For example, crypto-assets like Bitcoin have an energy consumption comparable to that of a medium-sized country like Spain. [21] Despite these technological differences, crypto-assets have features in common with the traditional financial system: trading on market places and exchanges, provision of payments services, lending, or use of collateral in financial transactions. Two types of crypto-assets are relevant: The first are “native” tokens.
These are not backed by any real or financial assets and are hence labelled “unbacked” crypto-assets. This distinguishes them from traditional financial instruments or currencies. Unbacked crypto-assets have no fundamental value and are not backed by any cash flows, and their price is driven entirely by sentiment. [22] The two best-known native tokens are Bitcoin and Ether, the native token of the Ethereum blockchain.