In an era of exponential currency devaluation, cryptocurrencies and non-fungible tokens (NFTs) can help investors protect their eroding purchasing power, according to analysts and industry leaders.
Global Macro Investor founder and CEO Raoul Pal stated that investing in digital assets is becoming increasingly important in a "world of exponential times and currency devaluation."
"You don't own enough cryptocurrency. When you own enough cryptocurrency, you don't own enough NFTs because art is upstream of wealth. Both will never be this cheap again," Raoul said in a speech.
He also added in another response that NFTs are "the only best long-term store of wealth that I know of, and you can buy them before the network effects kick in."
Nansen research analyst Nicolai Sondergaard wrote, "The idea that NFTs, extending to artworks, become tools for the wealthy after reaching a certain level of wealth, has some merit." He referred to this as a "natural move" for asset diversification.
He told Cointelegraph, "For traders and investors lower on the wealth curve, NFTs are partly about speculation on future returns." He added that NFTs also benefit from the appeal of strong communities, not just wealth creation.
Author and intergovernmental blockchain expert Anndy Lian stated that if NFT collectibles can break free from "speculative frenzy," art NFTs may see a revival as "digital ownership gains acceptance among younger, tech-savvy groups."
However, Anndy pointed out that broader adoption depends on blockchain networks improving scalability and security to "enhance confidence." He added that art NFTs "must move beyond hype and anchor value in cultural significance or utility."
Some digital artists have earned millions through NFTs. Digital artist Mike Winkelmann (also known as Beeple) auctioned his NFT artwork "Everydays: The First 5000 Days" for a record-breaking $69 million in March 2021.
Meanwhile, the largest NFT collections continue to lack upward momentum, failing to recover to their 2021 highs.
According to NFTpricefloor data, the floor price of the largest NFT collection by market cap, CryptoPunks, is currently 46 Ethereum (ETH), down 59% from the peak of 113.9 ETH recorded on October 9, 2021.
Despite the current lack of interest, NFTs may gain more momentum after profits from the Bitcoin (BTC) cycle peak rotate into other digital assets.
CryptoSlam NFT data platform and SlamAI strategist Yehudah Petscher stated, "This could set the peak of the NFT market in the first quarter of 2026, but don't expect a repeat of the frenzy from the 2021 to 2022 NFT boom."
He told Cointelegraph, "We may be a whole cycle away from seeing a parabolic rise in NFTs." He added:
"2030 is brewing a perfect storm: BTC reaching $1 million, a mature metaverse, AI reshaping labor economics (whether through universal basic income or high income for all, reduced production costs, etc.), the proliferation of AR/VR, and NFT ownership equating to brand ownership."
However, Yehudah noted that the previous NFT bull market was primarily driven by metaverse speculation and wealthy traders—factors that are largely absent in the current cycle.
Related: SEC Commissioner Peirce clearly states: NFT royalty mechanisms do not constitute a security classification.
This article does not contain investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Opinion: In an Era of Exponential Currency Devaluation, You Don't Own Enough Cryptocurrency and NFTs”
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