A High-Level Taxonomy of Crypto-assets

Abstract

The creation of Bitcoin and subsequent proliferation of crypto-assets have established a financial environment where new digital networks for the exchange of value can be rapidly deployed at relatively low cost. This creates potential opportunities for the establishment of new asset classes, improvements to the liquidity and transparency of existing markets, and the formation of new communities. However, these low barriers to entry mean that the universe of crypto-assets is in constant flux, making it extraordinarily difficult to keep track of the assets within it or to understand how such assets should be valued. No universally accepted system exists for the categorization of these assets, with many different taxonomies in use. In this chapter, we consider several of the dimensions for the categorization of crypto-assets and present a framework for understanding key differences between crypto-assets based on their intended usage and then examine each high-level crypto-asset category.