Comdex: 2022 as Yet Another Flourishing Year for Commodities
Comdex deals with the trading of commodities on a blockchain level and keeps us enlightened about the current commodity assets situation in the cryptocurrency industry worldwide, per time.
The launch of the cAssets DevNet on March 31st, 2022, was yet another landing step into a flight for the sustainable establishment of ShipFI blockchain technology.
ShipFi will push a further bridge between the cryptocurrency world and the real world. Therefore, the devnet launch one more step closer to towards achieving Comdex’s ShipFi objectives.
How Do Commodities Flourish in 2022?
Commodities are real-world goods and are limited in supply. Physical products that have limits on their supply chains. For instance, gold can be sold via blockchain technology, but these sales are determined by the forces of demand (by those involved in blockchain and off-chain) and supply in the real-world (distribution and production).
Commodities also tend to show strength in the face of inflation. People tend to want to grab at the goods available whenever prices start to get too high, in efforts of getting them before the prices supercede their obtainable income or what they can afford. This is why hoarding takes place for resources such as crude oil.
Other reasons why commodities are set to flourish in the year 2022, include:
- Lack of production personnel (whether qualified or inexperienced), especially due to labour union strikes in factories and etc.
- The interruption in the distribution of goods due to this inadequacy.
- Currency devaluation and inflation, caused by the outbreak of war and diseases, etc.
Notable Outperformance via “the Asset Class”
Commodities markets have outperformed both the real-world financial (TradFi, CeFi) and cryptocurrency trading markets.
People invest more in commodities, as a vital or “crucial part of a ‘well-rounded portfolio’, due to the asset class’ low correlation to financial and digital assets.”
Investopedia sees asset classes as “grouping(s) of investments” which showcase features that look alike and are therefore grouped together, while still being under “the same laws and regulations.”
The groups that make up an asset class is similar to that which we see in some high schools, where classes are may be divided into A, B, C sections.
The sections making up an asset class includes:
- Stocks and shares.
- Fixed investments, such as bonds.
- Real estate investments.
- Currencies (fiat and crypto involved).
- Commodities, which is where our focus lands upon, as the most feasible and quickly earnable of all.
Investors focus on using commodities as a way of expanding the scope of their portfolios. And since there happens to be a complementary relationship (often negative, due to inflation) between the asset classes and commodities in the digital world, investing in the latter will result in the expansion.
This is the best time to seize the opportunity through Comdex🚀
Comdex is a decentralized synthetics protocol in the Cosmos crypto network; and as a product of the Persistence platform, Comdex develops the best possible solutions for the decentralization of finance (DeFi) by handing over to investors the knowledge about a widened scope of asset classes and rewarding projects.
To keep up with updates concerning Comdex’s monetization processes, you can follow up on: