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The difference between cryptocurrency and digital assets, and why should holders care?




Cryptocurrencies and Digital Assets are two different things, but it is not surprising that they frequently get confused with one another because they are both traded with on the same platforms and they can be exchanged for one another. But, there are quite a few differences between the two types of financial tools, so lets take a closer look at this digital age concepts and see why it is important to know the difference.Cryptocurrency vs Digital AssetCryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.A Digital Asset is any text or media that is formatted into a binary source and includes the right to use it. Digital files that do not include this right are not considered digital assets. A digital asset can range anywhere from motion pictures to documents and any other type of data one can think of.Blockchain vs Public LedgerEvery cryptocurrency is issued on a blockchain, whereas digital assets can be issued on a distributed ledger or any other type of medium. Moreover, cryptocurrencies allow the owner to be in full control at all times, thanks to the public and private key system associated with cryptocurrency wallets. Digital assets are often somewhat protected by overarching entities, reducing the control the owner has over them to some degree.Supply Limit vs Supply InfinityMost cryptocurrencies are known for their decentralized aspect. This is particularly true for Bitcoin and all other prominent alternative cryptocurrencies in existence today. They also use different timestamping services, which are not present where digital assets are concerned. Moreover, most cryptocurrencies have a supply limit, whereas digital assets could — in theory — be created indefinitely if needed. It is evident these two types of stored value are very different from one another, and should always be treated as such.Intrinsic valueWhile cryptocurrencies are often considered to have no real value behind them, digital assets have often real, intrinsic value. The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Additionally, intrinsic value is primarily used in options pricing to indicate the amount an option is in the money. An advantage of some digital assets is that they can be exchanged for something with intrinsic value, for example for gold or something else that can be evaluated — If the intrinsic value is the actual value of the company, that is not possible.Where does Xaurum stand in this story and why should holders care?Xaurum is a digital asset with intrinsic value. It is the first asset with continuously growing gold base and its blockchain technology guarantees the highest level of security backed by transaction transparency on the public ledger. The amount of gold that is being distributed is owned by the Xaurum Commonwealth. Its growing gold base makes Xaurum a secure, scalable, long-term opportunity and it is exchangeable for 999,9 gold anytime, anywhere. And that is what differentiate Xaurum from other digital assets. Financial markets are known to be volitale, the changes in financial/crypto world can happen over night and in all of unexpected situations, that any participant in this financial scheme (exchanges, banks…) might find themselves in, Xaurums gold represents a legitimate exit strategy from the market or just the opportunity for individual to get a hold of this precious yellow metal. No matter what happens in the market, what kind of factors are involved, xaurum holders own real, intrinsic value — gold.




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The difference between cryptocurrency and digital assets, and why should holders care?

Summary:


The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. It is the first asset with continuously growing gold base and its blockchain technology guarantees the highest level of security backed by transaction transparency on the public ledger. No matter what happens in the market, what kind of factors are involved, xaurum holders own real, intrinsic value — gold.



Additional Research Links