It’s no secret that cryptocurrencies are now a worldwide phenomenon, and perhaps you already know a thing or two about them. However, asset-backed cryptocurrency is a new concept that most crypto enthusiasts are yet to understand. First-generation cryptocurrencies have been accused of lacking intrinsic value. As a result of this weakness, some people are still skeptical about cryptocurrencies. For instance, the high volatility and unpredictability of Bitcoin make it a risky medium of exchange for merchants and a poor store of wealth for investors.
Asset-backed cryptos are different from first-generation cryptos as they are characterized by liquidity, security, and stability. With this added advantage, these assets are likely to overthrow their predecessors such as Ethereum and Bitcoin.
As your caring partner, we decided to launch a series of articles where will explain everything you need to know about asset-backed cryptocurrencies. In this post will explore: What is an asset-backed cryptocurrency?
What makes an asset-backed cryptocurrency different?
Benefits of asset-backed cryptocurrencies
Popular asset-backed cryptocurrencies
Challenges of asset-backed cryptocurrencies Let’s dig in.Just as the name suggests, asset-backed cryptocurrencies are crypto coins that have a link to an object with economic value. In other words, asset-based cryptocurrencies are used to digitize an asset, and the record is stored on a blockchain.For instance, a real estate property is sold to the public, and the information is digitized instead of using traditional paperwork. Records such as; deeds, location of the property, as well as ownership history of the property are stored on the blockchain.Asset-backed cryptocurrencies that […]
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