Digital Asset Valuation and Cyber Risk Measurement

Chapter 1

Digital Assets as Economic Goods

Abstract

This chapter first looks at the origins and philosophical concept of value, the different schools of thoughts from the subjective and objective views of value, the differences between intrinsic and extrinsic value, the definition of traditional assets, the definition of economic goods, and current asset valuation methods. Then, five unique characteristics of digital assets distinct from traditional assets are outlined. For example, the most fundamental assumptions of the discipline of economics are that: (1) the amount of resources available for a society is limited; and (2) the market exists as a measure of substitutability of those limited resources. To find optimal distribution of resources ...