Value is a subjective concept—one person, community, or society may place monetary value on an object that another throws away. For example, the first cryptocurrency, Bitcoin, was valued in thousandths of a cent shortly after its launch in 2009. Its popularity grew further, and by 2021, it had reached $69,000 per Bitcoin. Its rise in value demonstrates that how a society perceives an asset is critical in determining whether it has value.
Ethereum, the blockchain ecosystem that underpins the cryptocurrency ether (ETH), serves as the foundation for non-fungible tokens, decentralised finance applications, and other technological advancements in digital asset ownership. Although ETH does not have the same monetary value as Bitcoin, its utility and potential make it far more valuable to a company developing financial products and services based on the Ethereum blockchain and smart contracts.
Investors and businesses have begun to hold cryptocurrencies for use in finance, investment, venture capital, and a variety of other areas. Galaxy Digital Holdings, for example, is a financial services and investment firm that manages nearly $2.9 billion in crypto (digital) assets.