Categories: Cryptocurrency News

The Era of Digital Currencies

The various types of digital assets are available in the market, however, the digital currencies are the one that can be widely used at present as per the valid source from the PwC Switzerland. Needless to say that there are some differences between digital assets and digital currencies.
According to Stadler (a senior authority at PwC), digital assets can be divided into three types namely Bitcoin (BTC), Utility Tokens and Security Tokens. Further, he said that the currencies like Bitcoin (BTC) can be used in both ways like a payment instrument and a payment network in equal measure where the transaction can be executed without any involvement of any intermediary or central authority. Whereas the Utility Tokens are fuel to use software or services.

However, Ethereum based smart contracts can be used for speculation which may have more similarity between BTC and ETH.

The third one digital asset is Security Tokens which is in the form of digital securities like shares in companies or rights to future profits from a project. Accordingly Standler, the Security Tokens can be tricky due to its nature in place especially from a regulatory perspective because they are likely to be in the same way how Initial Public Offers (IPO) takes place.

When it comes to defining a variety of digital assets in place, Stadler concludes his remarks that despite the speculative nature in place, the digital assets can be very much useful especially on transition perspective. The Bitcoin (BTC) is considered a long-term investment while doing portfolio planning as it grows every now and then and people accepted it as a means of payment.

An excerpt from Stadler’s statement as follows:
“Technical stability plays a particularly important role. Priority is given to security and resistance to external influence through conservative technological development … With fees amounting to just a few pennies, Bitcoin can bring significant benefits in terms of costs in the field of international trade, where traditional payment transactions can incur very high transaction fees.”

Additionally, Stadler refers to the risk profile of cryptocurrencies for utility and security tokens significantly.

In a nutshell, what he realizes and focuses while referring to Bitcoin (BTC) and related transactions on technology, economy, and sociology front that there has to be an innovative business model in place. Because the new buzzwords like smart contracts and tokenization of real-world digital assets are still in nascent stage and will impact the entire corporate and business world going forward. He also advises to ward off the recent ICOs having said that most of them are scammers and projects are not feasible enough to execute.

Let us not forget that the Blockchain industry is definitely an exuberant one that entices everyone. How one can use it that always matters!!

Doris Faulk

Doris Faulk is a experienced financial expert and recently joined CryptoInvoke with main aim to provide up-to-date market information regarding world's leading cryptocurrencies. His news stories help readers to get comprehensive knowledge of what's happening in crypto markets. He is important asset to our team due to his qualities like professionalism and strong analytical skills.

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