The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The world is ever-changing and has made the transition to everything digital. With the rise of social media and online banking, among many other technological innovations, society has been changed forever. Among these many innovations, digital assets have been all the talk. In case you’re out of the loop, digital assets refer, well, to the ownership of everything digital. Think: files, artworks, music, financial assets, and so much more!
This led to the meteoric rise of cryptocurrencies and other tokens, which can revolutionize economies. In this article, we’ll talk about the transformative benefits of these assets in modern economies.
Digital assets have been gaining steam and for good reason. One begins to wonder: what makes them so special? Let’s get to know the benefits that these digital assets provide in the context of modern economies:
If you haven’t dipped your toes into the world of cryptocurrency, you might not be familiar with the term stablecoin. As implied by its name, a stablecoin is typically considered stable because it’s pegged to stable assets like fiat currency and gold. For instance, there are many stablecoins pegged to the U.S. Dollar, like Tether and USDC.
Without the development of stablecoins, many investors and crypto owners are left unprotected in the highly volatile crypto environment, an environment where the value of your coins can plummet to zero overnight. Because of their stability, stablecoins can be used in day-to-day transactions, whether it’s for buying a cup of coffee or purchasing that new gadget you’ve been eyeing.
Note that stablecoins are different from the funds that you store in an online bank. Stablecoins are a form of cryptocurrency, and you’ll likely only be able to use them in stores that accept crypto for transactions. Stablecoins provide security and accessibility like never before, which makes them an ideal option for integration into financial systems.
Millions of people still do not have their own bank accounts, and that’s primarily due to stringent requirements and regulatory hurdles. This holds true, especially for populations in poorer regions of the world. And there are many disadvantages to not having your own bank account. One of them is the difficulty of storing cash. While having cash on hand can be convenient for most transactions, it’s not a good idea to keep all your cash out in the open. Without a proper online counting system, you won’t always have a clear picture of your assets’ values.
Digital assets change that. Just about anyone can own a crypto wallet, and a lot of them won’t require you to take multiple steps for you to store your assets digitally. This is why digital assets are so inclusive – no one gets left behind. Everyone gets to enjoy the benefits of security.
Speaking of security, don’t just download any digital wallet to store your assets. Be sure that your wallet is reputable and safe. That way, you get to fully enjoy the benefits that these assets provide.
When transferring money overseas, there are often hefty fees associated with these transactions. With the power of blockchain and digital assets, you’re somehow bypassing these fees as transferring digital assets is often cheap or even free. This makes transferring digital assets, such as cryptocurrencies, a great option, especially for those who want to send money to their loved ones abroad.
You might be familiar with the NFT craze – the JPEG that everyone loves to make fun of. Also known as non-fungible tokens, NFTs are digital assets or collectibles that come in different forms – art, music, and even tickets! You might even hear talks of the metaverse, a digital environment where you can own digital real estate – these are tokenized as well. Years ago, this would’ve sounded like a far-fetched idea, but it’s the reality we live in today.
Because these assets are represented on the blockchain, selling or transferring them can be done quickly. This makes markets more accessible and opens doors for new investment opportunities.
Lastly, blockchains are known to have high levels of security and transparency – which exactly makes digital assets so secure. Everything is also immutable and transparent in the blockchain. Once it’s recorded, it can’t be manipulated. This ensures that data sourced from the blockchain is authentic, adding a layer of trust and accountability to our financial systems.
Digital assets have taken the world by storm, and quite obviously so when you hear everyone speaking of cryptocurrencies and NFTs. While they’re still in their nascent stages, these assets have provided plenty of benefits to our economies. From the development of stablecoins to the cost-effectiveness of transferring crypto, its positive impact on our financial systems cannot be understated. The best part is that there’s still a lot in store for digital assets, so keep an eye out for them.