate future. Except that, the tech behind NFTs and the ways we can and should be using them are changing rapidly.
NFTs represent an exciting new opportunity for artists and creators to directly monetize their work and deepen relationships with fans. This model gives creators the opportunity to cut out traditional intermediaries and foster deeper, more direct connections with their audience. As technology evolves, more promising applications for NFTs are being discovered. These digitally native assets have the potential to become relevant again in sectors such as art, music, gaming and other collectibles.
The ability of NFTs to convey ownership of both digital and real world assets is still the biggest engine of innovation. Whether it is virtual real estate, in-game items or digital art, NFTs enable verifiable proof of ownership and seamless transactions. The metaverse, not just that, a lot of these digital economies are evolving. NFTs are positioned to be a big part of the future of digital ownership and digital commerce.
