PwC Switzerland Researcher Concludes Cryptocurrencies Are Useful

The Senior Manager and Data & Analytics Specialist with PwC Switzerland concludes cryptocurrencies are useful. In his post, he defined three different types of digital assets, highlighting the importance of the digital currencies.

1 August, AtoZ MarketsAn executive at PwC Switzerland has stated that among the various types of digital assets, only cryptocurrencies can be used at present. 

PwC Switzerland Researcher Concludes Cryptocurrencies Are Useful

The PwC Switzerland has shared a post yesterday, where the Senior Manager and Data & Analytics Specialist, Roland Stadler has claimed that digital currencies are the most viable for present use in comparison to the various types of digital asset. 

He has stated that digital assets “seem similar at first glance.” However, when the further examination is carried out, they differ. Mr. Stadler made a distinction between “digital assets” and “currencies,” since “only a few” can be regarded currencies in the “literal sense of the word.” He further divides digital assets into three types: currencies like Bitcoin (BTC), utility tokens, and security tokens.

As per Mr. Stadler, currencies like Bitcoin can be both a payment instrument and a payment network. This can be utilized without the necessity of a third party. Utility tokens are “fuel” for using software or a service. Stadler refers to Ethereum-based smart contracts to visualize the differences between ETH and BTC. He notes that they are both used for speculation. However, “they could not be any more different.”

The third class of digital assets is the security tokens. They take the form of digital securities, including shares in companies and rights to future profits from a project. Mr. Stadler states that security tokens can be “tricky” concerning the regulatory matter. These tokens can fall under the same regulatory requirements as a company’s IPO.

Bitcoin is a Long-term investment

After he defined three different types of digital assets, Mr. Stadler proceeded to conclude that currency-like digital assets are the only useful ones as of the moment. According to his research, BTC is seen as a long-term investment, with increasing acceptance as a means of payment:

“Technical stability plays a particularly important role. Priority is given to security and resistance to external influence through conservative technological development … With fees amounting to just a few pennies, Bitcoin can bring significant benefits in terms of costs in the field of international trade, where traditional payment transactions can incur very high transaction fees.”

He also highlights the high risk of failure for utility and security tokens, “even for above-the-board projects,” adding that, “[g]iven the current hype surrounding blockchain technology, the proportion of confidence tricksters is likely to be significant.”

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