We have seen some of the assets backed crypto coins in the market on the way and do you guys think this will be the future as this is directly based on national assets like gold and other products like charcoal and energy based products. This will help in growth of country's economy if not taken over by greedy corporatesand and and will it have government's support or soft corner in the regulator's eye as it will bring in some money from outside.
The problem with claiming that you have an asset to back your coin is that the regulators demand proof that the asset exists. Tether for example has got into trouble for not being able to prove it is backed by a reserve of dollars.
The other asset backed coin - Venezuela's Petro - claims to be backed by oil. But no-one trusts the Venezuelan govt to make that oil available to give the coin value.
People would be better off sticking with regular kinds of cryptocurrency. If you want assets like gold or oil, buy the gold or oil company shares directly.
Thanks for highlighting the other side of asset backed crypto as well, yes you are right when we initialy heard about Petro we thought it will break all the barriers but we don't see any further development, Tether running into trouble with authorities as they demand proof of asset which is fair from their point of view but not feasible to show accounts to regulator's everything make it too centralize and we will lose out on decentralized nature of it.