Hard and physical aren't the same thing. Hard meaning it's difficult to create more of them. In BTC that means proof of work (electricity spent to mine btc) and max 21 million. See the difference?

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Hard asset is a commonly used term to refer to physical or tangible assets I have no idea where you are getting your definition. Maybe use the term scarce asset or finite supply asset.

You do hear some people in the BTC community use it this way but I see the confusion.