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The way I understand it, a physical asset is something you can see and touch, like a house or a hammer. There's things that a share gives me that BTC does not, but ultimately they are more similar to each other than to something like a physical chunk of gold or a silo full of grain.
Yes that's a physical asset.
Silo full of grain is known as a future or a commodity. I might not have the Silo or the grain physically in my possession, but my note says that I own it.
BTC is a commodity and commodities are very similar to stocks
BTC just isn't backed by anything