Various use cases for digital assets, as exemplified by NFT tokens, increase their value as such. This was stated by the head of the New York venture capital firm North Island Ventures Glenn Hutchins in a commentary to CNBC.
“The right #cryptocurrencies are more like copper or platinum than gold because they have use cases and they rise and fall not just as a store of value but as their in use,” says North Island’s Glenn Hutchins, who first bought #bitcoin at ~ $ 100 in 2016. pic.twitter.com/1Et8uGDfGI
– Squawk Box (@SquawkCNBC) March 9, 2021
In support of his point, he talked about the collectible cards in the NBA Top Shot game that users can exchange online. The uniqueness and availability of each token increases its value.
According to Hutchins, the shift from the real world to digital is part of a broader macroeconomic trend.
“The right cryptocurrencies are more like copper or platinum than gold because they have use cases. They grow and fall not only as a store of value, but also in the value of their application, ”he said.
Recall that Glenn Hutchins, who previously denied the convenience of cryptocurrency for crime , first bought bitcoin in 2016 at a price of about $ 100.