Long-Term Capital Appreciation

Definition ∞ Long-term capital appreciation describes the increase in the value of an asset over an extended period. This investment objective prioritizes growth in asset value over several years, rather than short-term gains or income generation. Investors typically hold assets for a significant duration, expecting their market price to rise due to underlying economic growth, technological advancements, or increased demand. It is a common goal for strategic investments in growth-oriented assets.
Context ∞ For many participants in the digital asset market, long-term capital appreciation is a primary investment thesis, particularly for foundational cryptocurrencies like Bitcoin and Ether. Despite short-term volatility, proponents view digital assets as a new asset class with substantial growth potential over decades. Discussions often center on the macroeconomic factors, technological progress, and adoption rates that could drive sustained value increases in the crypto sector.