The NFT market has crashed, but some people think things are going to get a lot worse if we enter a long recession.
Supposed “blue chips” like BAYC, Cryptopunks, Doodles, Cool Cats are all down significantly from their peaks, and more projects are delaying their launch because of market conditions. It’s not looking great at all, but to be fair it isn’t an NFT specific situation; we’re seeing all markets melt as investors grapple with a changing macro economic climate.
In this video I discuss the common argument that NFTs will do worse than other markets if we hit a long term recession, and that their entire existence might only be a product of a bull run that went too long.
What people are really referring to is the expected drop in consumer spending that happens during recessions. This is true, but as you’ll see there are huge shifts in consumer behavior that will more than offset that weakness in overall demand.
NFTs will benefit from a migration of entertainment and luxury goods from the physical world to the digital, and all the signs tell us that we’re about to see an avalanche of products coming from some of the largest consumer brands in the world, something that would surely increase the addressable market for NFTs (not hard to do given how small it is currently).
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0:00 start here
1:08 why experts think NFTs will keep crashing
3:22 the HUGE shift in consumer behavior (important)
5:56 luxury goods are a big deal
6:59 RIP offline spending
8:06 the short term death spiral…
9:14 the coming buyers market
10:58 the big question