NFTs will become bigger than bitcoin because of their ability to record property ownership, Kevin O'Leary says | BossInVegas

NFTs will become bigger than bitcoin because of their ability to record property ownership, Kevin O'Leary says

Barely anyone had heard of NFTs in 2020, but they became a huge phenomenon the following year. More than $20 billion worth of the tokens changed hands throughout 2021, according to some estimates. The trend gained particular public attention after a collage by the digital artist Beeple, whose real name is Mike Winkelmann, was sold for a record $69 million.

  • The NFT market can potentially grow bigger and "more fluid" than bitcoin's, "Shark Tank" investor Kevin O'Leary told CNBC.

  • He says the ability of NFTs to serve as proof of ownership for physical items can fuel the market's growth.

  • Chainalysis said the NFT market in 2021 soared to $41 billion in value.

  • Despite betting that NFTs will surpass Bitcoin, Kevin O’Leary said he would hedge his bets and invest on “both sides of the equation.”

The market for non-fungible tokens, or NFTs, holds the potential to outstrip that of bitcoin because they can serve as proof of ownership for property, "Shark Tank" star investor Kevin O'Leary told CNBC.

“You’re going to see a lot of movement in terms of doing authentication and insurance policies and real estate transfer taxes all online over the next few years, making NFTs a much bigger, more fluid market potentially than just Bitcoin alone.”

Mr. Wonderful admitted, however, that he is not tied to that bet and will still be investing on “both sides of that equation.”

The former crypto skeptic told Cointelegraph in a recent interview that his change in tune toward blockchain and digital assets was due to the growing trend of regulators warming up across the globe over the past couple of years.

Not everyone agrees with comparisons between Bitcoin and NFTs, however, with CoinGecko co-founder and chief operating officer Bobby Ong telling Cointelegraph that it’s “probably not fair to compare Bitcoin, which is a single asset, to NFTs which are an entire sector.”

Ong did note that the NFT adoption curve in 2022 is only going to increase upward, as the sector is still in its early days:

“I think collectively if you look across all NFTs, and the fact that 2021 was year one of market adoption, there’s definitely still a lot of room to grow.”

“We’ve already got a set of ‘blue chip’ NFTs, but I think the industry is still barely scratching the surface of what NFTs could be and what they could do, particularly if the metaverse comes to fruition,” he added.

NFTs are digital representations of collectibles such as art, and O'Leary sees them capable of certifying ownership of real-world items such as watches and cars.

"We'll see what happens, but I'm making that bet and I'm investing on both sides of that equation," he said.

The NFT market's value swelled to $41 billion in 2021, blockchain data company Chainalysis said Thursday in updating a previous report. Trading surrounding NFTs exploded during 2021, with milestones including the $69 million sale of NFT artwork by auction house Christie's.

Meanwhile, bitcoin's valuation soared beyond $2 trillion during 2021, but has since pulled back and was around $821 billion on Thursday, undergoing a big selloff in recent sessions.

O'Leary in May 2019 called bitcoin "garbage" but he has since added the cryptocurrency to his portfolio. He's also said he has holdings in companies that are developing crypto products such as decentralized wallets.

From CNBC and CoinTelegraph
01/07/2022
Edited by BossinVegas

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