Non-Yielding Assets

Definition ∞ Non-yielding assets are investments that do not generate regular income or returns for their holders. These assets typically rely solely on price appreciation for investor profit, rather than producing dividends, interest, or staking rewards. Examples in traditional finance include gold or certain collectible items. In the digital asset space, many cryptocurrencies, particularly those held without being staked or lent, function as non-yielding assets. Their value proposition rests on scarcity, network utility, or speculative growth.
Context ∞ The discussion around non-yielding assets in crypto often centers on the opportunity cost compared to yield-bearing alternatives within decentralized finance DeFi. News articles frequently compare the performance of assets like Bitcoin, which traditionally offers no native yield, against stablecoins or other tokens that can be staked or lent for passive income. This comparison is particularly relevant during periods of high inflation or rising interest rates, as investors seek to protect purchasing power.