Various entities and institutions are looking to issue their own cryptocurrency now or in the future. Every single one of those ventures will be backed by hard assets of some kind. Tiberius Group, the Swiss commodities fund, is issuing its own new token. Unlike most competing projects, this new currency will effectively be backed by precious metals.
Tiberius Group’s Cryptocurrency
The financial industry has shown a strong tendency to disregard Bitcoin. Although most firms acknowledge the potential of blockchain, they don’t envision cryptocurrencies as a viable long-term solution. That is quite odd, considering so many institutions mull issuing their own cryptocurrencies at this stage. Switzerland’s Tiberius Group is one of the first bigger firms to take the plunge.
Through its Tiberius Coin venture, the group is taking an interesting stance toward cryptocurrencies. The firm is intent on creating a more stable digital currency by pairing its Tiberius Coin with precious metals. Multiple iterations of the coin will be introduced, depending on which metal they are backed by. One product focuses on rare metals, whereas another is backed by common metals. An interesting and diversified approach that will introduce a lot of new opportunities along the way.
As one would expect, all metal reserves will be stored in a secure vault. In the case of Tiberius Coin, its assets are located in warehouses and refineries around the globe. This allows Tiberius Group to use this cryptocurrency venture as a marketing and promotion effort first and foremost. It still offers a viable investment product for consumers and corporations alike, but it will come at a steep premium cost as well.
The bigger question is whether or not investors will show any interest in these new cryptocurrencies. Other companies have attempted to do the same, although they are usually limited to precious metals such s gold and silver. Tiberius Group offers a bigger selection of metals to back their own cryptocurrencies with, although that may not necessarily be a viable long-term approach either. It will all depend on how accessible these currencies are and whether or not they offer any real investment potential.
The venture by Tiberius Group is a rather interesting one. Although the backing of cryptocurrencies by metals is not a bad idea, it may not necessarily attract institutional traders either. The chances of scoring big profits with Bitcoin are much greater compared to the Tiberius Coin counterpart. At the same time, there are those speculators who prefer stability over volatility. Both forms of investment can easily coexist for the foreseeable future.
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