- Cryptocurrencies have emerged as a potent force as digital transformation takes place.
- They bring a new perspective, where logic replaces trust in valuing money.
- Their abstract nature allows a generalization of their applications beyond payments to new areas.
- Bitcoin, as standard-bearer, has not seen significant adoption as money given its unpredictability.
- But the potential of cryptos in driving innovation and as digital money underpin their value.
Cryptocurrencies led by Bitcoin have brought a fresh perspective to the concept of money—showing a promising paradigm without trust and based on logic and free markets principles. While they are still not perfectly suited for use as money today, they have brought about decentralized digital payments, and holds the potential to deliver new applications given their abstract nature. Crypto adoption has increased but is still far from a critical mass, and its value as a digital asset could remain highly volatile given uncertain prospects of adoption. The crypto story is one that is still being written and is one that is worth following.
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Virtual currencies are highly speculative digital "virtual commodities", and are not currencies. It is not a financial product approved by the Taiwan Financial Supervisory Commission, and the safeguards of the existing investor protection regime does not apply. The prices of virtual currencies may fluctuate greatly, and the investment risk is high. Before engaging in such transactions, the investor should carefully assess the risks, and seek its own independent advice.