Bitcoin made it possible for the first time to transfer something digitally from one person to another, without a central party keeping the books or records. With crypto and digital assets, we are at the dawn of a new world where decentralized organization and digital ownership transfer are possible. At Amdax, you invest in this decentralized future, with well-known products and services.
With the rise of the internet, digital possession has become an increasingly important part of our daily lives. Our CDs and DVDs have been replaced by streaming services, and we use Google Maps instead of the road map. Other possessions such as ID details, medical records, diplomas, concert tickets, and our money have also been digitized.
In the physical world, do you give possession to another person? Then the other person is the new owner and you no longer own it yourself. In the digital world, this works slightly differently. Underlying this is the double-spend problem. When you share something online, for example, a photo, the recipient gets a copy. Duplication is fine with a photo, but not with digital assets. This was solved by a central administration, run by central parties such as notaries, government agencies, financial institutions, and tech companies.
Centralization comes with risks. What if the counterparty ceases to exist or goes bankrupt? Then we could lose our digital assets just like that. Moreover, central organizations have the power to change the rules of the game in the interim, just as central banks can increase the money supply. Because of their position of power, they can determine who can join the system and who cannot. In the Netherlands, for instance, we have seen used car dealers being refused as customers by banks.
The essence of Bitcoin's innovation is that for the first time, it is possible to transfer something digitally from one person to another, without a central party keeping the books or records.
Following digital money, new initiatives are emerging that enable the decentralized organization and digital ownership transfer. Built on decentralized protocols such as Ethereum and other blockchains, crypto projects enable DeFi (decentralized financial services), where your counterparty is a smart contract rather than a company. Thanks to NFTs, all kinds of digital assets get an existence independent of a government or company. Web3 enables you to regain control of your online assets yourself, from avatar and profile to identity and content.
It took bitcoin six months to get 1,000 users, and five years to find a million users. Today, nearly fourteen years after its founding, it has more than 300 million users, equivalent to four percent of the world's population. At its current growth rate, there will be a billion users in the next three years, which equates to twelve percent of the world.
After the invention of bitcoin in 2009 and the launch of Ethereum in 2015, a explosion of innovation occurred. Parallel to the professionalization of the market, we see a new investment category emerging: digital assets. In addition to bitcoin, there are five main domains:
We are convinced that digital assets, such as bitcoin and other cryptocurrencies, have the potential to create an open, transparent financial infrastructure. Innovations in this ecosystem have already produced many new opportunities. We believe that the ecosystem of digital assets offers a opportunity for innovative investors looking for new investment opportunities and to diversify their portfolio. The crypto market has become professionalized in recent years. Many risks have been eliminated at the technical and legal level, and central parties are paying more attention to compliance. Market risk has also declined sharply; liquidity is now sufficient to enter and exit with hundreds of millions of dollars. However, investing in crypto assets is still not without risk. It requires technical knowledge, understanding of the market, and expertise to evaluate the quality of different assets.
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With Amdax Private we offer premium services for secure storage, staking and trading of digital assets. We tailor the set-up to your personal preferences.