Digital assets continue to provoke thought and intrigue, but there is still uncertainty as to how we should think about them in reality. What factors are attracting investors and how are communications adapting to this form of investment?

A digital asset can be anything that is both uniquely identifiable to realise value and stored digitally.

In today’s market, digital assets are attractive primarily because of the returns. Over the last 10 years, there are very few assets that have performed better than digital assets class despite its infancy. There are a lot of macro factors at play that are pushing people towards investing in them. For example, inflation is increasing, making it less profitable to hold large cash balances. Digital assets can offer attractive savings rates such as 8% on a USD stablecoin, compared to less than 1% at a local bank. Institutional investors can also use digital assets to diversify their portfolios. [1]

As these trends continue to gain traction, more mainstream players are taking notice, causing an acceleration in building out the infrastructure to support the digital asset class and establish an ecosystem.

An example of this is the development of tools to improve stakeholder communications for companies who are offering this asset class. Usability and security has improved through technology and platforms such as Bitmessage, a decentralised and encrypted P2P communications protocol, offering a safe messaging environment that maintains the security of personalised data.

Investing in digital assets isn’t about just buying Bitcoin. While Bitcoin usually makes up the majority of a digital asset portfolio, there are additional ways to get exposure. Alternative coins such as Ethereum and Solana have seen growth due to rising interest in key themes such as non-fungible tokens and the Metaverse [2]. Investors who are looking for some exposure in these areas are considering investing in index-style products that track the market through a basket of coins [3], as opposed to buying individual assets.

That said, there are significant areas of uncertainty about the future of digital assets. Price volatility, the ongoing development of valuation frameworks and nascent regulatory classifications are a few of the challenges. has an important role to in helping organisations deliver clear and honest messaging around this promising asset class.

We hope you found this article insightful. If you need help with your communications, please contact us.

[1] The uncorrelated nature of digital assets to other assets makes it ideal for financial advisors looking to strike a balance between achieving the goals of their clients and taking risk.

[2] Non-fungible tokens are similar to digital assets, but are not mutually changeable. The metaverse is a concept that has the potential to use digital assets as a means of payment.

[3] A curated selection of digital assets.

Why are individuals and institutions allocating digital assets?