What are Digital Assets? We live in a world that has gone fully digital. Almost everything in our lives now is digital. Almost everything in our lives now is digitized, from photos to videos. With that, a new asset has been created, which is called DS, one of the best trends in the 21st century.
If you’ve heard the term “digital asset” but don’t know what it means, you’ve come to the right place. In this article, we are going to be asking ourselves and answering the question, “What exactly are digital assets?”
What are Digital Assets?
To simply answer your question as simply as possible, they are anything that is digitized. As I mentioned before, we live in a world that is completely digitized today, meaning digital assets are everywhere. The photos we snap on our phones and the videos we will record and the online transactions that will take place are all digital assets.
Definition of Digital Assets
The simplest definition of the term “digital asset” is simply any content that is stored digitally. However, to become fully digital content, that asset must also have an identifiable and discoverable property and must provide value. Digital assets become more popular as the days go by and have more value as long as technology advances regularly.
They have simply become part of our personal and professional lives. Come to think of it, most people cannot go a day without snapping a picture or taking a video and sending it on social media. These are all digital assets, and we are going to be taking a look at the types later in this article.
That being said, they have since transformed from just being only videos, pictures, audio, and data on our phones to something entirely different. Today we associate digital access with a world called cryptocurrency, which was introduced in 2009.
How do Digital Assets Work?
Digital cryptocurrencies such as bitcoin, Ethereum, and others are some of the biggest forms of digital assets ever owned. Crypto brokers allow you to buy or exchange cryptocurrency without having to create your own wallet platform to manage them. In order to manage your digital assets such as cryptocurrency, you definitely need a software or hardware wallet to do so.
A cryptocurrency wallet can either be a digital or software wallet that helps in holding your digital assets. This can also be used to create digital assets as well. Your cryptocurrency wallet is a string of text which is unique to every digital address. Every digital asset can be tracked using a large public database that is known as the blockchain.
Types of Digital Assets
There are various types. The list below includes the ones that you have made use of before and also ones that you have not heard of.
- Audio or music
- Social media accounts
- gaming account
- PowerPoint presentation
- Excel spreadsheet
These are some of the old digital assets that people are still making use of today. Below are the new digital assets that are changing the world today.
New Types of Digital Assets
- Non-fungible tokens
- Tokenized assets
- Security tokens
- Central Bank digital currencies
Above are the new players in town that are some of the best DS that anybody could have.
Benefits from Digital Assets
Digital assets have completely changed our lives forever and they are going to keep changing our lives and determining how we will live forever. People no longer go to the library to search for information; rather, they simply take their handset and turn to various search engines.
So many people cannot do without their smartphones, which are used to create irreplaceable digital assets such as photos and videos of once-in-a-lifetime events. Businesses and even governments also make use of digital stores of data and information that have different values depending on how they are used.
I guess what I am trying to say is that they have made our lives very easy and comfortable. Imagine going to the library or the bookstore to get a book that you can simply buy and read online. Most companies now rely on them to influence buying behavior and build their brand awareness among individuals.
Are Digital Assets worth it?
If you have been following me since the start of this article, your answer to this question is definitely going to be yes. They have made our lives so much easier and better and have also made so many people millionaires and billionaires. But that does not mean that there is no risk involved in keeping or investing.
Anyone thinking about investing should consider whether the risk is worth it for their portfolio. This is why it is very necessary to consider the risk of being involved in or investing before doing so. One of the best ways is to first consider the help of a financial advisor. They have in-depth knowledge of these, and they can properly advise you on the way to go.
Frequently Asked Questions
What are examples of DS?
As we explained in this article, this is information that is stored and used digitally. There are so many that we cannot simply lose them or on this article. However, some of them that we have are documents, audio, video, logos, PowerPoint presentations, spreadsheets, websites, etc.
What are your DS?
They are anything or information that you have that has been stored digitally. Basically, all the information on your computer and your smartphone are DS. As long as they can be assessed and analyzed digitally, they are. Your photos, videos, and even your data all fall into this category.
Is Bitcoin a DS?
Yes, bitcoin is part of a digital asset because it can only exist as part of a non-tangible system. As Bitcoin is basically a string of code, so is any other cryptocurrency that only exists digitally and not physically. All forms of cryptocurrency are DS.