Defining Asset Classes in 2021

Types of cryptocurrency coins including Bitcoin, Ripple and Ethereum

On March 12, 2020, the stock market crashed. As the pandemic hit, the world economy entered a state of deep uncertainty and overnight changes. In a frenzy of understanding what still held value and a low volatility level, investors placed increased interest in digital assets. This is how a trend that existed before the pandemic exploded overnight.  

Today, as revolutionary technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Edge Computing are no longer a theory but tools at the reach of the public, digital assets are must-haves in every investor’s portfolio. 

Here at Mawson Infrastructure Group, we have been working in supporting a smooth convergence between the traditional financial asset work and the new, digital assets. Discover the potential of this powerful asset below. 

Digital Assets in 2021: Definition and Classes 

Asset classes are nothing more than a category of investment characterized by similar features and behaviors. The investment types in a certain asset class will usually be subjected to the same regulations and might respond in the same way to external inputs, thus behaving similarly in the marketplace. 

For investors, it is crucial to understand what investments fall within a certain class, as these often have an inverse or negative correlation to other asset classes. After the stock market crash in 2020, the world turned its interest to digital assets. 

The Evolution of Digital Assets: An Overview

Assets classes include equities, cash, real estate, commodities, currencies and many more. From the initial three asset classes, the market has evolved to contemplate new societal needs. So, while cryptocurrencies and other digital assets existed before 2017, they have boomed in the past months. The two main reasons behind the boom are:

• Increased widespread acceptance by companies

• Accessibility to platforms to buy and sell digital assets

• Digital natives – or members of the younger generation of investors – have caused a significant demographic shift. 

 
Bitcoin, a digital asset form, on computer display
 

Types of Digital Assets

A quick Google search will tell you that “digital asset” is not a newly

coined term. In fact, this term was born in the mid-90s, and it was 

mainly used to refer to digital properties, which included images, 

audio, videos, and documents.

 

However, the new blockchain technology brought a whole new 

meaning into the term and triggered what is today defined as the 

“fourth industrial revolution.” Digital assets – as we know them 

today – are still new and emerging, and there is much of how this 

technology will be used in the future that we can’t be sure about.

 

For example, NFTs (non-fungible tokens) have gained sudden global

attention after the multi-million-dollar sale at Christie’s in March 

2021.

Today, digital assets can be defined as electronic data files that can

be stored digitally, owned, transferred, and used as a currency.
The world of digital assets is always in evolution, and changing at a 

faster-than-ever speed. And this is exactly why this type of asset 

represents a trillion-dollar investment opportunity.

 

While the main digital asset type – and perhaps the best-known one 

– is cryptocurrencies, there are plenty of other alternatives worth 

looking into.

 

These include:

• Crypto commodities
• Utility tokens
• Security tokens

 

Learn more about Digital Assets at

Mawson

 

Here at Mawson Infrastructure Group, we are proud to be pioneers 

in the digital asset industry and creators of a digital and ethical 

economy. 

Carrying the important legacy of Sir Douglas Mawson, we strive to 

offset the environmental impact of digital assets and create 

infrastructures that are optimized to welcome the technology of 

tomorrow.  

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