A commodity that exists digitally, as opposed to in “meatspace.”
There is a huge range of things that might be termed a digital commodity. These include things like computing power and storage. Increasingly, however, the term digital commodity is primarily taken to mean digital currencies.
Confusingly, digital commodity trading can also refer to selling real-world assets such as oil and gas electronically.
Here, digital commodity trading relates to the digitization of different elements of the commodity trading chain.
For example, technology can be used to automate the securitization of assets; for massive data mining intended to help traders make better investment decisions; for optimizing models to help traders take better option positions; and, at the end of the chain, for the automation of back-office processes such as settlement and documentation.
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