Definition ∞ This refers to the objective of allocating capital with the expectation of generating a return, preserving wealth, or achieving specific financial goals over time. It involves deploying funds into various asset classes, such as stocks, bonds, real estate, or digital assets, based on a risk-return assessment. These purposes drive market activity and financial product development.
Context ∞ The suitability of digital assets for investment purposes is a frequently debated topic among financial professionals and regulators. While some view cryptocurrencies as speculative, others recognize their potential for diversification and long-term value appreciation, prompting discussions on appropriate risk disclosures and investor protections.
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