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.
Tether for example has got into trouble for not being able to prove it is backed by a reserve of dollars.
It is really hard to believe on something we have not seen yet like the proofs of Tether that it is backed 1:1 by existing dollars, however last year a bank based in Bahamas receive a letter as supposed the proof of reserves. Tether has been the center point of question "Is it backed?" since it is the popular stable coin most used by the traders. They assured that it is 1:1 backed by their reserves coming from fiat currency, cash equivalents and other tangible assets. So basically the full circulated USDT across the globe is safe and backed.
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.
With the current state of venezuela right now? Most likely they will not get trust. A coin backed by oil with unstable price? who will believe on this?
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.
In most cases people will surely buy gold for backing but with the modern technology we have some will choose a volatile one which is cryptocurrency.