Writer: Nuttawut Kulkaew

Editor: Wittaya Wonglor

Technology changes fast and all information, even assets, can now be digitized, opening up a new investment channel with benefits such as:

1. Low starting costs because digital token assets are priced per unit, letting the public have easier access to investments in various assets.

2. Access to a variety of investment forms that match your interests and aptitudes because assets in a variety of industries such as real estate, products and services, factories, agriculture are transformed into digital tokens.

3. Open investment platforms that everyone can access conveniently and quickly, making digital asset transactions easier. Transactions are be carried out 24 hours a day without waiting for execution times.

Investment in digital assets has risen by 87% with a total market value of 1 trillion dollars in 2021 or about 36.75 trillion baht, reflecting the changing behavior, needs, and perspectives of financial service users, accepting blockchain technology to make financial transactions easily and faster.

Thailand is open to the use of digital assets to a certain extent. The Royal Decree on the Business of Digital Assets was issued in 2018 to ensure that digital asset business operations protect the public as well as taking care of the stability of the financial system. But every investment involves risks. Investors in digital assets should be aware of both the positive and negative consequences, such as very high volatility. The value of digital assets does not depend on the fundamentals used in calculating the value of different currencies or the credibility of the coin maker. A service provider platform in Thailand announced a suspension of withdrawals and a temporary cessation of transactions causing investors to panic sell digital assets, resulting in various coin values fall quickly.

The future of digital assets remains highly challenging. Digital asset investors should be aware of these risk factors. Understanding the origins of the risk factors will help in managing the risks directly. It is something that requires a plan, incorporating future risks to prevent loss and investment impact.

Implications for the future:

- The future of investment has both positive and negative possibilities with many factors involved. Investors who invest in this system must focus on knowledge and understanding, including managing risks appropriate to their status. Do not fall victim to the greed that has caused various financial crises in the past. Price manipulation, for example, can lead to losses or eventual systemic problems.

- The credibility of the asset provider is another important consideration when choosing an investment. Information on the digital asset system should be explained in detail and accessible to everyone.

- The government should provide legal protection for digital assets, supporting new innovations, creating standards and opportunities for a wider and more stable digital economy.

Reference:

https://bitcoinke.io/2021/01/grayscale-2020-report/

https://www.coindesk.com/.../total-cryptocurrency-market.../

https://statisticsanddata.org/.../top-10-cryptocurrency.../

https://hbr.org/.../what-skeptics-get-wrong-about-cryptos...

https://www.sec.or.th/.../Digita.../digitalasset_summary.pdf

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