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.