It seems like practically every day we hear about a new Cryptocurrency being released to the public. Generally, they are all pretty similar in that they're based around some sort of technology that aims to influence or completely revamp specific industries. Now, the whole idea of Cryptocurrency is to get away from the notion that currency in general has to be backed by something of tangible value i.e. gold, silver, platinum, etc. So what happens when a cryptocurrency is backed by a commodity?
I came across Zr coin while browsing late last night and was unsure how I felt about having a commodity backed cryptocurrency. Similar to most cryptocurrencies, Zr coin is based off a block chain platform but with a twist, it aims to be the center of which the zirconia (ZrO2) market circles about. You can even redeem your coins for actual ZrO2.
The ICO of ZrCoin essentially aims to raise funds to construct new facilities and purchase equipment. Early investors will have the opportunity to sell their coins back to the company at a market rate of 1 kg of ZrO2.
To date, I've seen very little discussion on Zr coin. Based on the reception of Ripple (XRP), my take is that the cryptocurrency community ideally steers clear of commodity backed (centralized) currencies. What does the future hold for these sorts of currency start ups?