I recently attended a Fidelity sponsored webinar in which they presented their new whitepaper on bitcoin. In general, I’m skeptical of digital assets such as bitcoin and other digital currencies, as well as Non-fungible tokens (NFTs) and the like.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Each cryptocurrency uses a unique electronic address for transfer between users’ digital wallets. The user must have a ‘private key’ to be able to move cryptocurrency. If the owner does not provide a fiduciary with a ‘private key,’ the cryptocurrency is inaccessible by anyone upon the owner’s incapacity or death. This is known as a “black hole” wallet because the cryptocurrency becomes inaccessible and essentially worthless. Cryptocurrency is difficult to counterfeit because of this security feature. A
If you want to own Bitcoins or any other cryptocurrency, you need to have a digital wallet. The purpose of a digital wallet is to provide a space to send and receive cryptocurrency and to store private keys. Private keys are known only to the owner and are needed to authorize transfers.
In order to develop a digital asset plan, first we need to define digital assets. In general, digital assets are a form of personal property, including emails, social networking sites, digital collections, and cryptocurrencies.
