Attention
The term “Digital Property” refers to digital content created or acquired by a person and owned by that person. In German law, however, the term “property” is defined very narrowly in the German Civil Code (Bürgerliches Gesetzbuch, BGB) and refers mainly to material goods. With regard to digital content, the concept of ownership can therefore only be applied to a very limited extent.
The concept of “digital assets” is an extension of the concept of ownership and includes intangible assets such as digital content in addition to tangible assets. In Germany, however, this term is also controversial and there are no clear legal regulations on how to deal with digital assets.
Overall, the topic of “digital property” and “digital assets” is very controversial from a legal point of view in Germany, and the German Civil Code (BGB) offers only a very limited possibility for applying the concept of ownership to digital content.
I therefore use the terms in this blogpost rather in the editorial manner, without wanting to – or even being able to – make legally profound statements. Most of the time, the lawyer has to try to solve case questions in the area of “digital assets”, “digital investments” or “digital assets” with other legal bases. However, there are often serious gaps here in particular.
What is digital property?
Digital property is anything created by man and in a digital form. This can be, for example, a photo, a music file or a video. Sums of money can be earned with the help of digital property. By using licensing procedures, companies can acquire the right to use certain content. In this way, they can improve their products and open up new markets. As I said, the term “digital property” is still very unlegalistic, because the legal concept of property in the German Civil Code is still linked to real-world objects that simply cannot exist digitally.
How can you profit by owning digital assets?
Digital assets can be used in a variety of ways to generate profits. Some of the most common options are:
1) By selling digital assets: Selling digital assets is one of the easiest ways to make profits. Many people own digital currencies or other digital assets that they no longer need or simply don’t want. In this case, you can sell them and get cash immediately.
2) By trading digital assets: Trading digital assets is another way to make profits. Here, you exchange your digital assets for other digital assets, either speculating on the price trend or trying to find undervalued assets and thus make profits.
3) By using digital assets: Digital assets can also be used to make profits. Many companies now accept digital currencies as a means of payment, and more and more private individuals are also willing to use their digital assets to purchase goods and services. For example, you can often exchange your cryptocurrency for a service or good and profit immediately.
Who has access to digital assets?
Progressive digitization has made it easier for many people to access digital assets. With the introduction of digital currencies, such as Bitcoin and Ethereum, it is now possible to “invest” in cryptocurrencies without the need for a financial institution. Credit cards and mobile apps have also enabled many people to invest in the digital space. Furthermore, however, you need to take into account that trading digital assets is not without risk. There are some factors you should consider when “investing” in digital assets. For example, you should familiarize yourself with the different blockchains to minimize the risk of cyber-attacks and other security threats. Also, before buying a digital asset, read the market analysis and share with other investors to get a better understanding. It is also important to note that investors in digital space need to have a higher risk tolerance than traditional “investing” in stocks or bonds due to the high degree of volatility. Therefore, it is advisable that you diversify your portfolios accordingly and only invest in digital assets whose value you understand and whose risks you know. Only then can you achieve profitable success and benefit from digital assets in the long term
What are the types of digital property?
Most people think of cryptocurrencies like Bitcoin or Ethereum when they think of digital property. But this is not the only way to own digital assets. There are also digital goods that do not serve payment transactions but fulfill other functions. One example of digital goods is in-game purchases. These can be made in many online games and allow the player to equip their character with extras or obtain new content. Apps are another example. Many apps can be purchased from the App Store or Google Play Store and offer features such as notes, calendars or weather forecasts. When you own digital property, you have access to the contents of that “property.” This can be software, games or other digital content. So owning digital property can offer numerous benefits, as long as you familiarize yourself with the subject and know what type of digital property is best for you.
The legal issues in this area are usually clarified via general terms and conditions or copyright law. However, there are efforts, especially in connection with blockchain and DLT, to change this in the future, as these are often rather makeshift constructions.
What are the risks of acquiring and owning digital property?
There are some risks associated with acquiring and owning digital assets. First of all, it is important to mention that you should only invest in assets that you understand. This means having a good understanding of the industry and the markets in which you invest. It is advisable to monitor the latest trends and news to stay abreast of the latest developments. In addition, it can be a risk to participate in unregulated markets. Therefore, it is important to trade only with trusted platforms and make sure that you trade with professional brokers. In addition, you should try to keep your investments diversified and be aware of the different types of digital property and which ones are best for you personally. Furthermore, it is important to note that digital assets can be volatile. So if you’re planning to invest in digital property, you should definitely be prepared to react quickly to market changes and possibly have to factor in losses. In conclusion, then, digital assets can offer both opportunities and risks. However, with a solid knowledge and good planning, one can benefit a lot from “investing” in digital assets. However, it is important to always keep the risk in mind and think realistically about the potential gain.
How can you make sure your assets are protected?
There are many ways you can protect your assets. An effective and secure method is to use hardware wallets. These devices are secure storage locations for digital assets where the owner has full control over their private keys. This means that only the owner has access to his digital assets and no other person or institution. This increases the security of the asset and makes it less vulnerable to hacker attacks. Another way to protect one’s digital assets is to take proper security measures. This includes setting a strong password with a combination of upper and lower case letters and special characters. It is also advisable to set up two-factor authentication (2FA) to make access to the account as secure as possible. In addition, it is essential to stay informed about the latest developments regarding blockchain technologies. Owning digital assets requires constant attention and vigilance when handling the investment. Finally, to ensure that you are always aware of your assets, it’s a good idea to make regular backups of your private keys and store them in multiple locations – preferably offline in the form of paper wallets or USB sticks. This allows you to restore your digital assets at any time in case they are lost or stolen. While it’s not always possible to make digital investments completely secure, there is a lot you can do to minimize your risk and protect your capital from cybercrime and fraud. With the right precautions, you can make good use of the opportunities offered by owning digital assets – without having to be afraid!
Info and conclusion
As an attorney specializing in contract law and with over 20 years of experience as a business owner, I primarily assist companies who want to create secure platforms that inspire confidence in more inexperienced users. For me, regulation is therefore not a nuisance factor, but in my opinion the key to the success and growth of the industry. Talk to me!
