Bitcoin vs. Asset-backed cryptocurrencies: The race for future adoption

[FlightyPouch]

Volatility might be a problem but it is also the reason why there are a lot of people investing in crypto currencies mainly bitcoin. I don't kniw how it works but if that will silve the problem with volatility, then it will not be decentralized, isn't it? I will stay here, and as the other posts said, there are already some cryptos that are asset-backed.

[mu_enrico]

When I think of asset-backed crypto, usually don't look at those backed by USD or another currency... I am looking at the possibility and dominance of a cryptocurrency backed by real-world assets such as real estate, precious metals, and other commodities. USDT aside, how will the world fare with an asset-backed cryptocurrency?

The problem of assets backed crypto is that we still need a trusted central (3rd) party to manage the assets, which is a common enterprise, by definition. There is nothing new about it, and you can learn from the history of why it is full of shenanigans. Hence, it won't ever be used as currency.

For example, coins backed by gold, or commonly referred to as Digital Gold Currency (DGC). https://en.wikipedia.org/wiki/Digital_gold_currency#Providers
You might see popular names like Liberty Reserve is now defunct.

* In FIAT, you trust the Government;
* In POW crypto, you trust the math;
* In assets backed coins, you trust the issuers.

Gold is a commodity, meaning it's pretty much uniform, and yet the trusted 3rd party still showed incompetence. How can they manage such complex assets like real estate?

[Ucy]

Bitcoin will not be threatened by those "asset backed' cryptos. There's no difference from those kind of cryptos from the ICOs that we have. Do you remember how many of those projects a few years ago claimed to be financially backed up, preciuos metals backed up and even real estate backed?

Yep, and those are just lies to get the unknowingly and gullible investors. But the thing is we are talking about currency here, on which case people does not use bitcoin as a currency but rather as an investment. If there is a threat that you guys are talking about, that would be the CBDC centralized yet there is a certainty on the price that we can use best for daily living. I used to think that bitcoin will be the future and universal currency, but as we go into time it seems like there is another way than bitcoin.

I also don't consider that CBDCs are going to be a threat for bitcoin. It's like you are comparing seas and rivers, bitcoin is decentralized and CBDCs are government backed which means they're all centralized so, the difference of the two is still considerably enough not to make any comparison.

Right.
 Centralized currencies moving over to the digital world doesn't really pose a threat to well decentralized currencies on level playing field. They will probably be threatening to centralized "cryptocurrencies" because there isn't much difference.
The uniqueness of decentralized cryptos and their features are part of what attract "the right people" to crypto world.
Maybe we will see those who joined crypto for the wrong reasons move over to the centralized national coins

[sunsilk]

I also don't consider that CBDCs are going to be a threat for bitcoin. It's like you are comparing seas and rivers, bitcoin is decentralized and CBDCs are government backed which means they're all centralized so, the difference of the two is still considerably enough not to make any comparison.

Right.
 Centralized currencies moving over to the digital world doesn't really pose a threat to well decentralized currencies on level playing field. They will probably be threatening to centralized "cryptocurrencies" because there isn't much difference.
The uniqueness of decentralized cryptos and their features are part of what attract "the right people" to crypto world.
Maybe we will see those who joined crypto for the wrong reasons move over to the centralized national coins

Yes, the threat should go to the stable coins and other centralized projects that claims to be that they are not. They are actually many of them but there's no need to mention those projects.

People will still go for centralized coins, they will feel safe in it and there's an approval from the government. As long as they don't understand how important it is and the difference of centralization and decentralization, they'll stay and choose to go for centralized coins like cbdcs.

[cryptoboy007]

Volatility might be a problem but it is also the reason why there are a lot of people investing in crypto currencies mainly bitcoin. I don't kniw how it works but if that will silve the problem with volatility, then it will not be decentralized, isn't it? I will stay here, and as the other posts said, there are already some cryptos that are asset-backed.

We are all here, it will be interesting to see how all this plays out in the future

[bitkanu]

Volatility might be a problem but it is also the reason why there are a lot of people investing in crypto currencies mainly bitcoin. I don't kniw how it works but if that will silve the problem with volatility, then it will not be decentralized, isn't it? I will stay here, and as the other posts said, there are already some cryptos that are asset-backed.

We are all here, it will be interesting to see how all this plays out in the future

The game has already begun and some tokens backed by the commodity such as gold storage has already exist and it can solve the volatility because the price totally depends on the gold market.
We can also determine the result of the coin backed by the asset.

[tsaroz]

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?

Bitcoin is more like a valuable and rare assets. It don't have to compete with stable type of coins. While stable coin can increase the crypto adoption and become the day to day trading coins with largest volumes and probably marketcap but bitcoin would still have it's place as the gold of cryptocurrency. The rise of stable coin doesn't threaten the dominance of Bitcoin.