Cryptocurrencies and NFTs Seen as Hedge Against Currency Debasement
Investing in digital assets, particularly cryptocurrencies and NFTs, can provide a hedge against inflation and currency devaluation, according to industry leaders and analysts.
Expert Insights
Founder and CEO of Global Macro Investor, Raoul Pal, noted:
“You don’t own enough crypto. When you do, you don’t own enough NFTs, as art is upstream of wealth. Both will never be this cheap again.”
Pal further stated in a separate response that NFTs represent:
“The single best long term store of wealth I know and you get to buy it before network effects kick in.”
According to Nicolai Sondergaard, Research Analyst at Nansen:
“There is some validity to the statement that NFTs, and in extension art, become a vehicle for the wealthy once a certain level of wealth is reached. This represents a natural move for asset diversification.”
Sondergaard also pointed out the speculative nature for other investors:
“For traders and investors, further down the wealth curve, NFTs are partially about speculating on future returns.”
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Advancing the conversation, Anndy Lian, author and intergovernmental blockchain expert:
“Art NFTs may see a resurgence if collections manage to move past the speculative fervor and gain broader acceptance among younger demographics.”
However, adoption depends on blockchain scalability and security improvements.
“Art NFTs must transcend hype, anchoring value in cultural significance or utility.”
Some digital artists have achieved significant success through NFTs, with digital artist Mike Winkelmann (Beeple) setting a record by selling his NFT artwork for ~$69 million in March 2021.
However, market sentiment reflects challenges:
“CryptoPunks, the largest NFT collection by market capitalization, is currently trading at a floor price of 46 Ether (ETH), 59% down from its peak recorded on Oct. 9, 2021, NFTpricefloor data shows.”
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NFT Market Set for Early 2026 Recovery?
Despite current sluggishness, analysts foresee a potential recovery:
CryptoSlam strategist Yehudah Petscher suggests:
”That likely puts the peak of the NFT market in Q1 2026, but don’t expect a repeat of the 21/22 euphoria that we saw in NFTs.”
Petscher outlined his prognosis and future expectations:
”There is a perfect storm brewing for 2030: BTC at $1 million, a matured metaverse, AI reshaping labor economics, AR/VR adoption, and NFT ownership equaling ownership of a brand.”
He noted a key difference from the last bull run though:
”However, the previous NFT bull market was largely driven by metaverse speculation and wealthy traders — factors largely absent in the current cycle.”
Interestingly, the upcoming shift to recovery might come after Bitcoin profits peak:
“Despite the temporary lack of interest, NFTs could be poised to see more momentum after the profits from Bitcoin’s cycle top start rotating into other digital assets.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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