Area of use

The various different “digital assets” seem similar at first glance, but on closer inspection their purposes differ. There is a lot of speculation involving all of them, but only the digital currencies can really be used at present.

Speculation regarding rising prices put “digital assets” on the front pages at the end of 2017. Both the prices and the reporting have receded since then. Bitcoin is considered a long-term investment, with investors backing greater acceptance of the currency as a means of payment or digital gold. Technical stability plays a particularly important role. Priority is given to security and resistance to external influence through conservative technological development.

regarding rising prices put “digital assets” on the front pages at the end of 2017. Both the prices and the reporting have receded since then. is considered a long-term investment, with investors backing greater acceptance of the currency as a means of payment or digital gold. Technical stability plays a particularly important role. Priority is given to security and resistance to external influence through conservative technological development. Utility and security tokens should be thought of as venture capital, i.e. as an investment in a start-up in its initial phase with fast-paced innovation (“move fast and break things”). In this context the risk of failure is enormously high, even for above-the-board projects. Given the current hype surrounding blockchain technology, the proportion of confidence tricksters is likely to be significant.

and should be thought of as venture capital, i.e. as an investment in a start-up in its initial phase with fast-paced innovation (“move fast and break things”). In this context the risk of failure is enormously high, even for above-the-board projects. Given the current hype surrounding blockchain technology, the proportion of confidence tricksters is likely to be significant. Bitcoin already works very well as a means of payment. Small to very large amounts can be transferred around the world in minutes – something that no other financial network is currently capable of. A retailer can receive payments directly to his or her tablet or EPOS system without the involvement of a service provider. 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. New developments like the Lightning Network are based on Bitcoin, and can transfer small amounts (from hundredths of a cent to several Swiss francs) in milliseconds. This facilitates entirely new forms of micropayments, for example for games or media. This is of course currently offset by the limited distribution and high degree of volatility. The subject therefore still entails some technical enthusiasm and speculation.

Bitcoin is a new currency that is independent of any particular nation state. Following the spread of the internet and the transformation of many sectors as a result of digitisation, there is a good chance that the concept of “money” could be called into question. This is fascinating from a technological, sociological and economic perspective, and offers a number of new opportunities for innovative business models. That is why you should be interested in Bitcoin & co. Don’t fall for the ICO hype and false promises such as “blockchain, but not Bitcoin”. And recognise the disruptive potential of digital assets.

What can you take away?