In latest times, there are wonderful euphoria for investing in the cryptocurrencies. Before this it is important to understand that if cryptocurrency investment means currency investment or it is an asset. For the instrument to simply classify as the currency, it should also have important features.
Key features of Cryptocurrency
The first one, it is promissory note when the issuer promises the bearer and holder the value.
Second, it is also backed through sovereign nation.
Third, there is not any question of default for executing issuer promise.
Fourth, the printing of the currency in physical and digital form is based on tangible asset, such as gold or some goods.
Is crypto considered as an asset?
The asset is having some tangible value. Also, if their instant utility is intangible, the asset must also have the tangible benefits. Also, cryptocurrencies are recently promote such as — bitcoin, ethereum and litecoin as these are nothing but the gaming points. When there is any discussion about cryptocurrency takes place, the promoters speak abuot blockchain technology.
The Blockchain technology is a technique for accounting transactions and it has nothing to do with the cryptocurrencies. Though, apart from the digital exchange cryptocurrency that maintained in the format of blockchain.
In different words, the points that earn through the gaming application gets store along with transferred through the blockchain technology. On the other hand, absurd it might seem. Also, points earn in the ludo game may also present as the cryptocurrency when they get store and sold through blockchain technology. Hence, cryptocurrencies also have absolutely no such value and it may regarded as asset. Here mining as well as solving root of the equation are mainly euphemisms for the few of the gaming points. Also, cryptocurrencies are recently promote such as — bitcoin, ethereum and litecoin as these are nothing but the gaming points.
