A cryptoasset is a type of virtual asset, which has its origin in cryptography.The different crypto assets have a certain market value, which allows us, if we own them, to generate income by selling them or by exchanging them for goods or services.
Since the emergence of cryptocurrencies in 2009, a multitude of crypto assets have emerged that are increasingly known to society. Satoshi Nakamoto (not his real name) is the creator of Bitcoin, the first cryptocurrency. Bitcoin uses blockchain technology to be produced and does not depend on any central bank, making it completely independent.
Crypto assets are totally digital and intangible assets, which can be exchanged for goods, services or money. There are more than 10,000 different crypto assets, which have characteristics that make them different. In the case of cryptocurrencies, there are some that maintain a fixed exchange rate with the dollar to avoid the high volatility that these currencies usually possess.
These types of assets carry some risk due to their "recent" appearance. We say recent because in the world of economics all those products that have not had enough time to know how they work and be regulated are considered novel. In this case, the governments and central banks of the different countries are not very convinced that crypto assets benefit them.
Consequently, not being able to have traceability in relation to the identity of who uses these assets to make payments or purchase goods and services carries certain dangers. Behind crypto assets you can hide illegal activities, such as drug trafficking, slavery, the sale of weapons or the trafficking of exotic animals without authorization.
Types of crypto assets
We can differentiate between two large groups of crypto assets:
- Tokens: They are created with the aim of exchanging them for goods and services. A large part of cryptocurrencies are within the category of tokens. This is the case of BAT, its name comes from the acronym Basic Attention Token.
- Cryptocurrency: A cryptocurrency is a digital currency that does not belong to any central bank. The mining of this type of currency is carried out through the verification of funds transfers and its purpose is to make payments on certain platforms as if it were any other currency.
Differences between cryptoasset and cryptocurrency
The main difference between cryptoasset and cryptocurrency is that cryptoassets are the set of assets that can be generated through cryptography. On the other hand, the cryptocurrency is within crypto assets since it is one of its types.
In conclusion, a cryptoasset is a type of asset created through the verification of the transfer of funds with technology. It is impossible to falsify or duplicate it and it is characterized by being anonymous.
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