gold and blockchain
Share

Table of Contents

 

1. The Origins of Kinesis

2. Gold and distributed ledger technology come together

3. Eliminating Abstract Value

4. Why Kinesis is Superior to other Cryptocurrencies

5. Understanding Asset-Backed Systems

6. The Kinesis Business Model

  1. Minter Yield
  2. Depositor Yield
  3. Holder Yield
  4. Referral Yield

7. The Growth Incentive

8. Kinesis Roadmap

 


 

Gold has had value attributed to it since ancient times. All writings from civilizations long gone have mentioned gold. It has undergone numerous changes in order to be more accessible for investors.

Gold is, of course, a physical metal. Unlike fiat currencies, it cannot be printed or duplicated whenever the governments of the world decide they would like some more of it. Gold mining, like all mining, is an expensive and time-consuming process. Gold is present in a limited quantity when it comes to above-ground stocks. In its physical form, it is in no way an effective currency to use for daily exchanges. To store or move gold is an expensive process. All this has led investors to search for an alternative to holding physical gold.

Gold ETFs have long been an option for investors. These exchange-traded funds have long been an easy way to add gold to a portfolio without having to store the physical metal. There are also gold mining stocks for those who choose to seek enhanced returns. However, there is no way to use gold as a daily currency for transactions, at least not in modern society. With blockchain technology, this will change.

The Kinesis platform has numerous ties to the gold and precious metals industry. Kinesis is partnered with ABX, the Allocated Bullion Exchange, a leader in the gold and precious metals industry. They have numerous exchanges in several different countries and are a global platform for the sale and exchange of physical gold. Kinesis is doing with blockchain what ABX did with the internet, offering all new and interesting ways to harness the best store of value the world has ever seen.

 

1. The Origins of Kinesis

Kinesis has a distinct and grand vision for its platform that rivals anything else in the crypto world today. There is truly no other platform in the blockchain industry today that comes close to the full-fledged financial institution that Kinesis offers. Kinesis is led by Chief Executive Officer Thomas Coughlin. In a recent interview with the financial and investing show Crush the Street, Coughlin describes his background in the precious metals industry and the origins of the Kinesis vision.

Coughlin describes how the path that led him to Kinesis started in 2008 with the financial crisis. “I was looking for basically a sound investment and safe haven instrument, which led me into the precious metals industry. As I went into that industry, I identified so many inefficiencies within this space.” Coughlin’s background in the finance industry comes from his experience as a hedge fund manager. From there, he founded ABX (Allocated Bullion Exchange). At the time, ABX was a leader in merging technology and gold in ways that investors have needed for some time. The natural next step to further the merging of gold and technology was to harness the power of blockchain. This is exactly what Kinesis strives to do.

In this interview, Coughlin touches on some of the key differences between ABX and Kinesis. He mentions that it was always in his mind to be able to facilitate peer to peer transactions in a way that was completely decentralized. This was an issue as ABX is a centralized system: ABX stands in the middle of every transaction, so users don’t have full control over what they do with their funds. With banks, for instance, having a man in the middle can cause long backups for your funds. Your accounts can also be locked or held against you. This is simply not feasible for business owners and individuals. Kinesis had a strong vision for their platform that needed to be completely decentralized for the benefit of all users and to avoid the problems banks cause.

 

2. Gold and distributed ledger technology come together

Kinesis is focused on what makes sound money. This principle has driven Coughlin for a long time. Fiat currencies all over the world are facing deflationary pressure due to central banks overprinting and diluting the value of their national currencies. For this reason, Kinesis decided to utilize gold and silver as the backing assets for their cryptocurrencies, KAU and KAG. Both these cryptocurrencies are backed on a one to one basis: one gram of gold for every KAU and 1 ounce of silver for every KAG stablecoin. Kinesis takes gold and silver and essentially puts them on a high-speed rail blockchain system.

Bringing gold onto the blockchain opens it up to many new possibilities that were not present before. First, transacting with gold becomes an anonymous process. By utilizing the blockchain, anyone can send payments and transact with Kinesis cryptocurrency completely anonymously. This protects individual liberties and identities in an age where privacy information seems too easy to fall into the wrong hands. With traditional banking systems, the method of exchanging account information to send and receive payments has led to numerous identity theft issues. Hackers can also easily get this information just from your online shopping habits. These are security risks that need to change in the future.

With Kinesis, gold can become an instant method of payment anywhere in the world. With blockchain integration, it becomes a highly efficient medium of exchange. The world has long moved past gold and instead used fiat currencies essentially backed by nothing, which has led to financial crises in many different parts of the world. The devaluing of currencies has been going on for decades, further promoting gold and precious metals as a stable alternative. Kinesis brings back stable value for everyday commerce by introducing gold into this new technology sector and integrating it with cryptocurrencies.

 

3. Eliminating Abstract Value

In the interview with Coughlin, the theoretical nature of bitcoin and all fiat currencies, in general, is a very significant topic. He states that much of the uncertainty in the crypto market stems from the fact that nobody is very sure about what the true worth of these cryptocurrencies is. Maybe it’s even zero. Mostly they are valued according to the confidence in the development teams. Cryptocurrencies today are somewhat similar to traditional fiat currencies such as the USD or Euro, where the government’s confidence is what keeps them moving.

Kinesis cryptocurrencies remove this need for trust, effectively producing a trustless network, which was supposed to be what Bitcoin and alternatives cryptocurrencies had to offer. As each token is verifiably backed by gold and silver, a consumer does not have to believe in the value of the Kinesis tokens. Kinesis gold and silver stablecoins can maintain their value for as long as these precious metals keep their value. Stablecoin options in the crypto market have finally arrived, long overdue. Stablecoins such as the Kinesis currencies would allow users and merchants to embrace crypto on a large scale, and eventually, make crypto an everyday means of payment and exchange. As of now, there is almost no acceptance, leaving many questioning what Bitcoin’s true intent is, and whether it will continue to maintain its value in the future without drastic improvements to the underlying technology. Kinesis will outperform major cryptocurrencies by eliminating the abstract value and volatility.

 

4. Why Kinesis is Superior to other Cryptocurrencies

When you think about trust, it’s fair to say that consumers trust the reliability of gold more than the reliability of experimental technologies. That is because gold has an intrinsic value. While our society has experienced various developments in technology, the value and function of gold have both remained mostly constant. Our reliance on steam or coal-based resources, and the industrial revolution in general, are long past, and yet gold has retained value throughout history. As we watch the growth of this new technology called cryptocurrency, and the confidence laid in it, we must bear in mind that it runs the risk of becoming obsolete and redundant one day.

All technology is evolving rapidly, and there’s no telling whether there’s a better alternative to crypto just around the corner. That makes propositions like Bitcoin and other cryptocurrencies very risky, particularly given that such blockchain systems don’t have achieved mass adoption yet. This puts Kinesis in a very favourable position, as their stablecoins are backed by the greatest store of value in history: gold. That means Kinesis has the ability to be the pioneer in real stablecoins. By comparison, Tether, another stablecoin, has seen nothing but controversy. Tether is backed by USD, a currency that is already rapidly deflating. Aside from this, Tether has several concerns about their lack of audits open to users and the public. For Tether holders, this hasn’t been pleasurable. Tether’s value is supposed to be bound to one dollar, but that’s not the case: it has its own volatility, failing to keep the dollar peg.

Kinesis has verifiable stocks of precious metals, and all transactions on the Kinesis blockchain will be open for review by the public. Worldwide, fiat currencies are experiencing rapid deflation, with Venezuela Bolivars and Turkish Lira being prime examples of potential catastrophes. Similarly, any stablecoins backed by fiat currency will suffer deflation over time. Kinesis will remain a strong alternative to all cryptocurrencies and all stablecoins and will be a pioneer in cryptocurrency adoption within real-world trade. The Kinesis network will continue to expand while other blockchains gradually see less and less usage.

 

5. Understanding Asset-Backed Systems

Kinesis cryptocurrencies are simply gold and silver, divisible in units down to sizes that can be used to be paid for smaller transactions. The capacity of cryptocurrencies to be completely fungible and broken down to small amounts is a major advantage compared to gold stocks and bars. In fact, no more coins can be minted without the gold being deposited in the vaults of the ABX network. This means that the network does not have „free-flowing“ coins that dilute the individual value of Kinesis stablecoins. 

Kinesis has a two-tier business structure. The first tier is where users trade their fiat currencies to literally mint their own Kinesis currencies backed by gold and silver, which are then deposited directly into their Kinesis wallet. This effectively allows users to be their own central bank, and have complete control over their currency without any middle man. For complete accountability and permanent records, the second tier structure is the Kinesis blockchain ledger.

 

6. The Kinesis Business Model

The Kinesis system today is distinct from any other in the crypto space. What Kinesis is providing to all network participants is a complete yield and reward-based program. Kinesis users receive a yield, making Kinesis an appealing passive investment in comparison with investments like rental property or stocks. Typical gold investors will not expect any kind of return, but Kinesis has created a yield mechanism within this new industry that will reward users in four different ways.

Minter Yield

When minters make their coins from Kinesis, they are bound to this individual forever. If the minter uses these in transactions, the coins return a 5 per cent in perpetuity, dependent on transaction fees. The blockchain ledger enables us to monitor forever the movement of these coins. That will allow Kinesis to decide and continue to reward the original minter of these coins. It is an opportunity for users to continue to engage in the network by minting and using new coins, and the Kinesis network forms basically a new ecosystem.

Depositor Yield

Kinesis depositors will also receive a 5 per cent share of transaction fees from their Kinesis wallet on the first deposit and use of the Kinesis coins.

Holder Yield

holders receive a 15 per cent share of all transaction fees for those who want to keep the Kinesis coins instead of using them. This is measured on a regular basis and the balance is sent every month to their Kinesis wallet.

Referral Yield

This yield is unique for those who want to refer users to the application Kinesis. Referrals will offer even greater benefits for users of the app. The Growth Incentive What Kinesis does is stimulate the development of a network of stablecoins. Modern, stablecoins are not involved in rewards or development. For alternatives such as Tether or TrueUSD, the only justification for using those currencies is either as a safe haven against the violent instability of Bitcoin or as an onramp to major crypto exchanges. More than that, there is little opportunity, and on the contrary, you are essentially losing interest in the case of Tether and other big stablecoins, as Tether has struggled to hold its dollar peg several times. And just keeping your portfolio bleeds. 

 

7. The Growth Incentive 

What Kinesis does is stimulate the development of a new network of stablecoins. Modern stablecoins are not involved in rewards or development. For alternatives such as Tether or TrueUSD, the only justification for using those currencies is either as a safe haven against the violent instability of Bitcoin or as an onramp to major crypto exchanges. But there is little usage opportunities so that people are essentially losing interest in Tether and other big stablecoins, as Tether has struggled to hold its dollar peg several times.

Kinesis has a system of yields in place in order to enhance organically the increase of the network. This ensures that Kinesis stablecoins get used rather than alternatives at major exchanges. 

Kinesis ties to ABX and other business partners will also drive growth for Kinesis. ABX is namely no newcomer. It is truly a well-established and trusted forum with many high-level connections. Coughlin outlines a strategic partnership with a major mobile bank with 150 corporate clients and millions of active users in place. Such collaborations were born out of the current network of ABX. The Kinesis platform is the most distant from other crypto-startups, most of which only have a white paper and an idea and have to start from the ground. Kinesis is already well-established and linked to a broad community interested in this project for sound money.

 

8. Kinesis Roadmap

Developments for Kinesis are progressing rapidly. The KVT tokens are yet another offering of the Kinesis platform currently on public sale. The KVT token sale represents a chance to share in the growth of the entire network, much like stocks for businesses. The KVT tokens give users a share of the network’s entire fees base. This will be a substantial feature once the Kinesis platform launches fully. The capital raised by this token sale will go towards building all the infrastructure and technology required by the Kinesis platform. 

Kinesis will start selling their long-awaited gold and silver backed cryptocurrencies, KAG and KAU, in early 2019. It is the first step forward for the Kinesis network. A Kinesis debit card is also expected. This card allows the Kinesis users to use their Kinesis assets for everyday transactions, even though cryptocurrencies are not recognized yet. This is in addition to the Kinesis wallet, which will be connected directly to the Kinesis debit card. Kinesis will also launch both its proprietary Mint and Exchange in order to allow to create and exchange KAG and KAU against other currencies, both fiat or crypto. 

The market for cryptocurrency needs a leader in stablecoin, and Kinesis will take on that position. 

Kinesis delivers a full closed monetary system and does not guarantee stability for services outside of the Kinesis network. The system has been well thought out and considered for every detail and need. While other blockchain companies hire wallets or exchanges for growth, Kinesis creates all of these products itself. This is a team with an unblemished record of meeting their clients’ needs. Coughlin, while at ABX, imagined Kinesis even before blockchain technology existed, he was only waiting for the right time. Blockchain technology has changed the finance sector, allowing the Kinesis platform – and others – to accomplish their missions. 

With the Kinesis ICO coming up for the KAG and KAU tokens, the future of stablecoins is within reach. Legacy monetary regimes will continue to be devalued and people around the world will continue to pursue alternatives to guarantee their financial futures. What they’ll benefit from the Kinesis platform is full, unhindered financial independence. Kinesis abolishes the middle man and ensures that all participants have total power over their funds forever. Transactions are not blocked, nor are accounts like services such as Paypal closed. Customers have their own Kinesis wallet and can use their funds whenever they want. 

 

 

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here