What makes an Asset Backed Cryptocurrency like BitDmark different?

First-generation cryptocurrencies have been accused of lacking intrinsic value. As a result of this weakness, some people are still skeptical of cryptocurrencies. For instance, the high volatility and unpredictability of non asset backed cryptos make it a risky medium of exchange for merchants and a poor store of wealth for investors.
Asset backed cryptos are different from first-generation cryptos, characterized by liquidity, security and stability. With this added advantage, these assets are likely to overthrow their predecessors.

As the name suggests, asset backed cryptos are crypto coins that have a link to a tangible asset with economic value. In other words, asset backed cryptos are used to digitize an asset and the record is stored on a blockchain.
It is for this reason that it is perfectly suited for the asset management industry.


The prices of cryptocurrencies that are linked to tangible assets are less likely to be as volatile as those of ordinary crypto coins. Being backed by tangible assets also helps to define the mechanics that influence cryptocurrency price swings.


First generation cryptocurrencies are invisible and intangible. They also lack intrinsic value because they are not supported by a real-world asset. As a result, a majority of the public consider them worthless.
Asset backed cryptos provide an ideal middle ground to usher in new users into the crypto sphere. Since tangible assets back these tokens, they are easier to understand. Naysayers are more likely to believe in a cryptocurrency that is backed by something in the real world.
Backing cryptocurrencies with assets such as real estate and minerals could be the answer to the mass adoption problem that has been crippling the crypto industry.