9 min readAug 29, 2021


I’m sure most at times questions about the crypto world, what it means, why is it talked about so much, arise in the minds of many individuals. If the said topic known as “cryptocurrency”is as important as said to be so much more that is referred to as an “ASSET".

all these questions and more will be answered as we continue.

I would like to introduce the topic by giving a brief description on what an asset is and its relation to crypto currency.

Assets are of two types these are; tangible assets, intangible assets i won’t want to bore you by going into what those mean i feel they are very self explanatory. Basically, an “asset” is said to be a resource with economic value that an individual, corporation,or country owns with expectations that it generates cash flow or better put its economic value grows.

the key things i would want you to note from that definition of an asset are;

1.individual, corporation, country:which refers to the holders of the asset in question

2.economic value
3.generation of future cash flow.
These 3 points put together are saying that assets are substances, materials be it tangible or intangible capable of having a growth in its economic value when in ownership by one of these three (individual, corporation, country).

I would now like to define the term “CRYPTO CURRENCY”

In simple words,a cryptocurrency is a form of digitalised currency,in which its economic value rises or falls as time goes by as posed to that of physical currency(naira,dollar,pounds)which when kept stays the same way and looses its value.for example if you are to have 10million pounds and keep it for the next ten years it remains the same 10 million pounds for the next 10 years which is not the case in cryptocurrency.

As you can see from the definition of cryptocurrency it has the same traits as any asset except its non physical nature which is why it is regarded as an “intangible asset".

What is responsible for the rise and fall of its economic value? you might ask
just like any other asset,the rise and fall in cryptocurrency is as a result of the demand and supply on that particular cryptocurrency. When the demand on a particular cryptocurrency increases and brings about a restricted supply it. causes and increase in its economic value where as when the supply outweighs the demand the reverse is the case.


As of April 2021, there are over 10,000 different types of cryptocurrency.

The different types of crypto generally fall into one of two categories:
• Coins, which can include Bitcoin and altcoins (non-Bitcoin cryptocurrencies)
• Tokens

Below, we’ll get into the basics of crypto tokens vs coins.

Crypto Tokens vs. Coins
Encrypted coins and tokens can fall under the heading of crypto. And, generally, they can be listed into two sorts of cryptocurrency: alternative cryptocurrency coins (Altcoins) or tokens.

Alternative Cryptocurrency Coins (Altcoins)
Altcoins usually refer to any coins that are not Bitcoins. Bitcoin is a popular digital currency that’s produced by computational solutions to complicated math problems. It works separately from a central bank or state entity (i.e., government-backed Treasury).

Some altcoins include:

• Peercoin
• Litecoin
• Dogecoin
• Auroracoin
• Namecoin

In fact, the name “altcoin” actually means “alternative to Bitcoin.” Namecoin is considered the very first altcoin, created in 2011.

Like Bitcoin, most cryptocurrencies listed here have a limited supply of coins—to keep the balance in check and to reinforce its perceived value. There is a fixed number of Bitcoins that can exist—21 million, as decided by the creator/s of Bitcoin, though some remain to be mined. Once all 21 million are tapped (the number changes when new blocks are mined), that’s it. The only way to bring in more is for Bitcoin’s protocol to allow for it.

Though most altcoins are built upon the same basic framework as Bitcoin, many claim to be better versions of Bitcoin.
Each system can differ from the next, as they’re created to serve various purposes and applications, and identified in different ways.

Some coins don’t work with the same open-source protocol that Bitcoin does, however. For example, the following list of cryptocurrencies have created their own separate systems and protocols:

• Ethereum
• Ripple
• Omni
• Nxt
• Waves
• Counterparty

They’re each self-supporting, too.

Unlike altcoins, tokens are created and given out through an Initial Coin Offering, or ICO, very much like a stock offering. They can be represented as:

• Value tokens (Bitcoins)
• Security tokens (to protect your account)
• Utility tokens (designated for specific uses)

They are not so much meant to be used as money as they are used to describe a function. Like American dollars, they represent value but they are not in themselves of value. Tokens are a type of encryption, specifically referring to the long lines of numbers and letters representing the crypto used in a transaction, such as a money transfer or bill payment. In short, tokens cover a number of meanings.

For instance, both Bitcoin and Ether (from Ethereum) are considered crypto tokens.

The Most Common Types of Cryptocurrency
Here’s a list of popular cryptocurrency types and descriptions:

1. Bitcoin
Bitcoin is a type of digital currency; it is “cash for the internet.” More specifically, it’s considered cryptocurrency since cryptography facilitates Bitcoin creation and transactions.

Possibly the “Kleenex” or “Coca Cola” of all crypto, in that its name is the most recognizable and the most closely associated with the cryptocurrency system.

There are currently more than 18.5 million Bitcoin tokens in circulation, against a present capped limit of 21 million.

2. Bitcoin Cash
Introduced in 2017, Bitcoin Cash is one of the most popular types of cryptocurrency on the market. Its main difference with the original Bitcoin is its block size: 8MB. Compare that to the original Bitcoin’s block size of just 1MB. What that means for users—faster processing speeds.

3. Litecoin
Litecoin is increasingly used in the same breath as Bitcoin, and it functions practically the same way. It was created in 2011 by Charlie Lee, a former employee of Google. He designed it to improve on Bitcoin technology, with shorter transaction times, lower fees, more concentrated miners.

4. Ethereum
Unlike Bitcoin, Ethereum focuses not as much on digital currency as it does on decentralized applications (phone apps). You could think of Ethereum as an app store.

The platform is looking to return control of apps to its original creators, and take away that control from middlemen (like Apple, for instance). The only person who can make changes to the app would be the original creator. The token used here is called Ether, which is used as currency by app developers and users.

5. Ripple
Ripple is one type of cryptocurrency on the list, but it’s not Blockchain-based . It’s not meant so much for individual users as it is for larger companies and corporations, moving larger amounts of money (its coinage is known as XRP) across the globe.

It’s more well-known for its digital payment protocol more than for its XRP crypto. That’s because the system allows for transfer of monies in any form, be it dollars or even Bitcoin (or others). It claims to be able to handle 1,500 transactions per second (tps). Compare this with Bitcoin, which can handle 3-6 tps (not including scaling layers). Ethereum can handle 15 tps.


Crypto currency has a very long list of benefits which has been said to slightly negate its disadvantages some of those benefits include:

1.Fraud: Cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
Immediate Settlement: Purchasing real property typically involves a number of third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurrency blockchain is like a “large property rights database,” says Gallippi. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference external facts, or be completed at a future date or time for a fraction of the expense and time required to complete traditional asset transfers.

2.Lower Fees: There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even though there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their own bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge fees. It’s interesting to note that Paypal does not accept or transfer bitcoins.

3.Identity Theft: When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency uses a “push” mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information.

4.Access to Everyone: In fact, here are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to traditional exchange systems. These individuals are primed for the Cryptocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer, and microfinancing service recently announced a bitcoin device, with one in three Kenyans now owning a bitcoin wallet. (Let me repeat that again. 1/3)

5.Decentralization — A global network of computers use blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.

6.Recognition at universal level– Since cryptocurrency is not bound by the exchange rates, interest rates, transactions charges or other charges of any country, therefore it can be used at an international level without experiencing any problems. This, in turn, saves lots of time as well as money on the part of any business which is otherwise spent in transferring money from one country to the other. Cryptocurrency operates at the universal level and hence makes transactions quite easy.
There is no other electronic cash system in which your account isn’t owned by someone else.

Take PayPal, for example: if the company decides for some reason that your account has been misused, it has the power to freeze all of the assets held in the account. This can happen without consulting you (Trust me, this has happened to me). It is then up to you to jump through whatever hoops necessary to get cleared to access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptocurrency address. No one can take that away from you. (Unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

now that all these have been discussed we now have to answer the question


Taking bitcoin as a case study So far, research has show that At the start of May 2011, Bitcoin was trading for approximately $3.50 (that isn't a typo). So, $1,000 would have bought approximately 286 Bitcoins, not counting any transaction costs. As of April 27, 2021, Bitcoin trades for $54,680.

That means 286 Bitcoins would be worth approximately $15.6 million today, assuming you held on to them for the past 10 years.

this clearly proves the theory of cryptocurrency being an asset as its value at a decade ago has far surpassed what it should have been today this is a very clear reminder that if you don’t own cryptocurrency at this point where it is still mildly available and affordable to a very large amount of people in years to come it’ll be close to impossible to lay hold of an asset with a very high future economic value.This answers the question “Why you should own a crypto asset in 2021".




im a writer, bitcoin enthusiast, digital marketer