Raoul Pal Highlights Crypto Art As A Promising Investment

According to Odaily, Raoul Pal, former Goldman Sachs executive and founder of macro research firm Real Vision, recently expressed his strong belief in crypto art as a 'set it and forget it' investment for the next decade. Pal described crypto art as the most captivating and enjoyable sector within the cryptocurrency space. He anticipates that the creation of substantial crypto wealth and currency devaluation will drive significant demand for scarce ideal assets, such as digital real estate or digital art. Pal noted that younger generations show more interest in digital assets compared to most physical assets. He likened Bitcoin to Manhattan real estate, suggesting that the best crypto art or NFTs represent the most scarce and desirable digital spaces. As individuals climb the crypto wealth curve, they may realize that physical property is costly to hold as an investment, whereas it serves better as a lifestyle asset. Art, particularly crypto art, fills this gap with low long-term custody costs and can be used as collateral if desired. Pal also highlighted the development of mechanisms to tokenize culture and community, creating tangible value from previously intangible assets. He emphasized the cultural significance of art at a human level, which Web3 facilitates. The Lindy Effect, which suggests that art with enduring cultural or artistic value will persist, has been observed in crypto art, similar to Bitcoin's establishment between 2013 and 2017. While only a few crypto artists have achieved this effect, Pal expects more artists from 2018 to 2021 to gain substantial long-term value, including emerging artists. Financially, most high-quality digital artworks are priced in ETH and tend to outperform ETH over time. For instance, Beeple's series reportedly performed three times better than ETH this year. Pal described the crypto art world as an incredible community of passionate artists, collectors, and patrons from diverse fields, all striving to create a new asset class and art medium. As holograms and holographic decks become integral to digital life, these mediums will undergo significant changes. Pal acknowledged the challenges of entering the art world, which can be intimidating and confusing. However, he sees culturally relevant profile picture NFTs as a suitable entry point for most people. In our increasingly digital world, the necessity for community social signals and status will only grow.