Post
Topic
Board Altcoin Discussion
Re: Are there any Altcoins out there backed by real assets?
by
mu_enrico
on 08/10/2019, 12:32:19 UTC
It would appear thus far that the answer to my question is "not yet".

For example, the recommendations are not backed by real income-producing assets, i.e.
diamonds, gold, U.S. Dollar, as none of these produce income streams. Real assets, by definition,
must produce a yield. Without the yield, price is a pure speculation. The better bet would be owning
the underlying commodities directly, which for the vast majority of us is simply not feasible. This means
that the native token must be built on a foundation of income from operations.
The term "asset"  only means something that has value and can be used to pay debts.
https://www.lexico.com/en/definition/asset

While the term "yield" is more closely related to business. An asset cannot yielding profits if it's not used in productive activities by a person or an organization.

My problem with the token built on top of income operations is that it will no longer function as a currency, but a security, or a non-dividend paying stock.