This is a short post regarding a change in terminology/rebranding from cryptocurrency to digital assets.
Tony from Thinking Crypto on YouTube inspired this post and he goes into more details in his video (below).
In 2017 the buzz word was “blockchain”. You heard people on TV, and in news articles touting “blockchain not bitcoin” – I’m not exaggerating.
Publicly traded stocks would add the word “blockchain” to their name and spike in price
Blockchain was the buzzword. People associated Bitcoin with fraud, criminals, money laundering – inappropriately as we know. Eventually, people started talking “Bitcoin” again and thoughout 2018 there was certainly less stigma around Bitcoin. I hear/read a lot less about blockchain nowadays.
However, with the soon incoming institutional investors, there appears to be a more wholesome change in language away from cryptocurrency and towards “digital assets”.
Cryptocurrency vs. Digital Asset
The word cryptocurrency encompasses not only Bitcoin, Ethereum, XRP, Litecoin, Monero, ZCash, BNB, EOS, TRX, NEO, stablecoins, etc, but also all of the other, failed, mostly useless cryptocurrencies that spawned during the ICO frenzy of 2017 and early 2018.
Conversely, Digital Asset encompasses cryptocurrency, but also includes any tokenized asset that is not considered a true currency, such as tokenized real estate, or security tokens.
The term Digital Asset is being utilized by institutional players such as Bakkt, ErisX, Fidelity (Fidelity Digital Assets), Bitstamp, Xapo, Templum as well as Galaxy Digital (merchant bank dedicated to digital assets and blockchain tech industry), Greyscale, and more.
As Tony states,
Cryptocurrency is one facet of the new asset class that is being built under digital assets. Digital assets is more of an overarching name or theme and then crypto is specific, and then you have maybe utility tokens, tokenized securities, digital stocks, asset-backed tokens (similar to tokenized securities).Tony, Institutional Money Rebranding Crypto as Digital Assets – Bakkt, Fidelity & ErisX – Token Economy, YouTube Channel: Thinking Crypto
It seems as though the industry giants are rebranding and recategorizing the tech behind cryptocurrency as digital assets.
This seems very appropriate and logical to me. First, it makes more sense. Second, it is more palatable to large institutional investors to invest large sums of fiat. And whatever satisfies their interest to expand the cryptocurrency industry I am ok with.
For a re-fresher on cryptocurrency topics visit this page.
You can check out the whole video from Tony below! Great channel, highly recommend that you watch, like, and subscribe.
Hope you enjoyed this short post!
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