A New Asset Class of Digital Investment

The digital realm has become an integral part of our daily lives. It has brought investments closer to the people, as they have become simpler and more accessible. Consequently, financial instruments such as stocks, bonds, mutual funds, and ETFs have undergone rapid digital transformation. The landscape has undergone an evolution with the advent of blockchain, which is heralding a new era of digital investments: crypto-assets. Cryptocurrencies originated with bitcoin, the world’s first decentralized, peer-to-peer money, in 2009. While the fundamental idea behind bitcoin was to establish a safe and anonymous mechanism to transfer funds, people also recognized its potential as a store of value. Crypto-assets are expanding fast and have reached a market valuation of over $1.03 trillion in about twelve years. The industry even clocked an all-time high of $3 trillion in November 2021. Following an initial boom that saw Ethereum and its smart contract platform rival bitcoin in popularity, other cryptocurrencies (altcoins) began flooding the market enormously, offering security, exponential industry growth, outsized returns, inflation hedge, and portfolio diversification. While crypto has gained popularity as a digital investment, some overlook the utility and purpose factors, which have caught the attention of many. More than Just a Digital Investment Unlike traditional stocks, holding crypto-assets provides actual utility: in...