Investing has evolved a lot over the years and the emergence of digital currencies has brought about a significant change in the investment industry. Cryptocurrency, in particular, has become a popular investment option due to their volatile and dynamic nature. It is ever-changing, with new concepts and tokens coming to the market every day. One of the latest concepts in the world of crypto are ‘Real World Assets’. In this article, we’ll take a closer look at crypto real world assets and their impact on the investment market.
So what exactly are crypto real world assets?
To put it simply, they are a type of digital currency that is pegged to real-world assets such as gold, real estate, or even stocks. For example, if you own one token of a real estate-backed crypto, it means you own a small fraction of that real estate asset. This adds a layer of security and stability to investing in cryptocurrencies, which are generally known for being volatile. Cryptocurrencies backed by real assets bring a sense of tangibility to an intangible asset class, allowing investors to reduce their risk while enjoying the benefits of cryptocurrency investment.
The benefits of crypto real world asset investing go beyond just stability and security. Since these assets are backed by real-world assets, their value is often more predictable and less volatile than traditional cryptocurrencies, which can experience massive fluctuations. As these assets are tied to real-world assets, they provide investors with more transparency and clarity surrounding what they are investing in. Additionally, there are also faster settlement times and reduced transaction costs compared to traditional investment routes such as real estate, which often takes months to finalize.
Real World Asset-backed cryptocurrencies have the potential to revolutionize investing in commodities. Those interested in investing in commodities often face large financial barriers to entry and storage and security concerns. However, with real world asset-backed cryptocurrencies, investors can have direct ownership and access to a commodity without the need for storage. They also have the advantage of being easily liquidatable, giving investors more flexibility and control over their investments.
One significant example of a real-world asset crypto is the blockchain platform Tether. Tether is a stablecoin that is pegged to the US dollar and is used to facilitate trades, acting as a bridge between traditional currencies and cryptocurrencies. Another example is Digix, which is a Singapore-based start-up that allows users to buy gold through cryptocurrency. The company provides a certification of ownership, which users can redeem to receive their physical gold bars.
The emergence of crypto real world assets marks an exciting development in the world of investment, with its unique selling points of stability, predictability, transparency, and accessibility. Although still a relatively new concept, these assets have already begun to carve out a place for themselves in the investment industry and are likely to grow in popularity in the foreseeable future. If you’re looking for a new investment opportunity, crypto real world assets could be the perfect option for you to consider.