web3/claims/what-type-of-asset.md

What type of assets are crypto token?

Crypto assets are securities contracts for speculative investments.

See the assets comparison chart for an overview of how crypto asset compare to traditional investments and currencies.

Crypto assets are not currency because they cannot fulfil the definition of money.

Crypto assets are not commodities because they have no intrinsic value needed to fulfil any productive economic activity or human need. A hypothetical definition of their use value depends on a circular logic.

Crypto assets may also be a form of art under the fuzzy definition of "artistic intent".

Comparables

Crypto assets have no direct correspondence in traditional markets, but have several pathological equivalences of traditional assets with absurd premises or terms.

• Tulip bubble
• Zero-coupon perpetual bond
• Unspendable currency
• Equity with no cash flows or dividends
• Commodity with no use value
• Exchange traded pyramid-scheme
• Derivative contract with no underlying
• Libertarian performance art
• Self-organizing Ponzi scheme
• Indulgences

References

• [@diehl_intellectual_2021]
• [@taleb_bitcoin_2021]
• [@iansiti_truth_2017]
• [@silverman_crypto_2021]
• [@krugman_bitcoin_2018]
• [@weisenthal_bitcoin_nodate]
• [@fletcher_currency_2013]