Cryptocurrencies backed on real world assets is the path to be used to consume of goods and services, and investments. Additionally can become viable the securitization of relevant classes of assets, that, by now, still beyond of the average investor. This is the opinion of the Director of Business Development of Paysafe Group, Daniel Kornitzer, that published an article in he’s LinkedIn account.
So, Kornitzer defines the actual moment as Crypto 2.0, highlighted by the research of stablecoins – backed in fiat money. Therefore, the development of a cryptocurrency backed in a bask of assets of real world shall be a next step in this movement. The purpose is to back cryptocurrencies in gold, properties, fiat money, carbon credits, art works, and others. For example, properties shall be 60% of bask, assets 20%, gold 2%, and so on. Reflecting the weight of those assets in the real world.
To the executive, volatility of the cryptoassets not backed don’t allows it to be used to loans. For example, if someone takes a loan of US$ 200 thousand, it can turn into US$ 20 thousand or US$ 2 millions. Although he considered that have space to the stablecoins in the actual scenery, he also assert that this new step is necessary.
So, Kornitzer, lists some advantages to sustain him’s argument. Among those are the stability, value storage, protection to purchasing power and global access. Additionally he also lists as benefits the liquidity, robustness, guarantee and transparency.
Conclusively, the proposal of Kornitzer seems to be viable. Today, excepting stablecoins, the value of the cryptocurrencies is based exclusively on the supply and demand. It makes the FUD (Fear, Uncertainty and Doubt) a powerful element to generate very fast and huge volumes sales. And, in fact, this is a strong reason to the cryptocurrencies has not been mass adopted. Therefore, this is a very viable way to take the best from those cryptoassets.