Bitcoin, Ethereum, ZCash and others are most often called “cryptocurrencies.”
We prefer to call them cryptoassets because we think “cryptocurrencies” is misleading and limiting. Take, for example, the world wide web, or Internet. It was first called the “Information Superhighway” and that made everyone think it was only about sharing information.
Fast forward to today and you can pull up the “web” on your phone to hail an Uber to transport you across town quickly and inexpensively. Clearly it wasn’t just information that was transported—you were transported.
The early “Information Superhighway” concept clearly didn’t see Uber coming, let alone AirBNB, Amazon, Netflix, Facebook or even Google.
Today, the Internet is still evolving and cryptoassets are part of it.
The thing to keep in mind that gives you an edge over other investors is that tomorrow cryptoassets could be used for much more than just payments. In fact right now, the #1 use of Bitcoin is as a store of value, or as “digital gold,” outside the realm of currency. People are using Bitcoin as a hedge against inflation, hyperinflation, currency crises, geopolitical turmoil and more.
Tomorrow people will use Bitcoin and other cryptoassets as an alternative to institutional banking, brokerage, insurance and more.
Ethereum’s platform will offer competing services to, ironically, Uber, Amazon, Google, Facebook, Netflix and more. The difference is a “dApp”, short for “decentralized app,” accrues the value of the network to its token holders instead of a central corporation.
The point is cryptoassets are evolving. There is great potential for mass adoption of a global, decentralized digital payments system that we all use… and there is also great potential for crypto-commodities, crypto-securities, dApps and all sorts of things being built by crypto developers.
The smartest investors see this ongoing evolution and are investing in tomorrow’s technology today.