Definition ∞ Real Economic Value, in the context of digital assets, refers to the intrinsic worth derived from an asset’s utility, demand, and scarcity, independent of speculative price movements. This value is tied to its functional applications within a decentralized ecosystem, such as facilitating transactions, providing access to services, or representing ownership of tangible or intangible goods. It contrasts with purely speculative value, which is based on anticipated future price increases. This represents a fundamental assessment of an asset’s utility.
Context ∞ The discussion surrounding real economic value is central to the long-term viability and mainstream acceptance of digital assets. Critics often question the underlying value of cryptocurrencies beyond speculation, prompting projects to focus on building applications that provide clear, tangible utility. Establishing and demonstrating real economic value is a key objective for developers and a crucial factor for institutional adoption and regulatory recognition, moving the industry beyond price volatility alone.
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