Topic: Bitcoin vs. Asset-backed cryptocurrencies: The race for future adoption - page 2. (Read 623 times)
June 04, 2020, 08:56:44 AM
POW cryptocurrencies have different value propositions than the stablecoins, so I think it won't affect Bitcoin. The evidence is there if you look at USDT, TUSD, USDC, etc., and yet Bitcoin is still the king of all cryptos. One of the most important things is trust. Bitcoin doesn't require users to trust the central authority. Asset pegged coins still need users to trust and audit the issuers.
June 04, 2020, 08:40:51 AM
Can you mention any asset-backed crypto you know?
Digix (DGX) it's a digital currency backed by gold and mirrors it's real time price. One token is equivalent to a gram of gold.You can research on digital currencies backed by physical assets to get more options.
Before that Aurum is the first one to do that http://www.aurumcoin.com/ if i remember I stumble them back 2015 when I am not yet active in Cryptocurrency, just checking from time to time, I just saw them launch a bounty campaign way back, I hope they can launch a campaign.
June 04, 2020, 07:38:03 AM
Can you mention any asset-backed crypto you know?
Digix (DGX) it's a digital currency backed by gold and mirrors it's real time price. One token is equivalent to a gram of gold.You can research on digital currencies backed by physical assets to get more options.
Sure I will check it out, thanks
June 04, 2020, 07:36:18 AM
Can you mention any asset-backed crypto you know?
Digix (DGX) it's a digital currency backed by gold and mirrors it's real time price. One token is equivalent to a gram of gold.You can research on digital currencies backed by physical assets to get more options.
June 04, 2020, 07:30:02 AM
A couple of projects are already proposing the issuance of asset-backed cryptocurrencies. Just like the era of the gold standard, cryptos could be backed by any popular commodity, real estate, precious metal, etc.
Asset backed cryptocurrencies are already a thing and there are many projects already launched in that field.The advantage is that it solves the problem of extreme volatility associated with purely speculative risk assets like Bitcoin, this factor has prevented many big players from investing in Bitcoin.
The disadvantage is that it is usually centralized, the asset in which it is backed in is kept in reserve and in control of a central authority. There have been cases of such projects team failing to make their audit reports public.Also note that the volatility and speculative quality of Bitcoin is what makes it viable as an investment option. A currency backed by an asset promises stability, this is useful for making transactions but not as an investment.
Can you mention any asset-backed crypto you know? I'm not thinking about stablecoins like USDT and PAX, they are just another dollar. I'm thinking of crypto that mirrors the performance of a real-world commodity, in the same light that the S&P 500 index tracks the top 500 U.S stocks. The closest project I can think of that has proposed and currently building something in this direction is AXIA... I am very much interested in knowing other projects doing same thing or something similar.
June 04, 2020, 07:20:54 AM
A couple of projects are already proposing the issuance of asset-backed cryptocurrencies. Just like the era of the gold standard, cryptos could be backed by any popular commodity, real estate, precious metal, etc.
Asset backed cryptocurrencies are already a thing and there are many projects already launched in that field.The advantage is that it solves the problem of extreme volatility associated with purely speculative risk assets like Bitcoin, this factor has prevented many big players from investing in Bitcoin.
The disadvantage is that it is usually centralized, the asset in which it is backed in is kept in reserve and in control of a central authority. There have been cases of such projects team failing to make their audit reports public.Also note that the volatility and speculative quality of Bitcoin is what makes it viable as an investment option. A currency backed by an asset promises stability, this is useful for making transactions but not as an investment.
Bitcoin still have its upsides, regardless. But in your opinion, I am very curious to know, will Bitcoin dominance be threatened should asset-backed cryptocurrencies begin to gain widespread adoption?
No. Bitcoin is an asset-class on its own and has advantage of decentralization and immutability. Asset backed cryptocurrencies may become more popular for effecting transactions, but cannot replace BTC. June 04, 2020, 06:56:53 AM
Good day, guys.
A couple of projects are already proposing the issuance of asset-backed cryptocurrencies. Just like the era of the gold standard, cryptos could be backed by any popular commodity, real estate, precious metal, etc. The advantage is that it solves the problem of extreme volatility associated with purely speculative risk assets like Bitcoin, this factor has prevented many big players from investing in Bitcoin. Bitcoin still have its upsides, regardless. But in your opinion, I am very curious to know, will Bitcoin dominance be threatened should asset-backed cryptocurrencies begin to gain widespread adoption?
A couple of projects are already proposing the issuance of asset-backed cryptocurrencies. Just like the era of the gold standard, cryptos could be backed by any popular commodity, real estate, precious metal, etc. The advantage is that it solves the problem of extreme volatility associated with purely speculative risk assets like Bitcoin, this factor has prevented many big players from investing in Bitcoin. Bitcoin still have its upsides, regardless. But in your opinion, I am very curious to know, will Bitcoin dominance be threatened should asset-backed cryptocurrencies begin to gain widespread adoption?
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