A lack of regulation and research, as well as the wild fluctuation in price, has seen International Adviser steer away from reporting too much on cryptoasset investing.
Striped down to its basics – a digital asset is an asset class that sits on a blockchain ledger. Blockchain records the movement of assets from A to B and records it on an distributed ledger.
Digital assets fall into a few main categories:
- Cryptocurrency – a digital asset used as a method of payment;
- Utility token – a non-backed asset class, does not represent any form of ownership;
- Digital securities – a digital asset that is pegged to equity or debt in a company and is a form of raising capital for the company’s development;
- Stable coins – a method of payment that is pegged to something like the US dollar or gold; and
- Non-fungible tokens (NFTs) – a digital asset that can be used to prove original ownership of an asset like a painting or work of art. There may only be…