Can Cryptocurrencies be backed by physical assets

In the past cryptocurrencies were attached to a bad reputation; only those in the “underworld” would use that type of payment method. However, as digital systems evolve, attitudes change, and technology improves, our way of doing business is rapidly changing along with the way we exchange currency. One of the more recent currencies to join this revolution is the DIMND token. The DIMND token is a Ethereum on a blockchain network. Its difference lies in the fact that each token is backed by a physical, gem-quality, polished diamond.

For those who think that cryprocurrencies are a passing movement, take into consideration the fact that Japan now accepts Bitcoin in their retail establishments. Russia and China are both on board, and the Australian government is looking at ways to facilitate digital currencies. In developing countries, cryprocurrencies are making it possible for poverty stricken individuals to trade for goods and services; in countries such as Zimbabwe where the financial system has collapsed cryptocurrencies are often the only way to pay for goods and as a savings vehicle.

The DIMND token will offer a cryptocurrency back by physical assets; diamonds held in a secure, Freeport vault, meaning that investors can benefit from being VAT exempted for their initial investment. The DIMND token will act as others do; it conforms to the Ethereum token standard. All tokens created on the Ethereum network use the same standard; those tokens will be easily exchangeable and be able to immediately work with Dapps that use the DIMND standard. What sets DIMND aside is that it has physical value because polished diamonds back it.

Apart from being tradable, ethereal token DIMND offers stability historically associated with the diamond industry. DIMND is great diversification from other tangible and intangible savings that you may have. With the price of diamonds expected to continuously rise at 4%-6% per year DIMND can be considered as a long-term investment.

They may be new to our economy, but cryptocurrencies are no fad. With more governments financial systems in crisis and security breaches of traditional financial systems on the rise the turn to cryprocurrencies may soon become the reality for everyone.