Hard Assets
Hard assets are tangible items that have a value and can be used as collateral in financial transactions. This includes physical commodities such as gold, silver, oil, art or real estate. Hard assets are typically held in portfolios by investors who seek to diversify their investments and protect against market volatility. They also offer the potential for capital appreciation over time due to supply-demand imbalances and inflationary pressures.
Cryptocurrencies are virtual currencies that exist on distributed ledger technology (DLT) networks such as blockchain. Cryptocurrencies are not considered hard assets because they do not possess intrinsic value like precious metals or real estate; instead they rely on faith from users of their underlying DLT platforms for their continued use and stability. As with other financial instruments, cryptocurrencies can appreciate or depreciate in value depending on factors such market sentiment, technological advancements and regulations governing its usage within different jurisdictions. As such, it is important for investors to understand the risks associated with investing in cryptocurrencies before making any decisions about purchasing them as part of a portfolio diversification strategy
