Tuesday, March 20, 2018

The StableCoin sector of cryptocurrencies is picking up steam as new one will back its crypto with Swiss real estate

It appears that resource backed cryptocurrencies finally have a label in the industry as more and more are falling under the term of a StableCoin.

StableCoins are cryptocurrencies that represent stability in price and have much lower volatility than unbacked cryptos such as Bitcoin, Ethereum, and Litecoin.  And they encompass a myriad of resources such as gold, diamonds, oil, and now real estate.

Liquidity and volatility are two issues that dog almost every blockchain technology startup and cryptocurrency, which is why “stablecoins” are becoming popular. Backed by gold, oil, fiat, and other, more established currencies, assets, and utilities, stablecoins offer an interesting alternative to regular cryptocurrencies. 
Today, SwissRealCoin (SRC) has announced its estate-backed cryptocurrency platform, which enables access to Swiss real estate value for investors around the world.
By backing the coin with real estate, SwissRealCoin hopes to provide a more stable option. 
“Real estate is a very traditional and stable asset class and therefore a very good choice for a real stablecoin,” Marc P. Bernegger, cryptocurrency entrepreneur and ICO advisor at SwissRealCoin, told me. “Switzerland stands out for its stable economic fundamentals in international comparison. Positive GDP growth, very low unemployment, a stable and liberal government, and a very low debt-to-GDP ratio help ensure a prosperous environment for our stablecoin.” 
The money raised through the SwissRealCoin ICO will be invested in Swiss commercial real estate assets. A percentage will also go into the development of its blockchain platform, which includes algorithms that the company claims will  help maintain a reasonable profit and minimize the downside. – Venture Beat
To date, cryptocurrencies falling under the guise of a StableCoin have held their value much better than unbacked cryptos, as seen by the fact that most gold backed ones have increased in price at the same time that Bitcoin and other cryptocurrencies have declined by more than 50% since their all-time highs back in December of 2017.

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