Non-fungible tokens otherwise referred to as NFTs, were a massive boom in 2021. Although they were launched last year, they were quick to gain traction, and before we knew it, the sector was already making sales worth tens of billions. This relatively new sector within the crypto industry has become incredibly important to investors. Even celebrities and other industries have jumped and joined the NFT wagon, not passing up the chance to earn a massive profit.
However, some people disliked NFTs, accusing participants of probably using them for money laundering or similar criminal activity. On the other hand, others understand the potential that NFTs offer and how they can provide incredible opportunities for creators and artists.
One of the latter is billionaire Ray Dalio, who has expressed his interest in dipping his toes in the NFT space, especially seeing how they have taken the crypto industry by storm.
Ray Dalio & NFTs
Dalio recently had an interview with Lex Fridman for the latter’s podcast, where they discussed various topics, including money and its impact, and of course, the crypto market. Dalio talks about a couple of notable topics in this episode, including the current NFT craze.
The billionaire investor tells the host that he plans on getting into NFTs. At first, he mentions how he wants to purchase one, but Fridman suggests that he mint one instead to know the process. Dalio agreed, saying that he should produce one.
However, Dalio also notes that even though NFTs and the crypto space, in general, are real industries, people should still apply a certain level of caution to new things and concepts. He adds that even though some things are, in fact, very real, there’s always the possibility that they won’t be around in the long run.
He uses the internet in the year 2000 as an example, saying, “like all new, real things, some are going to go, and some are going to… you know, it’s like the internet in the year 2000.”
A Competition of Monies
As you may have guessed, Dalio supports the crypto industry, and he has even revealed previously that he holds both bitcoin and ethereum in his portfolio, albeit not that much. Now, it appears he’ll be moving into the NFT space, which he thinks will work as an excellent competitor for the different currencies.
Dalio says that there will be competition among various types of monies, and bitcoin will be one of those competitors. He also mentions that even central banks will most likely develop their cryptocurrency.
In the case of NFTs, he notes that this sector could also become another type of money or currency in the future. In other words, investors will most likely pick and choose NFTs over cryptocurrencies like bitcoin regarding ownership preferences.