Zubair Bukhari

6th April 2020

The financial impact of Coronavirus (COVID-19) shows the advantage of gold bullion based digital currencies

The COVID-19 pandemic continues to wreak havoc across the global economy, collapsing crypto and stock market value without discrimination. Wall Street experienced its worst single day of trading since the 1987 crash, while the Ethereum and Bitcoin price were each slashed by around 50% – but what can we learn from such a black swan event?

With investors the world over scrambling for a stable source of value, the recent economic turmoil has shone a light on the advantages of stable gold bullion based digital currency.

Throughout this period of hectic trading, Kinesis digital currency has maintained price stability, through a 1:1 allocation with the timeless value of physical gold bullion. Yet again, the price of gold has proved its resilience in a period of great economic turbulence. While no market escaped the disastrous and far-reaching economic impact of the coronavirus pandemic, the gold price rebounded quickly.

Let’s take a quick look at how the COVID-19 pandemic affected the stock market, the crypto markets and the gold market.

Coronavirus Percentage Impact on Market
(02/03/2020 – 26/03/2020)
Bitcoin (BTC) -26.2%
Ethereum (ETH) -39.06%
Dow Jones (DJIA) -21.36%
Standard & Poor’s 500 -16.36%
Gold (XAU) -0.60%


Despite the gold market experiencing a dip due to a widespread lack of liquidity, the gold price (XAU) has now near completely stabilised. Whereas the financial impact of the coronavirus can still be seen in severe losses in the Dow Jones (DJIA) (-21.36%) and the Standard & Poor’s 500 Index (S&P) (-16.36%) or in the Ethereum (ETH) (- 39.06%) and the Bitcoin (BTC) price (-26.2%).

The strong response of the gold price to the coronavirus market crash cements Kinesis gold bullion based digital currency as an attractive proposition for all investors, whether searching for a short-term transfer of value or a stable, long-term investment.

Even a glance at gold price history reveals why gold and silver bars are considered safe investments for the long term. The gold price continues to withstand the greatest economic challenges history presents, as gold price history seems to repeat itself.

The innovative technology behind Kinesis gold bullion based digital currency makes accessing the stable value of gold bullion easier, cheaper and more profitable than ever before.

But – why buy gold bullion through Kinesis digital currencies?

  • Spend physical gold bullion: The Kinesis debit card allows you to spend gold bullion, how you would any other currency.
  • Free storage of gold bullion: Access the value of gold bullion without paying storage fees – ever.
  • Earn a yield: Receive a unique monthly yield on gold bullion based on a proportionate share of global transactions fees.
  • Redeemability: Redeem the gold bullion underlying your Kinesis digital currency at any time.
  • Liquidity: Access your gold bullion in seconds through our exchange, debit card or payments services.
  • Fully Audited: All gold bullion is audited by a third party inspectorate.

In these unprecedented economic times, all markets have been tested. While the coronavirus pandemic has exposed a concerning fragility across the economic system, with cracks appearing in every market; Kinesis digital gold bullion based currency has displayed true economic resilience.

Kinesis digital currencies provide investors with a simple exit strategy from turbulent crypto and fiat markets, or an ideal long-term investment that prioritises stability over volatility.

Kinesis digital currency offers all the benefits of a crypto currency, with none of the risk of traditional cryptocurrency, such as Bitcoin or Ethereum.

  • Send Kinesis gold-based digital currency globally in seconds.
  • Experience total accountability of all transactions on the blockchain.
  • Decentralised system.
  • Privacy.
  • Scalability.

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