Bearer-asset

A bearer asset is a financial instrument that belongs to whoever physically holds it, with no need for registration or verification of identity. Traditionally, bearer assets included things like cash, which, during the gold standard era, let the holder exchange it for a set amount of gold from the central bank. The defining feature was simple: possession was proof of ownership. Today, cash is no longer viewed as a bearer asset, since it no longer provides any claim to gold or other backing assets.

In the digital age, bitcoin serves as a modern example of a bearer asset. Whoever controls the private keys controlling a bitcoin address effectively owns and can spend the bitcoin attached to it. Unlike traditional bearer assets, bitcoin doesn’t represent a claim on another asset—it is valuable in itself. Because of this, keeping private keys secure is crucial, much like guarding physical bearer assets in the past.