Patrick Sisson of Bisnow, a national business publication with regional offices in major cities across the nation is recognizing the “rampant hype around NFTs, fueled….cryptocurrency billionaires.”
WAV Group was quoted in the article saying:
“Victor Lund, founder of California-based WAV Group, an advisory firm that focuses on new technologies and NFTs, said he believes real estate NFTs are a specialty that will quickly evolve, especially because of the increased interest in the space last year among developers, private equity and banks.
Cryptocurrency speculators, investors and acolytes want to eventually find a safe haven for profits and transfer vast sums of digital wealth into something more tangible. Lund said there is roughly $2 trillion invested in crypto today and an estimated $300B in NFTs, all of which, he said, is essentially “cash on the sidelines.”
The problem with crypto currencies is that they do not have much utility in real life today; it’s like Monopoly money. Unless you are playing the game of Monopoly with a group of players who agree to the value of it, it’s useless. The big news is that so many people, including Wall Street investment banks, are holding this currency and generating an appetite to discover new ways to diversify out of the currency and into other assets.
The only way we can explain this is by drawing the parallel to holding cash in your investment account rather than stock. As the article mentions, there is over $2T in crypto, and only a small amount of that is invested. The hottest investments in crypto has been focused on digital art. Remember, Web3 is all about creators. Musicians and digital artists are discovering a bountiful well-spring of collectors who are willing to trade crypto for art.
Keep your eyes peeled for information on this topic; 2022 will be a big year for Web3 – especially if retailers and their supply chain partners begin trading in crypto. If I can walk into a store (online or in real life) and swipe my venmo credit card and pay in crypto, it will provide a lot of utility to crypto. Try doing that with your monopoly money. Moreover, if Target is able to pay manufacturers in China for products in crypto and avoid currency fluctuations and possible tariffs – our economic foundation would shake.
As for NFTs in real estate – that is happening, albeit at a slow pace.