Gresham's law
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By Thomas Coughlin, CEO at Kinesis Limited

Just as our sun unconditionally provides an indiscriminate life-stimulating share of energy to Earth, we offer a comparative energy system to stimulate the movement of capital and assets so as to boost the overall trade and economic activity in a fair, honest and rewarding method. This is a completely new monetary system, based on motion – kinetics – and speed. We call it the Kinesis System. 

The Kinesis System represents an evolutionary step beyond any monetary system available in today’s world. This strengthens money as both a value store and a medium of trade and has been built to benefit everyone. The essence of the system’s mechanics is the life-long yield which works as a boost for money velocity. Outside capital is drawn into the system through a highly attractive risk/return ratio and then placed into motion in order to encourage trade and economic activity. 

Kinesis currencies represent ownership title of an allocated asset, i.e. gold or silver. To this, Kinesis adds a specific multi-faceted yield structure that fairly distributes the wealth generated by the system among the system’s users.

Kinesis is a monetary framework based on minimizing risk, optimizing returns, stimulating velocity, and optimizing adoption rates. It defeats Gresham’s Law of Money  : those who prefer good money over other currencies appear to hold it instead of using it as a payment currency, and rather to use the less appreciated currency for payments. With the Kinesis system, this pattern is broken because of the incentive (yield) for using „good money“ (gold or silver). 

 

Kinesis will attract capital from:

  1. Cryptocurrency markets — currently they offer little to no yield
  2. The gold and silver markets — currently little to no yield
  3. Fiat currency markets — low to negative yield via debt-based interest rates
  4. Investment asset markets — comparatively low yields within the stock market and property investments

Essentially, if someone can purchase the same asset at the same price, but with substantially lower risk and higher returns, it makes little sense for them not to select an asset that has a better risk/return ratio, particularly when substantial returns are offered. Within the Kinesis monetary system, title to the „allocated money“ is kept by the holders of Kinesis currencies, while banks keep the legal title to their consumer deposits and thus place those deposits at risk. This means that the Kinesis system is much less risky and with much greater return than legacy alternatives. With global low to negative interest rates, bail-in guarantees, elimination of depositors’ insurance, and banks keeping the legal title to their consumer deposits, preferring risk and nil-to-zero returns with marginal risks and high returns, no rational investment currently exists over the alternative Kinesis system. Kinesis sounds too good to be true when compared to traditional fiat money and fractional banking structures, but it is not. Once implemented, Kinesis will lead a highly disruptive paradigm shift in money. 

Kinesis was created using the very best assets of the old-world capital – gold and silver – and the new-world creativity – blockchain – and merged them in a new equal, inclusive and incentivised way to power banking and trade. The effect is something incredibly powerful that will forever change the way we all understand money.

 

The primary elements of Kinesis are:

  1. Gold and Silver — The primary currencies offering titles to 1:1 allocated physical gold and silver are the most effective stores of value for use in commercial and private transactions and investment.
  2. Yield — A continuously recurring yield generated from economic activity, not from debt-based interest provides a definable value in terms of Net Present Value (NPV) calculations to be used in institutional and retail investment.
  3. Blockchain — Peer-to-peer decentralised distributed ledger technology means that blockchain may become obsolete, but distributed ledger technology can only be enhanced.

Kinesis will never end because those components will never be useless and their function can only be strengthened. Nothing can take away the inherent value of assets and the promise of potential cash flows, and technology is only going to improve.

 

Many cryptocurrencies with a value decided by the anonymous decentralized blockchain payment capability and their regulated supply scarcity, are also at risk of losing value when their initial value proposition is eroded by improved solutions coming to market. This is demonstrated by the ongoing decline of Bitcoin’s supremacy and has been observed throughout history in many other industries and markets as competitors grow. 

A major contributing factor to cryptocurrencies’ instability is that they cannot be appraised. Through implicitly backing a currency and then putting a return on its use we establish a way to appraise and define the economic benefits of Kinesis stablecoins. This generates a currency that is secure and stable but also rewarding with a highly desirable investment risk/benefit ratio attached. Such a form of currency, along with attracting capital from institutional and retail investors and savers, can achieve real-world application in trade and private transactions. 

But Kinesis is not just a currency; it is a modern parallel monetary structure that sits alongside but also is capable of incorporation into the existing fiat and fractional monetary and banking structures that are centrally regulated.

This concept is highly innovative, but in order to take it further, a highly disruptive retail and institutional marketing plan with specific delivery and dedicated acceptance from day one of the launch is already in place. Pre-existing investment agreements exist for the Kinesis currency suite that will, by a substantial multitude, eclipse the largest ICO to date. Kinesis is being introduced to precious metal trading, mining, refining, trade, technology, blockchain, mobile banking, vaulting, postal network and marketing by a consortium of industry-leading organizations. The liquidity, which will be generated by qualified participants in the bullion market and others, will allow billions of dollars to enter and leave the market efficiently. Direct and indirect integrations can allow hundreds of millions of users for rapid adoption. 

Through the evolution of blockchain, cryptocurrency and mobile apps, a tremendous opportunity arose for everyone. It’s an opportunity to apply ingenuity to money – countering Gresham’s Law – and be part of a movement focused on the individual. We have all been able to embrace and sustain a program that helps us personally and collectively, based on nothing more than involvement. This system blends modern world decentralized technology with the oldest, fairest, and most sustainable type of money to empower and represent all our needs equally and in a democratic manner.

 

 

 

 

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