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Which tangible assets are commonly used to back digital tokens?

avatarSoon SoonDec 27, 2021 · 3 years ago3 answers

What are some examples of tangible assets that are frequently used to support digital tokens?

Which tangible assets are commonly used to back digital tokens?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    One common example of a tangible asset used to back digital tokens is gold. Gold-backed tokens are created by linking the value of the token to the price of gold. This provides stability and a tangible asset to back the digital token. Other examples of tangible assets used to back digital tokens include real estate, precious metals, and commodities like oil and gas.
  • avatarDec 27, 2021 · 3 years ago
    Tangible assets such as real estate and precious metals are often used to back digital tokens. By linking the value of the token to the value of these assets, issuers can provide investors with a sense of security and stability. This can be particularly important in the volatile world of cryptocurrency, where trust and stability are often lacking.
  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we believe in the power of tangible assets to back digital tokens. We have seen great success in using real estate and precious metals as collateral for our tokens. This provides our investors with a tangible asset that they can rely on, and helps to build trust in our platform. Tangible assets are an important part of the future of digital tokens.