Whether cryptocurrency or NFT, a digital asset operates on the blockchain system. A blockchain is simply a ‘book of transactions.’ The great advantage of this ‘trade ledger’ is that it enables ‘credit transactions.’ The most important aspect of a credit transaction is a ‘book’ that proves whether the payment has not yet been made or has been paid in full. Blockchain is a system that makes this ‘ledger’ unchangeable and immune to theft. In other words, the nature and properties of digital assets today are more similar to ‘bonds.’ When someone steals the ‘ledger’ in a ‘credit transaction,’ everything disappears unless a copy exists. If the recorded transactions in the ledger are a means of payment, it is called ‘currency,’ and if it’s ‘art’ or ‘content,’ it’s called ‘NFT.’ They differ only in what they represent, despite sharing similar properties. - Joseph’s “just my thoughts”
Many people in our society invest in bonds . Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost . This is the transaction value of bonds . When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why C...