Abra-CEO-Describes-Use-of-Bitcoin-as-Digital-Collateral-for-Real-World-Assets

Bitcoin has been looking for a place in the financial industry since it was created over 10 years ago, and the way it should be used has been hotly debated. Recently, Abra CEO Bill Barhydt spoke on his own app at the 2019 MIT Bitcoin Expo, according to reports from Forbes. As he spoke on the platform, he explained that Abra enables user to connect the value of Bitcoin to many other assets, including US dollars or Apple stocks.

At the end of the presentation, the conversation with the audience turned to ow the users on the app could impact Bitcoin’s value. However, he sees Abra as the absolute best use of bitcoin at the moment, along with the “collateralization of real-world assets to facilitate banking.” He added that there is a second layer to the app that allows for real-world payments, but there is not enough bitcoin in circulation at the moment for the collateralization of all assets that someone would use in this case.

Abra does not directly act as a custodian for Bitcoin, though it locks the funds within a multisig address. Barhydt does not think that Abra will be alone in this path, especially considering the impact of hyperinflation recently in Venezuela. While some proponents see this situation as a perfect use case for Bitcoin, the token is still extremely volatile. By pegging Bitcoin directly to the dollar, which could be done in the Abra app, the user is not left wide open to the dangers of volatility.

Following up these questions, Barhydt explained that the limit that Bitcoin faces right now is in the lack of a fully developed payment layer. He said that the price would not have a limit, but the layer one is the issue. He sees the evolution of Abra wallets becoming Lightning wallets, which would be a server version that is compatible exchanges and other banks. Luckily, the CEO also revealed that they would be announcing this development at a broader capacity soon.

For a full explanation of the way that Abra could put the price of Bitcoin up, visit https://www.forbes.com/sites/ktorpey/2019/02/07/the-bitcoin-price-could-get-a-massive-boost-from-this-app/#d5dfef952648.

Get Free Email Updates!

*Action Required* Enter Your Email for Trending Crypto News & Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Coin Market Cap Price Change 24 Hour Volume
BTC $164.93B $9,284.3174 2.29% $6.34B
ETH $29.03B $272.5440 0.49% $2.06B
XRP $18.37B $0.4321 4.00% $716.02M
LTC $8.43B $135.4022 1.24% $784.96M
BCH $7.76B $435.0229 1.48% $224.33M
EOS $6.58B $7.1550 2.40% $778.16M
BNB $4.72B $33.4685 2.09% $231M
BSV $4.02B $225.4841 8.28% $184.02M
USDT $3.48B $1.0032 0.07% $5.77B
XLM $2.5B $0.1289 0.61% $80.49M

Get 3 Free Bitcoin eBooks for Limited Time Only

Receive three exclusive user guides detailing a) What is Bitcoin b) How Cryptocurrency Works and c) Top Crypto Exchanges today plus a bonus report on Blockchain distributed ledger technology plus top news insights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.