Mike Novogratz's venture firm Galaxy Digital sees a bright future for non-fungible tokens (NFTs) built atop the Bitcoin blockchain.
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In a recent research report, the New York-based firm forecasted the market size of Bitcoin-based NFTs even in "base case" is poised to hit $4.5 billion by 2025.
The firm's analysts acknowledged that Bitcoin-based digital collectibles are currently limited from the technical point of view compared to those rolled out on the Ethereum blockchain.
However, they say the NFT use-case alone is enough to "dramatically widen the scope of Bitcoin's cultural impact." They added:
"The addition of sizeable data storage with strong availability assurances opens up a variety of use-cases, many of which are only beginning to be explored, including things like new types of decentralized software or bitcoin scaling techniques."
Galaxy also suggests that in bear case the market cap of Bitcoin NFTs can reach $1.5 billion. The bear case for Bitcoin means that NFTs would only focus on generative art without any utility (e.g., QQL Mint Pass, FlyFish) and wouldn't be used as profile picture projects like Bored Ape Yacht Club on Ethereum.
Nonetheless, there's also a bull case scenario, which suggests the market cap might hit the $10 billion mark should the network increase the number of projects and add new NFT categories such as real-world assets.
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