Are commodity-backed cryptocurrencies the future of the crypto-economy?

Commodity-backed cryptocurrencies or tokens could be an important part of the crypto-economy for people wanting to seek more stability in a time when many are becoming worried about another global recession. Because of their intrinsic value, they can be a good store of value, after all, people will always need to eat.

What are commodity backed tokens?

These commodity backed tokens can act as a stablecoin to weather out times of volatility and help keep that money and value on the blockchain rather than flowing back into traditional bank accounts.

What is crypto-commodity?

Crypto-commodity is a general term used to describe a tradable or fungible asset that may represent a commodity, utility, or a contract in the real- or the virtual-world on the blockchain network through exclusive tokens.

Is bitcoin a commodity?

Both bitcoin and ether, the cryptocurrency of the Ethereum network, are widely considered to be commodities by authorities at the Commodity Futures Trading Commission and the Securities and Exchanges Commission. This distinction is important because sales of securities are closely regulated by the U.S. and other national governments.