Former Goldman Sachs executive Raoul Pal says the potential of one crypto sector is being massively underestimated by everyone.
In a lengthy Twitter thread, Pal tells his 984,000 followers that non-fungible tokens (NFTs) could reshape almost every aspect of societal infrastructure.
The Real Vision founder says that currently, most people think NFTs predominantly pertain to cultural purposes, such as art, community or brands. However, Pal says this is only the tip of the iceberg.
“While the tokenisation of culture is almost infinite and has only just started, most people miss the even bigger picture…
ALL contracts will get tokenized as NFTs as they more efficient, cheaper, faster and more secure.
ALL: ID, tickets, reservations (hotels, airlines, trains, restaurants etc), all insurance contracts, internet permissions, hotel keys, car documents, real estate, certifications…
advertising, supply chain contracts, inventory management, business deals, driving licenses, medical records, employment history, references, etc etc… but it gets even bigger…”
The macro expert says that the entire financial industry – quadrillions of dollars worth of value – could ultimately be forced to integrate with NFT and blockchain technology.
“The entire financial industry is based around contracts at a truly VAST scale – too big for the old City of London ‘My Word is My Bond’ system to work and a two party, audited ledger/database….
There are somewhere between $650 trillion and $4 QUADRILLION of derivatives, $250 trillion of equities, same in bonds, etc. These are all non-fungible contracts of sorts (some are large and some are one of ones like a special over-the-counter option)..
All asset management and funds will be tokenized too. It is much faster, accessible, transparent and more efficient.
AND the ‘smart’ element of NFTs mean that enforcement or dispute resolution is automatic, cheaper and faster, as is ‘storage or ownership.'”
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