What is a Fiat Currency & Fiat Money: Is it better than gold?

The value of fiat as a currency is underpinned by the strength of the government issuing it. As it is not backed by any physical goods, it lacks the strength typical for gold or silver-based currencies. The fiat definition states that all currencies whose values are not pinned by physical assets are categorised as fiat. Just like the US dollar, for instance, it doesn’t have any real asset like gold, silver, or some other physical commodity backing its value. However, it is backed by the government that issued it. Fiat money gains its value from the perception of the people on it. Say, $1.00 has the value of $1.00 because of its value printed on it, and the people trusts the authority of such print. That’s exactly how fiat money gains its value and acquire its purchasing powers at the same time. There are different currencies used all over the world in various countries, and there is a lot being used throughout history as well. These currencies can be classified into two major categories--commodity standard and legal tender. The best example of the former is the gold standard, while an example of the latter is the US dollar and most of the currencies nowadays. There’s an age-old debate that has been going on for so long, regarding which kind of currency is better. Some argue that traditional money is the best choice, while others advocate the gold standard. Knowing all the details will help you make a smart choice if you ever need to invest in such currencies. Production of Fiat MoneyFiat Money - ExampleGold Standard vs. FiatWhy is Fiat Different from Cryptocurrency?What Are The Advantages and Disadvantages of Fiat Money?Conclusion on FiatHow to Invest in Gold Production of Fiat Money Fiat is usually produced to deal with inflation, thus giving a government of a country good control over its economy. For instance, the US was once a country that used gold currency but switched to printed money to efficiently deal with economic depression. This is why paper money is associated with a better economic policy. Paper money is produced, when the government or its financial departments gives the signal to print out more cash. This is done to strike a balance of supply and demand for money in circulation, thus significantly controlling the price of goods on the market. To simply put it, prices will rise when the supply of cash runs low. However, it could be solved by printing more. But recklessly producing lots of paper money could potentially affect its value. This could possibly render it worthless in the long run. Needless to say, this could potentially harm the economy of a nation as well. Fiat Money - Example Since the 1930s, the United States cut its ties from the gold-backed currency. Back then, it was a method of keeping the country floating in the middle of a major economic depression. Other Western countries, especially those which pegs their value on the US dollar, followed suit and abandoned the gold standard. Decades later, the rest of the world followed as well, with the US dollar as the most prominent fiat money holding the global economy. Gold Standard vs. Fiat Gold standard or money backed by physical commodities bases its value on real assets like precious metals. For instance, one unit of it could cost the same as 1gm of gold, or costs 10gm of silver. Any government or entities that want to use gold-backed currencies need to have a huge gold reserve to back all the currency units they have. Basing on the example above, if a government gold reserve only has 1 billion grams of gold, then it could only produce 1 billion units. Unlike paper fiat - which can simply be printed - gold is also difficult to produce. For a gold currency to run efficiently, an entity managing it should mine, supply, and store gold efficiently. This often means an undeniably very expensive and difficult undertaking. This is one of the reasons why most governments don’t simply hop back to gold currencies and chose to stick with using printed money for their economic system. However, a new kind of asset has emerged a few years ago, and it quickly became a worldwide trend that is used on various transactions. Cryptocurrency, which is a type of virtual money that initially couldn’t be classified under legal tender or gold. Why is Fiat Different from Cryptocurrency? Cryptos could have huge differences from legal tender, but there is a significant common ground that both shares. These are assets that don’t have real physical asset backing them up, thus making cryptos a sort of a fiat cryptocurrency. Since Bitcoin was launched to the public, crypto has become a different classification of assets available on the market. It has even become a popular choice for various transaction all over the world, making investing in cryptos a good venture for many. Many compare cryptos to government-issued money, but the two are surely different in many ways. Some of their differences are: Fiat cash is centralized, while cryptos are not. This means that the government has full control over the former, while the latter have insufficient supervision and control from anyone. The blockchain is there to display all the transactions anyone has made over it.The controller of fiat, like the government, can easily pump more money into the circulation when necessary. On the other hand, cryptocurrencies have a limited number that even its developers couldn’t make more on demand.Due to its value that is dependent on its own quantity on the market, cryptos have a very high rate of volatility. Its value could easily rise or drop drastically in a snap, leaving investors off-guarded in many instances.Because of its high rate of volatility, many entities won’t accept cryptos in various transactions. Surrounded by uncertainty as to what its value will be the next day or even within an hour, use of it in any business can be detrimental.Cryptocurrencies can only exist on the virtual realm, while government money can exist as physical cash and on digital transactions. This enables anyone to use fiat money, regardless of them having access to digital accounts or not. Aside from the points mentioned above, cryptocurrencies are also considered mostly illegal to use in many countries. As a result, many companies, banks, governments and some other entities won’t accept cryptos as payment for transactions. The interesting part is, gold-backed cryptos are also on the rise, which makes regular cryptos definitely falling under fiat classification. These gold-backed cryptocurrencies are innovative solutions to various problems of fiat cryptos, like how gold-backed assets are said to have the potential of solving the issues of traditional money. What Are The Advantages and Disadvantages of Fiat Money? Now, you would probably like to know how it is better than the gold standard. Truth be told, both have their own share of pros and cons, with one being better than the other at certain angles. Advantages of Fiat Currency When favouring fiat money, one could perceive that the good control it can provide to the government is its best advantage. Through the Federal Reserve, it has even proven itself to help the United States to pass through the Great Depression of the early 1900s, helped make its economy steadfast through the decades, and has kept the country’s economy from collapsing during the depression of 2007, 2008 to 2009. Legal tender could be produced in large quantities, which is a critical tool for solving the demand for more money in economic circulation.Fiat doesn’t require demanding resources, cost, and labour to produce, unlike precious metals.Government issued money is also more convenient to distribute and use without too much hassle, especially because it can be used in digital forms. Still, in seeing the US dollar as an example, it has helped the country and, eventually, the world in significant ways. It aided the US government to cut its ties from the limited gold reserve.It has helped the USA to pass through economic depressions.It compelled many European countries to switch to fiat money as well.It has stabilised the world economy by making the US dollar a peg for many other national stores of value. Paper money has made wonders for the US, and eventually the entire world. But fiat has its share of flaws, which brings to the fore the concerns of advocates of the gold standard. Fiat currency disadvantages Albeit government-issued, fiat has done great stuff for the US and for the world. Regardless of its benefits, it has its own share of flaws that couldn’t be easily ignored. One of the biggest concerns is the diminishing value of any fiat money, which is the main reason why governments kept producing a new generation or new design of currencies every few years. But this could potentially be solved by investing in gold-backed assets like the gold-backed cryptos of Kinesis.Investing in real gold or in gold-backed assets can help in cushioning your money from the potential value collapse of any legal tender.Another relevant flaw of fiat money is on the production itself. Although it doesn’t require too many resources to produce, it still needs supplies like printing facilities.This begs the question of where the funds for such operations will be sourced? The government and banks can produce fiatAfter producing fiat money, distribution follows. This is done by lending it to individuals, organisations, businesses, and even to the government. In short, the notes on circulation nowadays likely came from bank loans or debts, giving them the power to initiate an economic problem when the loan is recalled. Thinking about this kind of collapse would probably push you to find some ways to protect your assets and properties from negative implications. Spread the risk by investing in gold-backed assets as one of the safest and most stable options. Conclusion on Fiat Paper money has perceived monetary advantages over gold-backed assets. Specifically, because it gives good economic control to the government. It could help in taming inflation, and provide enough supply of cash to the market. Moreover, fiat money is easier to distribute and use in daily transactions. It’s not that heavy compared to gold coins, and could exist both in physical and digital form. On the other hand, while the relatively easier production process of fiat money makes it a good asset for the government, the ability to print money out of thin air has consequences. In addition, the diminishing value of fiat, along with some other problems surrounding it, should not be underestimated. Because it is easy to control, some other entities could also manipulate its circulation which could lead to an economic disaster. That is why, despite fiat being better than gold in many ways, it is still important to invest in gold to help in cushioning your assets in case of unfavourable economic conditions. How to Invest in Gold In the current age of technology, the answer to this question is placed on the blockchain. Digitalising gold and silver revolutionises investing in gold online. With the looming possibility of traditional money failing, bespoke blockchain technology has been created. Kinesis, an innovatory monetary platform, is designed to make investing in gold much easier and far more efficient.Making gold run on the blockchain, makes the asset available for everyone. Kinesis gold (KAU) and silver (KAG) are 1:1 allocated digital currencies that have real gold or silver counterparts kept in secured reserve. As you make your investment, by purchasing Kinesis gold or silver, you become a legitimate owner of silver and gold bullion. This means that you now own real gold or silver, stored securely in Kinesis official reserve, in one of our vaults across the globe. Just like Kinesis, for instance, investing on 1 KAU means you can have 1gm of gold and investing on 1 KAG gives you 10gm of silver. You can opt to simply let Kinesis keep your precious metals, use KAG and KAU on your daily transactions, or claim your physical gold or silver from them. Since gold has a stable value throughout the years, you can expect it to help cushion you in the event of a dollar crash. The availability of it in the blockchain results in a far more convenient way of using gold as a tool for value transactions. To sum everything up, while fiat is taking the current economic control, gold-backed assets could help you secure a good future ahead. This makes it important to know about the monetary advantages of both, so you can maximise their value to your benefit. Learn more about cryptos in general and broaden your financial knowledge.

rafal szulczewski
rafal szulczewski

30/01/2019

How to Invest in Gold and Silver Online

Fiat currency has become unstable. Although governments have declared it a legal tender, it is not backed by a physical commodity. Unlike commodity money that is backed by physical goods such as gold bars or silver, fiat money is not a fixed resource. Certain reasons made the public lose faith in their country’s fiat currency. Take, for example, what happened in Zimbabwe in the 1990s when hyperinflation ruined its own currency. Under the leadership of former President Robert Gabriel Mugabe, the country’s economic conditions were deteriorating. To try to address the situation, Mugabe started a series of land reform programs. Unfortunately, the farms were offered to people who lack experience in agriculture, causing farms to fail, which in turn affected the country’s export revenue. As the country’s economy continued to fail, the value of the Zimbabwean dollar started to crumble. The time came for the currency to be scrapped and eventually replaced by the US dollar in 2009. Kinesis cryptocurrency, on the other hand, uses gold as the traditional store of value. It is making gold a reliable global currency once again. Also, gold trading has evolved to become very user-friendly. Crypto technology will pave way for gold trading to go mainstream. In fact, many people around the world are now using cryptocurrency as a digital medium of exchange. The market for Cryptocurrencies has rapidly grown in popularity so much so that in 2017 alone, the total value of cryptocurrencies increased by more than 3300% with a worth of $600 billion. A certain survey even revealed that 3 out of 4 people already know about the use of these digital currencies. This spread of popularity is remarkably groundbreaking. The success cryptocurrencies have seen recently only means that jumping on the bandwagon is a smart decision, especially if you do online transactions often, and don’t like waiting on the bank to clear funds. With regards to security, you cannot transfer a cryptocurrency without user permission. This means that there is no risk of fraud. It is also impossible for a third party to manipulate your transactions. You will have complete control of your accounts that are hosted on a centralised technology--the blockchain. Financial safety is one of the main reasons why some banks around the world are adopting the technology. To learn more about why you should buy gold, use cryptocurrencies, and how to do it online, keep reading. Why is gold a good investment? Fiat currencies lose their value through the years, either gradually or in a snap. For instance, when people favour a better choice of currency than existing fiat money, their trust in the latter will be lost; inevitably leading to its loss of value as well. Nowadays, the appealing gold-backed property of certain cryptocurrencies acts as better money for people, thus they lose trust in the existing official fiat money in their country. Such fiat currencies include the US dollar, which is one of the biggest currencies in the world. Since the deregulation of banks effectively separated gold from the US dollar, US banks have been printing more and more fiat money that they could lend to individuals, organisations, and even governments. Seeing that the US dollar is a fiat currency lent by banks to the government itself, one could easily foresee its downfall when banks start pulling back their cash with huge interest rates. When the US dollar falls, all other currencies pegged on it will also fall. Thus, people, governments, and other entities want to find a stable currency that won’t feel the impact of a domino effect. Thus, the astute investor and other entities consider it smart to purchase gold bullion, including in gold-backed currencies. This is because a gold standard could give a long list of assurance, which includes the following: A currency’s value will be backed by a stable asset, like gold, silver, and other precious metals, unlike common fiat currencies that lack guarantees. It could help the economy to achieve excellent stability and self-regulating capacity. The government could print as much money as the amount of its gold reserve, which could be expanded by earning more precious metals. It could discourage government budgeting problems, debts, and even inflation. Encourages a nation to be more productive, which could help it earn more gold for its reserve. Overall, you could see that gold standard could seriously help a country in many ways, especially in stabilising its economy while solving various monetary problems. When fiat money such as the US dollar collapses, it could help people, governments, or even a nation to remain standing still. A handful of experts know such facts about gold standard currencies, thus various ways are being developed regarding how to invest in silver and gold. One of these methods is using the blockchain, as gold-standard cryptocurrencies get more and more popular throughout the world. How blockchain will power the gold revolution There’s no denying that gold is indeed a valuable asset with the price of gold, or rather it’s value holding its own and increasing regularly over the centuries. It slowly, yet steadily, increased its value through time, regardless of more or fewer countries using it as an official currency or not, gold prices have always risen. It’s repeatedly proven throughout history that good money always has better economic power than fiat money, and gold is undoubtedly is the best asset to back any gold-standard currency. This pushes people to find ways on how to invest in gold and utilise it for day-to-day transactions. The problem is, it’s not easy to acquire, store, and move gold. All processes involving real gold are expensive in nature, pushing innovators to find new platforms where gold can move efficiently as a currency. This is where the blockchain technology comes into the picture. The blockchain is the platform that has contributed to the boom of cryptocurrencies, as it effectively facilitates various transactions and storage of cryptos. All the same, the top cryptocurrencies are also fiat coins, which leads to the problem of notorious volatility and instability. The blockchain is almost a perfect platform, but common digital assets are quite problematic in many ways. Therefore, innovators came up with the thought of transforming fiat cryptos into gold-standard currencies, which gave rise to gold-backed cryptocurrencies such as the Kinesis money to run on the blockchain. Such kind of crypto has real gold backing it up, with a one-is-to-one ratio of the number of crypto coins to the amount of gold in the reserve. Say, with the KAU crypto coin of Kinesis, 1 KAU is equal to 1 gram of gold in the safe reserve of the company. Such a concept made it far easier for gold to hop on the virtual stream, thus making it easier to use in various transactions. Considering that this is blockchain we’re talking about, you can make sure that gold backed cryptos could provide stellar performance without compromising security, thus keeping cryptos from being lost. As a result, the problems of using gold as an efficient currency finally gained a straightforward solution. With the use of the blockchain, gold-backed cryptos could efficiently run on lesser expenses and people and entities can easily store and move gold. People just have to learn how to invest in gold and silver, so they could start reaping the benefits of gold standard currencies through the blockchain. Of course, the choice of investing in gold mining companies and buying gold and some other traditional methods are still there, but the stablecoins or gold-backed cryptos are currently the best options. How to invest in gold and silver Knowing about the unreliable angle of fiat currencies could push you to look for ways on how to invest in gold and silver. Of course, you wouldn’t want to be badly affected with the collapse of fiat money that you use, and the best way to protect yourself is to have enough gold and silver to shield you from a bitter financial downfall. The first idea you would probably think about is to buy sufficient gold and silver, which you can keep in your own safe reserve. Say, you’re having problems with your fiat currency and you have enough gold and silver with you, you can simply sell them up for enough cash to cushion you. This could also be very beneficial when a gold standard currency becomes available for you since unlike commodities, you can easily trade your precious metals for it. Before you invest in silver or gold, however, you need to consider several things: Where are you going to store them? Do you have a secure vault in your home or somewhere more difficult to find by thieves? What will you use the gold for? Who will accept your gold as money? Can you afford to pay premiums and taxes? Don't you think you're better off with gold jewellery than gold bullion? If, in the end, of your due diligence you still want to pursue investing in physical gold, start searching for a reliable dealer who sells bullion and ingots at the right gold price. Then, choose from a range of bullion. Coins are the most common form of bullion that look like actual coins and are used as currency. There is a limited production of gold coins, however, making them rare and expensive. Rounds may look like coins but they lack circular value. The size of the round bullion, however, will impact its value inversely since it is based on precious metal content. So, the smaller the rounds are, the higher their premium rates over spot. Bars are popular among investors because of their low premium over spot, similar to rounds. They are also easier to store, stock, and organise. Best purchased in bulk. Another way to invest in gold or silver is to put your investment in gold mining companies. You just have to choose the best firm where you can trust your investment to, so you can have favourable returns or have your own precious metals. Aside from the traditional ways of investing, you can also to invest in stablecoins for significant perks. Stablecoins are cryptocurrencies that are backed by real assets, such as real currencies and precious metals. An example in the crypto space is the USDT coin. Although stablecoins backed by currencies are more popular, there are some that are backed by precious metals, like gold and silver. Thinking of cryptos running on the blockchain, this goes without saying that stablecoins let gold and silver run on the blockchain as well. As long as you’d invest in the best stablecoins available, you can expect to have gold and silver as an efficient currency without problems. You just have to look for the right stablecoin that could promise a good return on your investment, with Kinesis as one of the best options. After which, you’ll have a one-is-to-one ratio of crypto coin to real precious metal in a safe reserve. Not only that you can rely on it as a good investment, but you can also use your gold for regular transactions. And if the fiat currency you’re currently using falls, you can be sure that gold-backed stablecoins will stay afloat. Investing in precious metals with Kinesis money Looking to invest in gold? It will prove one of your best ideas yet. However, investing in stablecoins backed by precious metals is an even better move. This can help you a lot to have a secure investment and experience using gold and silver efficiently for regular daily transactions. All you need to do is look where to trust your investment to, so you can make sure of having enormous perks from it. This is exactly where Kinesis comes into play. Kinesis is a digital currency that is reliable, usable, and globally accessible. It is backed by gold and silver in the form of KAU and KAG respectively. For every currency you buy, the ratio is as follows: 1 gram of gold to your 1 KAU 10 grams of silver to your 1 KAG Investors will receive KAU and KAG upon investing, thus ensuring they own a certain amount of precious metals under their account. Investing in Kinesis can help you have all the gold and silver that you can have, which could be helpful especially when you use them on usual transactions. The 1:1 allocated gold and silver are insured and kept in third-party vaults that are completely independent of Kinesis. The vaults are audited after every 6 months by third-party holdings. With Kinesis as an investment: You have full and direct ownership of the legal title to the bullion Fully redeemable The bullion you own is sourced from refineries approved by ABX Gold bullion is stored in third-party vaults through ABX Compared with physical gold and silver and with cryptocurrency, Kinesis combines the best and eliminates the worst of both assets. Intrinsic Value Gold: Yes Kinesis: Yes Cryptocurrency: No Volatility Gold: Low Kinesis: Low Cryptocurrency: High Liquidity Gold: High Kinesis: High Cryptocurrency: Low Yields Gold: High Kinesis: High Cryptocurrency: Volatile Transaction Fees Gold: High Kinesis: Low Cryptocurrency: Low Through Kinesis money, you’re guaranteed a safe, high-yielding investment in precious metals. So how much are you planning to invest in? Invest in Kinesis gold coins To have cryptos backed by gold from Kinesis, you just have to communicate with them and express your interest. Next, indicate how much you want to invest, and you can open an account with your share of gold. You’ll receive a one-is-to-one ratio of 1 gm of gold to 1 KAU, which you can use to pay for products and services or use for crypto trading among others. You don’t have to worry because your gold is safe in a third-party vault, and you can easily get the physical precious metal any time you want. Invest in Kinesis silver coins Aside from gold, you can also invest in silver coins from Kinesis. This will come in the form of KAG, which is equal to 10 gms of silver for each 1 KAG. Express your interest to invest in silver with Kinesis and buy the silver-backed cryptocurrency. Just like the KAU, you can use the KAG for a variety of transactions. Whether you invest in KAU or KAG, you get the benefit of spending Kinesis currencies in the real world. Come May this year, the currencies will be minted and can be used as real money. Investors also have the option to apply for a Kinesis Debit Card that will enable cardholders to spend the Kinesis currencies they own where Visa or Mastercard is accepted. The gold and silver-based currencies are instantly converted to fiat and other cryptos. Unlike real-world credit cards, however, transactions fees are minimal and the transaction process is secure and fast. Set up Your eWallet Before you can buy Kinesis currencies, you must first have your Ethereum ERC20-compatible eWallet ready. Kinesis recommends using Metamask, the most popular eWallet available, but you do have the option to choose other ERC20-compliant eWallets. These include MyEtherWallet, Mist, Parity, imToken, Trust, and Cipher. Make sure to thoroughly research each option to find the best one for yourself. It is very important to verify the credibility, security, and functionality of a third-party eWallet, as Kinesis does not take any responsibility when you experience problems from using it. Just to be sure, you should not use a cryptocurrency exchange address or eWallet to apply for Kinesis KVT, as such an address/eWallet generally does not support ERC20 tokens. And KVT is only supported by an eWallet that is ERC20-compatible. Aside from knowing how to invest in Kinesis, check out other features that the platform provides, including tips on how to grow your stablecoin stocks, effectively increasing the amount of gold and silver in your account. Difference between physical and crypto gold Speaking of value, there is virtually no difference between physical gold and crypto gold. Both of them have proven to be helpful to investors and have been used as speculative investment and a safe-haven asset at certain points. But in certain aspects, physical and crypto gold have important differences from each other. These include something as basic as the very nature of the assets themselves. Physical gold is tangible, but crypto gold is digital. For more than 2,000 years, gold has been harnessed as a form of currency. And, as such, its supply increases as miners retrieve more of it from the ground. Once the precious metal is mined from the ground, it is mostly used to create precious goods, such as jewelry. But when it comes to investing in gold, you can purchase it in various forms. For example, it can come in bullion that you can buy. And, you can gain exposure to gold price movements through different financial instruments, like gold futures and exchange-traded funds. Frequently, physical gold has generated significant attention as a main safe-haven asset, in the same way that many investors look to real estate.. On the other hand, crypto gold is a digital currency. Like physical gold, it is also created through mining. The only difference is that the process is entirely electronic. In essence, crypto gold miners determine transactions and aggregate these transactions into blocks. In turn, these blocks make up the blockchain of the digital currency. Every time cryptocurrency miners complete a block, new crypto coins are released. Under the protocol that governs cryptocurrencies, new coins are released approximately about every 10 minutes. People will then use these crypto coins to engage in transactions or make investments online. In the world of cryptocurrency trading, crypto gold is backed by physical gold through Allocated Bullion Exchange. While both have certain differences, they are generally the same in a way that they are equally satisfying and fulfilling to possess. Cryptocurrencies that are backed by gold are completely different from other cryptocurrencies that suffer from the risky speculative investments. If you are thinking to invest in gold, you will be able to benefit significantly from it by first comparing and contrasting physical gold and crypto gold. It is important to be well-informed, after all. How to easily spend your crypto gold One of the most popular instruments used to make payments using money these days as an alternative to cash is the debit card. Compared to the credit card, the debit card is more widely used, as it is more convenient to use for everyday purchases. Now, Kinesis aims to take things a notch up by offering the Kinesis Debit Card. This unique type of debit card relies on digital tokens for any type of transaction that you will do. Whether you want to order that favourite steak in a restaurant or just want to enjoy coffee at Starbucks, you can use it for payment. In essence, the Kinesis Debit Card will enable you, as Kinesis currency holder, to spend your gold or silver-backed cryptocurrencies with ease anywhere that accepts Mastercard or Visa. Here are the perks that you will enjoy when you invest in gold with Kinesis and use this card: Instant conversion of KAU and KAG to fiat The Kinesis Debit Card allows you to make the instant conversion of KAU and KAG into fiat currency and spend it on any purchases that you will make anywhere in the world. Unlike other cryptocurrencies, Kinesis transactions will only take 2 to 3 seconds with their bespoke network. Add and spend multiple cryptocurrencies from your eWallet The payment process using the Kinesis Debit Card is done dynamically through the connection between the card and mobile eWallet, where you store your crypto coins. Fast and secure transactions with minimal fees You can enjoy more savings from using the Kinesis Debit card. Unlike other debit and credit cards, moving funds to and from your mobile eWallet into and out checking or savings account will only cost $1.00 per transaction. Moving money from your eWallet to another mobile wallet is free. There is even no merchant processing fees. As for transferring from Kinesis to mobile eWallet or the debit card, it will only cost you 1% of the transaction amount. So, are you wondering how your money will be deducted from your account? Well, the process is made possible on the Kinesis Financial Network (KFN), which is basically a mobile banking system created by Kinesis to connect to Mastercard and Visa. With the Kinesis Debit Card, gold and silver are made available in everyday transactions once again. Using eWallet for the Kinesis Velocity Token With your eWallet now set up, you are able to purchase Kinesis Velocity Token (KVT) using either Ether or Fiat. If you choose the latter, your transaction is made via Fiat Transfer that, once completed, will be followed by KVT transfer into your eWallet. You should not use a cryptocurrency exchange address or eWallet to apply for Kinesis KVT, as such an address/eWallet generally does not support ERC20 tokens. And, as previously implied, KVT is only supported by an eWallet that is ERC20-compatible. Kinesis will only release up to 300,000 tokens, so you should buy them while they’re still available. Experience the gold standard in digital currency without the security and volatility concerns.  

rafal szulczewski
rafal szulczewski

22/01/2019

When the Dollar Crashes, the Gold Standard Will Emerge

All currencies used to be backed by the value of gold - the Gold Standard. Then, economic mechanisms developed over time to a point where a handful of people had the means to conjure trillions of dollars, euro, renminbi, and pounds out of thin air. For example, in the 1971, brutal Ugandan dictator Idi Amin raised military spending by 500%, which spiked inflation 700%. When an ex-finance minister warned that Uganda was headed towards bankruptcy because of bloated military spending, Amins answer was "Print more money." Amin doubled the money supply between 1976 and 1978. On the ground, gasoline cost $39 per gallon and sugar $5 a pound, with the monthly minimum wage set at $30. What was once the dastardly action of a brutal African dictator is now mainstream. In the United States, Federal governments issue debt to pay for their expenses, and then print more dollars to pay off trillions of debts. Debt is at the heart of the scheme: In the US, banking systems were deregulated during former President Bill Clinton's term in the 1990s, which heightened debt's influence over the country's economy. Since then, European vassals followed on through the early 2000s. Such deregulation has also given more power to banks by simply handing out more debts to governments, companies, and individuals. As a result, around 97% of all the money circulating in the West comes from banks through debts and loans. With that said, it is important to note that banks make a huge portion of their profit from interests that are generated from loans. This means that banks are basically earning and generating more cash that does not offer real value to the economy. Now, as large amounts of this money are in circulation, one could easily see a chaotic problem when banks would start recalling outstanding liabilities or debts. As history shows, this economic collapse timeline has begun building up since the end of World War II, reached its peak during subprime manufacturing crisis from 2007-2009, and was expected to cause a global economic crisis that could collapse around 2016 or 2017. Such an event could have left a huge economic impact on a global scale, causing poverty, famine, and even death among many populations. The ruling elite class, on the other hand, would still remain on top, pushing to begin the monetary cycle again from square one. Now, allowing wealthy people to be in control of everything and keeping the public uninformed can cause the cycle to repeat continuously. Why Money Has Value Money can maintain its essential functions only if people have a high level of trust in the monetary unit they are using as a stable store of value. In the event that this trust is lost, the people would give up using the monetary unit, either suddenly or gradually, in favor of something else. Based on historical records, "bad" money would drive "good" money out of circulation, especially when faith in its stability is lost. Though it might still be used in most transactions, especially when it is the mandated legal tender, it will no longer be trusted as a store of value. In this case, people will then hoard the "good" money as the superior store of value until the "bad" money is finally totally abandoned. Then, a return to using the "good" money entirely becomes possible. Take a look at this: People are now using traditional money. Then, cryptocurrencies backed by gold are rising in popularity. Jumping on the bandwagon, some people are then investing in gold coins and using cryptocurrencies for their online transactions. While it does not seem that cryptocurrencies will entirely replace the traditional money that we are using today, time might come that they will. This monetary cycle, which is good-bad-good, has been happening throughout history. What Is the Gold Standard? The Gold Standard is a system where nominal exchange rates between participating countries are fixed with the value of gold. So, if a gold ounce is valued at 20 US dollars and 10 British pounds, then 2 US dollars should be exchanged for 1 British pound, as a fixed exchange rate. Under the Bretton Woods system, the US was supposedly following a gold standard in implementing its monetary policy, while the rest of the world set their exchange rates in US dollars. While it was impossible for the ordinary people to redeem their US dollars or other money into gold, the central banks can do it, theoretically speaking. Also, countries can participate in the Gold Standard for a time, leave it, and return it, just as it is possible for them to fix their exchange rates against other currencies. Take what Hong Kong did with the US dollar, for example: Like what other emerging market countries did during the 1990s and 2000s, the country had fixed exchange rates with the US dollar, but then left it during the Asian financial crisis. The fixed exchange rate economic system implies that governments do not have the power to completely set domestic interest rates. This is what is known as the "impossible trinity" in economics. With such, one cannot have free capital movement between the country and other countries, fixed foreign exchange rates, and independent monetary policies at the same time. During the Gold Standard era, which covers the early 20th century, this type of system meant that monetary policies were set according to international capital and trade flows. It also entailed that during a crisis where a country is having a capital flight or a current account deficit where the central bank is not also able to cut interest rates to fight the crisis, interest rates are forcibly raised to fight the capital flight, worsening the recession. However, this was not an issue among the developed countries in the early 20th century. But when active monetary policies were needed, there were great incentives to leave the Gold Standard. This happened during World War I: The costs of war were huge and could not be financed solely by the command economy and debt issuance. As a result, some seigniorage, where governments issue currencies, happened. This was serious in many countries, especially in Russia as it led to inflation. For other countries, it increased their debts more because of more developed economies, such as the UK and France. As it could not be reconciled with the Gold Standard, a passive monetary policy was needed, though it is not an active one. Then comes the Bretton Woods dollar-gold system, where the US dollar was convertible into gold and the rest of the world pegged their currencies to the US currency. Now, countries were able to periodically adjust that peg to gain a comparative advantage, helping with their exports. The system was especially helpful to European countries to help in their recovery from the devastation of World War II. The system worked and was relatively stable from 1945 to about 1965. What became the ultimate doom of the Bretton Woods system was the growing lack of faith in the willingness of the US to actually convert their dollars into gold, which resulted in large government deficits under the leadership of President Lyndon B. Johnson. He paid for both the mounting costs of Vietnam and his Great Society initiatives. In a monetary system that is backed by gold, government deficits must be paid for by also borrowing such precious metal. Obviously, it was expensive. And, as deficits grew, the world gradually lost faith that the country was actually willing to pay for everything with gold. Unlike switching to a non-gold based dollar, inflation would just eat away the real debt burden, which is politically more flexible and practically much cheaper. This loss of faith further grew as the market price of gold diverged from the official US conversion rate. Hypothetically, a country would be able to convert its dollars into gold and then sell the gold for dollars, making a profit in the process. However, all fixed-rate commodity-backed systems would be put in danger with such a divergence taking place. And, as international trade grew during the post-war period, tensions between the market rates and fixed conversion rates also grew. So, as the willingness to convert dollars into gold grew, other central banks eventually showed interest in converting their US dollar holdings into physical gold before America's stock of gold depleted. The first country to request such a conversion was France, but other countries were privately showing the same interest. Like any other bank, central banks are obliged not to lose money. Considering the situation, they were considered to be only acting in their best interests. When France officially requested such a conversion, it signalled a clear sign that the dollar-gold standard will fail. So, President Richard Nixon, under his leadership, made one of the most shocking economic measures taken by the US government in history—the unilateral cancellation of direct international convertibility of the US dollar to gold. The decision was based on the notion that there would have been no point in converting dollars into gold for France, as all other dollar holders would have followed. As a result, the US would have shipped all of its gold to other countries, which would also end up the country suspending such conversion anyway. As a result, it was scrapped. Why did America abandon the gold standard? In the early 1930s, the US government faced a huge problem of the Great Depression where they were left with little influence over the economy, resulting in large rates of unemployment and severe deflation. This pushed the US and other government entities to raise interest rates to prevent draining the gold reserve, as it could dissuade people from cashing in their deposits. Problem is, such move made it more difficult for people and businesses to borrow cash. To solve such dilemma, President Franklin D. Roosevelt detached dollars from the value of gold, thus helping the government to release more money into the economy with favorable interest rates. On March 3, 1933, the President closed the banks for 10 days. When they were reopened, all of the gold has been turned in to the Federal Reserve. This kept people from redeeming their dollars for gold. A month and 2 days after the banks were closed, all Americans were ordered by the President to turn in their gold certificates and coins and have them exchanged for paper currency. Gold bullions, coins, and certificates were given a set price of $20.67 per ounce, and they must be all returned by May 1, 1933. 9 days later, the gold reserves at Fort Knox were created through the $300 million in gold coins and $470 million in gold certificates that were delivered to the Federal Reserve. According to the author of “Lords of Finance” book Liaquat Ahamed, “Most economists nowadays agree that the separation from gold makes around 90% of the reasons for US’ success out of the Great Depression.” Until 1971, USA allowed other countries’ government entities to exchange dollars for gold. However, President Richard Nixon stopped such practices to prevent foreigners from digging through the American gold reserve. Gold's set price increased to $35 per ounce in 1934 and continued until 1971. On August 15, 1971, President Nixon announced that the US will no longer convert dollars to gold, fixed price or not. This marked the end of the gold standard. It wasn't until 1974 when Americans are allowed to own gold bullion again after President Ford signed the legislation. Despite the US abandoning the gold standard, gold remains an asset value, helping protect investor's assets. Benefits of a gold standard The events mentioned earlier have turned the dollar into pure fiat money, or cash without any valuable assets backing it. Thing is, the history has tons of examples that prove fiat money almost always turns back to its base value of zero. Like the Denarius of Ancient Rome, for instance, in 50 A.D. denarius coins were made of pure silver. Nonetheless, Roman emperors have reduced the silver content of denarius through time, until it only contains around 0.05% of the precious metal. After the collapse of Rome, the low value of denarius coins made them unacceptable for various goods and services, thus making them basically worthless. It also happened to the old currencies of China, France, Germany and other countries throughout history. The symptoms of fiat money losing its value is already observed with dollars as well. This posed a serious threat towards dollar and other currencies pegging on it that couldn’t be ignored. This is where investing in gold coins comes as an important consideration. With a gold standard: A money's value is backed by a fixed asset Provides the economy with a stabilising and self-regulating effect Money can be printed as much as the same amount of gold that the government has Discourages inflation, debt, and government budget deficits More productive nations earn more gold when they export, for example, and boost investments and reserves Unfortunately, countries without any or has little supply of gold are at a competitive disadvantage. But even those that do like America may not want to return to a gold standard because of its negative impact on the economy. For instance, the US government will no longer have the complete freedom to manage the economy, constricting its ability to do so. In times of inflation, the Fed can't reduce the supply of money by raising interest rates. But gold is in debate again. The coming gold standard There are many available write-ups talking about the rise of gold value, and how it would continue through the years. It's even expected to go beyond the value of fiat currency units, as the latter loses its perceived value. Such observable factors could tell a lot about the new gold standard coming later on, which people definitely need to prepare for. This is especially true that such monetary system significantly varies from the current fiat currencies the world commonly has. The gold standard will not merely change the physical money, but will also affect finance on a large scale, which includes banking and businesses. It could be largely beneficial for some countries, industries, and markets, but could severely harm others as well. From there, one could see that asset allocations and investment strategies must be modified to fit in the new system, such as new methods of investing in gold coins. But it's only a matter of time before a new global gold standard will arrive. Everyone should brace for a possible rough transition and their stars if things happen smoothly. Investors and businesses best prepare for the coming of the gold standard, finding ways to protect their wealth and to flourish through the new monetary system. Because failure to prepare could result in assets lost and generation of hard work down the drain. There’s a huge risk accompanying the arrival of the new gold standard, and it would leave people with no choice than to throw zero-value fiat currencies as a thing of the past. It would be best for people to do practical preparations to survive the transition and through the new monetary system, especially because the public couldn’t rely much on government entities for help. After all, government officials will probably dilute the system for their advantage, instead of providing sufficient assistance for the people in their countries. Big business using blockchain Tracing back, the original Bitcoin paper was published by Satoshi Nakamoto in 2008, and it took around a year for the first Bitcoin to be made. Subsequently, it took more years for the technology community to conceptualise the blockchain system, much more its actual completion. Nonetheless, Bitcoin and its related concepts broke out after media organisations like Newsweek and New York Times made their investigative reports in early 2014 about the huge potentials of the said cryptocurrency. In just a year, the largest central banks all over the world, (which includes the Bank of England), began their research and published papers on the potentials of blockchain technology. But the paper is focused more on the system that runs the Bitcoin, instead of highlighting the crypto itself. After which, it has slowly become common knowledge that the blockchain technology could severely affect various transactions of finance and commerce worldwide, which include various financial technologies. Due to this, start-up businesses and banks have tried to find ways to cope up with the innovation brought by blockchain technology. The goal is to incorporate blockchain throughout various departments or divisions and to streamline different processes with it. Aside from merely coping up with the new technology, businesses and banks also aim to provide efficiency with their operations, especially for the convenience of clients, customers, and partners. Kinesis benefits Knowing all the possibilities of an economic catastrophe in the not-so-far future, you should definitely find the best ways for you to prepare yourself for the coming of the gold standard monetary system. Of course, if it’s all about the circulation of real gold back into the economy, the best way to prepare is to invest in gold coins before the big economic crash. This is where Kinesis comes in. Kinesis is one of the best ways for you to survive the possibility of a huge economic meltdown because of the new gold standard and could help you flourish through and after the transition. It is a cryptocurrency backed by real gold, running on blockchain for optimal benefits like: You can easily buy gold online through its platform, allowing you to own a certain amount of real gold for each crypto coin you have. Your gold is safe in the Kinesis reserve, giving you the assurance of having enough “gold backed coins” through and after the transition phase of the new gold standard. You don’t have to worry about fiat currencies running out of value since you already have your own currencies backed by gold in the Kinesis reserve. Crypto coins of Kinesis runs on the blockchain, which basically means it’s on a reliable and safe platform for virtual transactions and storage. You can use crypto coins of Kinesis on various transactions right away. If you have real gold in the Kinesis reserve, you can claim your gold anytime you want. These are just a few of the benefits that Kinesis can provide you with, before, during, and after the global economic crash. It is the ultimate stablecoin because it is backed 1:1 by physical gold and silver, depending on whether you have KAU or KAG, respectively. Gold is stored securely on third-party vaults, eliminating counterparty risks. Check out Kinesis.money for more info on how to buy gold from Kinesis and what more you can do with this digital currency.

rafal szulczewski
rafal szulczewski

03/01/2019

Commodities and Supply Chains in the Digital Era

When the internet was invented, only those that were designing the architecture behind it could truly envision the large scale effect that the internet would have on the world. Today the internet is as ubiquitous as any other technology, and has been proven to enhance almost every industry in the world. One might be able to look at the timeline of the internet and deduce that blockchain technology is currently on the same trajectory. Blockchain has a lot of promise for a technology that has been around for barely a decade. Programmers and data scientists can see the advantages that blockchain could bring the world if the technology is properly developed and scaled. These advantages apply to every industry, be it finance, agriculture, or manufacturing. To understand blockchain on a simplistic level, picture it as a massive cryptographic ledger that can be accessed from anywhere in the world, integrated into other technology, added to, but conversely cannot be changed in any way. This is the true promise of the blockchain. An immutable ledger, that no one central party controls, and cannot be tampered with or censored. When you start to think about the many industries this groundbreaking technology can be applied to, you begin to see how truly revolutionary this technology is. The Fintech industry is already seeing a massive overhaul with the adoption of blockchain. Worldwide payment networks are being developed that will eventually replace traditional banking applications. This is one of the first and most practical use cases that the forefathers of this technology envisioned. However, there are other industries that are far behind in the adoption of new technologies and need a major overhaul. The manufacturing and shipping industries are in desperate need of an update. Supply chains that move commodities around the world are relying on written documents and manual checking to complete these supply routes. This is the situation with the flow of commodities from all over the world. These industries have very much stayed the same in principle for decades, even centuries to some degree. Blockchain is currently being tested and applied to these industries, and the resulting changes could be enormous. Supply chain Management The import export business is an industry that globally accounts for trillions of dollars every year. Since ancient times, this industry has made or broken countless civilizations. Many of the world’s wealthiest nations and individuals are involved heavily in this sector. Interestingly enough, this industry is one of the few today that hasn’t changed much since the dawn of man. Certain goods and commodities have always been prevalent in one country or region and absent in others. Common examples are rubber and coffee in South American countries, or spices from India. For reasons regarding the climate or ecosystem of plants, these goods have mostly remained exclusive to these countries. This is the foundational principle of international commerce, manufacturing and then shipping goods from one country and selling in another. Many nations across the globe have most of their income related to import and exporting. With the importance of this industry in mind, it is quite baffling to consider that in the age of the technology available to us, this industry still mostly relies on manpower, written documents, stamping orders and other systems of manual checks and procedures. Its estimated that an astounding 90% of all commerce relies on freighter ships and shipping containers. This is because while we all live online looking at digital ads and product reviews, we are very much still dealing with physical, heavy, and cumbersome products. From handbags to cars, everything is manufactured somewhere, then shipped off on ship to be sold elsewhere. The tracking of these goods and commodities is quite frankly, no insignificant task. This is what we refer to as supply chain management. This is the process of transporting and tracking goods from the point of origin to the point of commerce or consumption. Supply chain management is a 15 billion dollar a year industry that is continuously growing. Many goods every year are lost or stolen, confused with someone else’s order or any other possibility. Then there is the question of authentic goods. Replica factories specialize in making exact 1 to 1 copies of designer goods and electronics, for a much lower cost then what your business offers. This is a complicated issue, but blockchain technology promises to provide a solution to the many problems companies face. Problems with Supply Chains The supply chains that exist today are incredibly complex. After all, we are discussing commodities from all parts of the globe. Electronics from China or Japan are sold in as far away regions as the USA or Europe. Depending on the product and its final destination, the chain can span over dozens of countries, with many stops in between, numerous invoices and inventory sheets, and lots more when you consider all the customs and international laws and regulations that must be accounted for. There are severe issues with the transparency between parties, and many aspects of theses supply chains can be automated and optimized to make them more efficient. Blockchain is a publicly available ledger that openly shows all data that is recorded on it. This can certainly help with the many transparency issues in current supply chain models. The lack of transparency that current exists causes real issues for merchants and consumers in several ways. Shipments are sometimes lost or held up without the knowledge of either the shipping or receiving party. These types of hold ups can be for many reasons, but often times there are international customs issues. One of the biggest overall issues however, is that consumers do not know the true value of products or the manufacturing conditions of the goods they are purchasing. This has caused severe humanitarian concerns for decades. In just one example, manufacturing has been leaving USA and European soil for foreign Asian markets since the early 1900’s. Major western corporations establish factories abroad to both bypass health and labor laws in their home countries, but also to pay much lower wages to employees. When people purchase “fair trade” products they expect that these commodities were sourced and sold at a certain standard for the people that produce them. Unfortunately, when these producers are on another continent, it is not easy to guarantee the conditions that surround these products. The same goes for organic or charity based products. The fair value of goods is not widely known either. There is a whole market surrounding price discovery for commodities trading worldwide. The lack of transparency makes finding the true manufacturing costs of goods impossible. It’s also similarly very difficult to verify the materials used, the origins of these materials, or to investigate supply lines. It is often times near impossible to prosecute parties or to prove guilt in cases of fraud. The system is built in a way that information is withheld on a need to know basis which in a way is an understandable destination that we have reached as a capitalist society that rewards ingenuity and progress. Manufacturers and corporations rightfully protect their own secrets and business edge from the competition, regardless if they use bad practices or not. Integrating Blockchain with Supply Chains Though there are many different versions of blockchains, most share core similarities. When it comes to adoption of the technology, it is up to the individual enterprise to decide whether they should adopt an existing blockchain network or develop their own. Not all blockchain networks need to have a native token or currency to operate, and not all need miner support. Blockchain technology can be adopted on its own and this is an important distinction from blockchains like Bitcoin or other major cryptocurrencies. The strength of blockchain ledgers like Bitcoin comes from how publicly available and widespread they are. The core principles behind Bitcoin and cryptocurrencies are immutability, censorship resistance, not owned by any central party, and highly secure. Blockchain technology offers numerous solutions to every problem or shortcoming in the supply chain and shipping industries. First and foremost, payment, billing, and the transfer of money are the most clear and direct use cases for this new technology. Blockchain allows anyone in the world to transfer funds without any median party controlling the transaction. Each transaction is a direct peer to peer exchange, that is settled in a near instant manner. There is no waiting period of several days for a payment to clear, and the transaction is live on the blockchain to check immediately upon leaving the associated wallet. For business owners dealing with processing payments to many worldwide partners, there are obvious advantages to using blockchain for payments. However, this would require using cryptocurrency which means transacting in something other than your native currency. For all matters regarding contractual obligations, there is a new development in the cryptocurrency world. Smart Contracts are new types of applications that are made possible with cryptocurrency and the blockchain. These contracts are written in code and are self executing when certain predetermined conditions are met. Once established, these smart contracts cannot be changed in most cases. The funds mentioned in the smart contracts are held in a central wallet, only to be released when the conditions are met. An example of these conditions in this case would be, when the shipment is scanned in by the receiving party and all goods are accounted for. This means that essentially, you can use these contracts to replace traditional lawyer drawn contracts and escrow services. In fact, as these contracts exist outside any jurisdiction or country, they are superior in the sense that there is no need to go through overseas legal boundaries. Prosecuting parties in foreign countries is no easy affair. These smart contracts allow you to have a legal agreement that both parties have to uphold or forever lose their funds. The possibilities are astounding to consider. Drawbacks and Challenges Enterprises all over the world are looking at blockchain technology and wondering how they can harness this technology for the benefits while mitigating the risks. The risks involved are precisely why the adoption rate has been slow as far as the technology is concerned. Multi million dollar corporations do not like to take chances that could potentially cost them millions. This is why the US military and banking centers are still running windows XP. When important systems or millions of dollars are at stake, it’s hard to convince leaders to look ahead and see the benefits of adopting new technologies. That being said, there’s no denying that blockchain technology comes with certain risks for certain industries. The ledgers and networks themselves are heralded to be very secure, but there are other aspects to keep in mind. First, the ecosystem behind cryptocurrencies is still very young. It will take time to build up the elaborate and extensive networks that can handle the volume of transactions that industries across the world need. Visa processes 2 thousand transactions per second on average and is capable of 50,000 or more. Bitcoin, the industry leader in cryptocurrency, processes a paltry amount of less than 10 per second. On that note, the Bitcoin network in particular has been criticized for its poor handling of the scaling debate. This is just one example for the different cryptocurrencies but it is an alarming one. Next, let’s consider the potential drawbacks of using cryptocurrency for transactions around the world. First and foremost, there is currently no way to do transaction pullbacks or recalls like in a traditional banking account. This is an intentional feature that is very important to the system. Once sent, transactions are out of your control, and if sent to the wrong address, they are potentially gone forever. This is not a feature that is easy for business owners to accept. Also, to consider using Bitcoin or other major cryptocurrencies for transactions, you have to account for the expected and violent volatility. Not many currencies in the world regularly have the peaks and valleys seen in Bitcoin over the last decade. As far as the market looks now, this doesn’t seem to be something that will change anytime soon. This would almost certainly prevent business owners from holding these cryptocurrencies. Instead they would only purchase them right before they need to make a transaction. Another important note is that experts in setting up and maintaining these systems are few and far between. It won’t be an easy feat to find someone qualified to join your organization as an in-house professional. Therefore almost all duties will be performed by contracted specialists. Many organizations would almost certainly prefer to have experts work for them directly, but sadly this field will need some time to catch up to the growing demand much like computer security professionals are always in high demand. Blockchain Used in Real Business Applications Despite these challenges, blockchain is already being utilized in several different businesses worldwide. Many massive shipping organization have begun experimenting to try and gain an edge over competitors. There are also several independent companies that have formed around this new budding technology. They plan to make specialized systems and networks that can be integrated with existing supply lines. IBM IBM was once a monstrous force in computers and technology. In recent years they have had trouble competing with other giants of technology like Apple or Google. Though they have seen ups and downs throughout the years, it seems IBM is betting big on the future of blockchain and cryptocurrencies. Throughout 2017 and 2018, IBM has made big announcements regarding partnerships with various cryptocurrency startups. The computer titan has made their way into the shipping and supply chain management industry. Right now, companies around the world are utilizing IBM’s blockchain technology to manage every step of the traditional supply chain system. IBM’s blockchain solutions help to track food shipments from anywhere in the world, with accurate location tracking in seconds instead of days. Shipments are traced accurately and are no longer lost among container ships. International payments are streamlined and optimized, with instant settlement systems. Payments overseas previously have taken days or weeks to clear, but now billing and payments are quick and efficient. The food supply chain industry is one of the most important that IBM is tackling with this new blockchain initiative. This industry is in desperate need of an overhaul to protect consumers and producers alike. The lack of transparency in this industry has caused problems for most of history. There are many labels that consumers pay extra for like organic produce or “free range” meat. There is no certainty that these goods match the quality that is expected, or that they come from sustainable producers worldwide. IBM’s blockchain tracks these food products every step of the way from the farm to the processor, the distributer, and finally the retailer. The information and data needed is meticulously recorded and verified at all times. This helps minimize waste as well, with the accurate amounts being transported, stored and sold are recorded and the data is processed by data engineers to map out and review. There are no blind spots in this supply chain and IBM is taking the steps to enhance supply chain management with blockchain technology. Blockshipping Blockshipping is a Danish startup company that is taking aim at the mismanagement behind global container shipping. Like many entrepreneurs, this company is looking at the supply chain management industry and thinking of how to make it a better process. Interestingly enough, Blockshipping is creating a registry for freight containers, the world’s first in fact. This registry is blockchain based and will provide real time information for 27 million containers worldwide. This in turn has the potential to save the shipping industry billions of dollars every year. Container based shipping accounts for a massive 60% of all seaborne shipping, which is 90% of all international shipping worldwide. Just like commercial airplanes want a full flight to maximize profit for the airlines company, freighter ships want a full load to maximize the amount of profit coming in versus how much fuel and payroll hours they spend. Making sure that each freighter is at max capacity is a process similar to a real life version of Tetris and is a multi million dollar industry by itself. There are several other common issues that Blockshipping hopes to solve. These are numerous and range from overcapacity and under-capacity, to security problems, environmental regulations and low freight rates for the shipper. This is an industry that has not changed much in the last century and is need of an overhaul. Blockshipping is introducing what they call a Global Shared Container Platform or GSCP. This is a real time registry that tracks every shipping container in the world. The primary goal of this registry is to provide real time data that shows shippers where their containers are at any moment, through the use of smart sensors and data points among the shipping lines. This system will also include smart contract based transactions between international companies that can transact with the carriers, ports, and customs handling. Blockshipping estimates that their global registry can save the shipping industry over 5 billion every year while reducing environmental impact through wasted fuel and co2 emissions. Tracking gold It’s not just shipping and freighter companies that are rushing to adopt blockchain. The individual industries surrounding almost every commodity worldwide have taken notice and are testing out the technology. This includes everything from gold and diamonds, to oil, fruit, handmade goods, wine and more. International trade and everything it envelops will be affected by blockchain. Gold is one of the most historically important and ubiquitous stores of value the world has ever known. It’s unfathomable that there was ever a time that this scarce metal was not important to mankind and it is hard to imagine a world without it. This is another example of a commodity that has supply routes that are hard to follow, as it is sourced through various mines across the world in numerous countries. The conditions surrounding these mines, and its workers are at large completely unknown to the general public and people who purchase it. The supply chain for gold is an estimated 200 billion dollar annual market. London Bullion Market Association The London Bullion Market Association is currently testing ideas submitted by blockchain professionals to determine how the gold supply chains can be reworked. The association intends to track the gold from where it is sourced in mines to the end point of the purchaser. Additionally, the organization hopes to gain a better understanding of how the gold is eventually used, from investments to jewelry, to industrial uses. Having knowledge of the full scale of implementation for gold will allow the LBMA to further serve its customers better. Emergent Technology Holdings The US based technology and finance company, Emergent Technology Holdings, is also attempting to track the supply lines of gold in what they consider a new approach to the concept. Emergent is focused on tracking the source of gold and ensuring that it is environmentally and ethically sourced. Starting from the mining source, the gold will be tracked from where it is harvested all the way to the distributor and to the final customer or destination. They plan to utilize digital sensors placed in tamper proof containers that make gold shipments scannable, ultimately providing a way to reliably follow the gold supply trails. Emergent Technology Holdings has plans to offer their own cryptocurrency tokens as well. They have partnered with the NYSE listed organization called Yanma Gold to create their own “G-coins” which will be backed by grams of gold. Each coin is a digital representation of ownership of physical gold that can be used for trading or investment. They hope to provide new liquidity to the gold market. Kinesis Kinesis is a full monetary ecosystem that plans to provide two cryptocurrencies backed directly by gold and silver. The KAU coin will be backed on a 1:1 basis by a gram of gold and their KAG coin will be backed by silver. Kinesis will use a minting process that replaces mining on other blockchains. This system enables users of the Kinesis platform to directly create their own coins by submitting cash or digital currencies at one of Kinesis’ own digital exchanges. Kinesis is forked from the Stellar platform, which is renowned for its speed and efficiency of transactions. There is numerous aspects to the Kinesis platform including digital wallets, several dedicated exchanges, shares of the fees that go to token holders and referral benefits. The father company of this new cryptocurrency system is the Allocated Bullion Exchange or ABX, a longstanding and reputable figure in the precious metals markets. This company is well established and plans to provide a multitude of features that have been designed with the consumer in mind. Tracking Oil The oil industry is one of immense international importance. It is without question one of the most important commodities to the function of the societies we all live in. Oil and gas have a very extensive and sordid history. Some of the most war torn regions in the world also happen to be some of the biggest exporters of oil in the world. This foreshadows the tragic history regarding international conflicts that have been fought over the control of this natural resource. With this in mind, it's easy to imagine that the supply lines for oil are shadowy and very hard to track. Several groups and professionals in oil and natural gas are considering different ways to utilize blockchain technology to track supply lines. BTL group is a blockchain based company that recently demonstrated a pilot program for several industry heads. The findings of the pilot report that overall costs regarding tracking oil can be reduced by up to 40%. The group plans to track many different commodities using smart contracts. Another company that is focusing on this task is the group Petrobloq. This is a company focusing specifically on the supply lines of oil from regions like the middle east and south america. Petrobloq plans to work directly with refineries and producers to establish a connection that can be adequately tracked. The group claims that they will be able to save suppliers millions in costs related to the shipping process. Petro Venezuela is a country that is heavily reliant on oil as their most important economic driver and exported resource. The economy of Venezuela has absolutely plummeted in the last decade leaving its native currency, the Bolivar, as worthless as the paper it’s printed on. With these desperate conditions mounting, the Venezuelan government has announced they are taking a bold direction with their economy. For the first time in history, a country's’ national currency will be a digital currency. Venezuela will establish a cryptocurrency called the Petro that will be backed by barrels of oil in reserve. This essentially means that the economy will be based solely on the value of oil, a commodity that trades worldwide. While this move has drawn the appropriate skepticism, no one can be sure what is the true motivation regarding this startling announcement and how this will all play out. All things considered, this is a historic moment for oil, cryptocurrency and Venezuela. Conclusion Life changing technology comes in cycles and ushers the world into the next economic era. The industrial revolution was a period of time that saw major transformations in manufacturing processes and brought new prosperity to the world. Centuries from now, it will be apparent that the internet was one of the most important inventions in the history of mankind. Blockchain technology is an expansion on that concept because without the internet, blockchain and the way we share knowledge and connect with others could not be possible. The possibilities that blockchain bring are just now being discovered. Blockchain truly stands to replace or enhance numerous industries around the world. With the addition of decentralized applications, blockchain can be integrated with the internet and existing systems or electronic processes to enable new functionality. Many industries will end up being fully replaced by blockchain while many will just be enhanced and optimized. Its unfathomable how many businesses and industries still rely on notes or paper documents and the use of traditional postal mail services to send these documents. Supply chain management is an obvious industry, but there are many more. Government and bureaucratic services are looking into utilizing blockchain, as are fortune 500 companies. When you tell a CEO that blockchain can potentially save you billions, they tend to listen. The future is certainly a mystery to everyone today, but many successful individuals learn to look ahead at the changing landscape. The internet is not in its finished form today. It is merely a version that will be updated to the next version down the line and blockchain could be the key to the next evolutionary step. Blockchain technology is more than cryptocurrencies, and it will soon be as well known in technology as IP addresses or email protocols.

rafal szulczewski
rafal szulczewski

17/12/2018

Crypto in The Middle East is On The Rise

Cryptocurrencies and the market surrounding these digital assets has been growing since it was first created in 2009. Certain countries have long since been a part of this burgeoning market, like asian markets in China, Korea and Japan, as well as many European and western countries. In 2017, the media coverage of these crypto markets exploded, with non stop financial coverage from popular investing programs as well as mainstream news programs. Adoption in the Middle East Although this technology has taken off worldwide, adoption in the Middle East thus far has been very lackluster. Even though there is billions in investment capital groups located in areas like Dubai or Saudi Arabia, it seems that Muslim communities worldwide were apprehensive about joining in this new sector. This absence is due to religious and societal concerns regarding the nature of these cryptocurrencies. This year seemed to mark a new change in attitude in the Middle East. There are many new developments on the way that show that the Middle East and worldwide Muslim communities are preparing to start adopting and building with this new technology. The Halal vs Haram Debate The uncertainty of the status of cryptocurrencies has caused many in the muslim communities to steer away from them for most of the early days. The intangible nature of crypto has lead most leaders in major muslim communities to call crypto “haram” or harmful. To understand this conclusion we need to take an unbiased look at cryptocurrencies and the surrounding markets. Because of the immense volatility that is omnipresent in crypto, many leaders of the Muslim faith have considered crypto to be gambling, no different that Las Vegas casinos. The intangible properties also make it a speculative instrument, because it is not something that is physically real or backed by anything. If Bitcoin and other major cryptocurrencies were tied to physical commodities, as some stablecoins are, this principle could be refuted on some level. This would also tame the wild volatility of the market. This ruling on the status of cryptocurrency has left the Middle East on the sidelines as other major markets worldwide have started adopting this new technology. This all seemed to start changing in early 2018. In April of this year, the Turkish Directorate of Religious Affairs declared that buying and selling virtual currencies is not compatible with Shariah law, but it is acceptable to still use this as a payment network. This means to use cryptocurrencies as a speculative investment is prohibited, but to use this growing technology as a payment transfer network is acceptable. Bitcoin had a major rebound around this time, leaving many to suggest that this was due to the huge influx of new adopters in major muslim communities worldwide. Although it couldn’t be stated for certain if this recent ruling on the status of crypto was indeed the cause of the rebound, there are certainly huge leaps being made in the Middle East towards crypto adoption. Huge Markets in the Middle East The interest in cryptocurrencies has certainly risen in the Middle East and major Muslim communities worldwide. There are reportedly 1.6 billion Muslims worldwide, making up a huge fraction of the population. Many experts believe that this part of the population can be a huge driving force in the potential of this new technology that rivals the asian communities like Japan and Korea. While there are numerous potential benefits for this new technology, there are particularly three sectors in the Middle East that could see the biggest improvement from adopting crypto. E-commerce Expansion Cryptocurrencies are perfect for integration with online shopping and to replace older systems with numerous faults like Paypal. E-commerce will continue being a massive growing sector year after year, continuously replacing traditional brick and mortar venues. While many online transactions in the Middle East are utilizing cash on delivery types of exchanges, crypto can make this a truly trustless system with direct and irreversible transactions, meaning there cannot be any fraud or pullbacks. Unfortunately for crypto, many merchants throughout 2017 withdrew their support for major cryptocurrencies like Bitcoin. This was due the unforeseeable rise in transaction times and fees. Better payment networks need to be established with stablecoins and other alternatives. Banking Solutions Many people in Arab regions are without any sort of banking account. Even without a bank account, many people have smart phones that can facilitate online use anywhere. This is the perfect opportunity for cryptocurrencies. Payment networks based on crypto are being made right now throughout the Middle East and worldwide that will allow for international and local exchanges. Financial Transfers The Middle East is considered the largest market for incoming and outgoing financial transfers. Many people in these regions have family living abroad which send money back home, or the many asian workers here that send money back to their families. This is seemingly a perfect use case for crypto as it can supply low cost instant transactions to anyone in the world without a censoring party in-between. The Rise of Tangible Crypto Assets Most cryptocurrency experts agree that crypto backed by real world assets is an absolute necessity for real world mass adoption. Investors might disagree with this proposition because it will help to tame the wild volatility that has made crypto valuable from a trading perspective. However, 2017 saw numerous merchants drop support for Bitcoin and others because of this volatility, so the evidence is there. Real World Assets Like Gold or Oil The concept is that while most cryptocurrencies are only backed by their network and white papers, crypto that is backed by real world assets like gold or oil will be tied to a certain price as the volatility in gold for instance is much less that crypto in its current state. Most of these coins intend to be stablecoins, cryptocurrencies that are pegged to a certain dollar amount. The issuing parties that upkeep the network constrict the flow of these stablecoins to make sure it holds its dollar peg. These pose a much better alternative to Bitcoin and others for merchant adoption as the value of these tokens is reliable and the fee structure is consistent. Gold Backed Stablecoins There are many up and coming cryptocurrencies that are backed by gold. This is because gold has historically proven to be the greatest store of value, regardless of the time period or nation that held it. Gold has much less volatility then other assets like stocks or currencies, and except in times of economic crisis, gold has remained very stable. Utilizing gold as a backing asset, these upcoming stablecoins will in theory remain very stable in price and be a better solution for worldwide merchant adoption. How can merchants trust using a currency that in one year multiplies in value by the thousands and in another year loses ninety percent of its value? It’s simply not feasible on any level and although many merchants see the potential of this technology to solve many issues, cryptocurrency is simply not ready in its current state. Cryptocurrencies Without Volatility Stablecoins have all the functionality of traditional cryptocurrencies with none of the immense volatility that has plagued many top cryptocurrencies. Stablecoins are still able to be used to transact anywhere in the world, can still be used with online wallets, they are fast and cheap and cannot be censored. In basic premise, they are perfect for worldwide merchant adoption. Middle Eastern countries are no stranger to gold. The Middle East’s gold markets are some of the world’s oldest. In particular, Saudi Arabia, Dubai, Iran and Egypt are some of the biggest producers and market places for gold jewelry and the exchange of financial gold assets, like gold bars and coins. Gold is something permitted by Islamic law and gold backed cryptocurrencies will help more members of the islamic faith start to get into and understand cryptocurrencies, ultimately ushering in more worldwide adoption. Kinesis Kinesis is a new stablecoin platform that will soon be one of the biggest competitors for all cryptocurrencies. The Kinesis platform will release several currencies backed by gold and silver reserves. The Kinesis currency KAU is backed on a 1 to 1 basis by grams of gold. The second currency KAG is similarly backed by silver reserves. Kinesis also plans to have several exchanges that cater to the minting process of these currencies, as well as a general altcoin exchange to be one of the main market places for their currencies. Minting will replace any sort of mining like traditional cryptocurrencies. With minting, you will in essence create your own crypto by depositing USD, other fiat currencies, or other main cryptocurrencies like Bitcoin and then turn them into KAU or KAG. These newly created cryptocurrencies will then be visible on the blockchain ledger. This provides transparency for all Kinesis users, ensuring that the number of KAU and KAG tokens never exceed the amount of gold and silver in reserves. Kinesis will be one of the biggest stablecoin leaders going into 2019. One Gram One Gram is a Dubai based group that has issued their own cryptocurrency that they say is Sharia compliant. Each One Gram unit is backed by physical gold that they have stored in their vault reserves. The coins are listed on their own exchange called Huulk which provides cryptocurrency trading pairs with their tokens. One gram even has a team of Islamic advisors that help make sure they continuously stay within Sharia laws. One Gram does regular audits of their gold supply to make sure they continuously stay on par with the amount of tokens in the ecosystem. The audits are provided by PWC, a reputable financial service. One Gram sold over 400 million dollars worth of tokens in the last year. Hello Gold Hello Gold is a Malaysia based mobile application that allows you to buy and sell gold. It is a simple platform that makes it easy to set buy and sell prices. The platform received approval from Islamic scholars at Kuala Lumpar based Amanie Advisors, meaning they are a fully Sharia law compliant organization. The chief marketing officer, Manuel Ho, the Hello Gold transactions occur within a defined period, making them less volatile and addressing the concerns of price slippage and volatility. Their ICO was launched in December 2017. The platform is geared towards those that want to purchased gold as an investment rather than those that are looking to trade cryptocurrencies. First Crypto Exchanges With this growing wave of interest in the Middle East for cryptocurrency, there was bound to be new major crypto exchanges heading there before long. In 2019, there will be new platforms available to satisfy the new investor interest. With numerous countries in the Middle East and Muslim communities worldwide, there are plenty of new opportunities for financial groups to build their own exchanges. With the new interest in cryptocurrencies worldwide, there certainly will be someone looking to capitalize and provide this niche. Professionals and analysts that understand investing laws in these many diverse regions will certainly be needed and welcome for these new exchanges to be built. First Exchange in the Middle East Rain Financial is full cryptocurrency exchange that is purported to be the first exchange in the Middle East to be licensed by a central bank. Their waiting list has recently opened after spending a year in the fintech sandbox of the Central Bank of Bahrain as they tested all the features for the open market. The team that put together Rain is a well experienced team of crypto veterans like Saudi blockchain consultant Abdullah Almoaiqrl and the Egyptian Investor Yehia Badawy. Rain has plans to offer both an institutional platform as well as a full brokerage service for retail crypto investors in the region. The exchange has stated that they feel that crypto adoption in areas like Iran and Egypt have been remarkably slow in comparison to countries like Turkey and Israel. Regardless, they say the demand is there and growing every month. They have compared interest in cryptocurrencies to other universal assets like precious metals and feel that the Middle East will be a massive portion of global sales in all crypto asset categories. Middle Eastern Countries Are Waiting The new exchange blames the regulatory landscape for the current lack of big transaction volume in crypto, citing cryptocurrencies like Bitcoin’s shadowy reputation as an anonymous currency of illegal activities. It seems the residents of these Middle Eastern countries are waiting for the full green light from regulators before they dive into this new financial sector. First Islamic Crypto Exchange The United Arab Emirates based financial group ADAB has recently announced their own plans to open a crypto exchange in the Middle East. The platform will be called “First Islamic Crypto Exchange” or FICE and is being called the first fully Sharia-compliant crypto exchange. On that note, the platform also has its own sect of the Sharia Advisory Board, an expert group that will make sure all matters of conduct are compatible with Shariah laws and principles. This new exchange will help the local regions primarily but will also be open globally for exchange services. The expected turnover monthly is an immense 4 billion. Whether or not these goals will be met is up to question, but it shows the team behind FICE certainly is looking to be a big player on the international crypto exchange scene. The financial group ADAB even has plans to offer its own cryptocurrency called the ADAB token. The token reportedly will be used to "pay for commission and services within the project." Major Cryptos Are Building Payment Networks Cryptocurrency experts have looked at the Middle East as the perfect region for crypto integration. The interest and use cases present in this area have attracted attention from major crypto businesses for several years now. Payments in and out of countries like Dubai or Saudi Arabia are a prime example. These countries have numerous foreign migrant workers who send payments back and forth as well as the billions they do every month in foreign business. Setting up crypto payment channels would not be a simple feat, but it is a goal set out by competitors Ripple XRP and Stellar XLM. These two organizations have a long standing rivalry and now seem to be fighting to set up these payment channels in the Middle East first. Payment Systems in the Middle East Ripple is a real time payment settlement system and remittance network. Widely renowned as being the leader in crypto payment networks, it seems as though this would be the perfect candidate for setting up payment systems in the Middle East. Banks worldwide are currently testing the Ripple network to shift money between countries and settle these transactions at a lighting fast pace. Currently, the system Swift has been performing this function for years, but many banks are looking for a replacement as Swift is dated, cumbersome and restricted. Currently, Ripple claims to have hundreds of banks in its payment network worldwide. Recently big news from the Ripple group broke worldwide. The first commercial bank of Kuwait, the Kuwait Finance House has stated they are using Ripple’s technology in numerous tests and applications including instant cross-border payments and settlements. After these extensive tests were complete and results were proven to be very effective, Kuwait Finance House has even announced they are joining the Ripple payment network known as RippleNet. This is a huge step for the Ripple Foundation in becoming a big player in the Middle East. With the partnership with Kuwait Finance House, Ripple will have a well established and reputable partner in the Middle East for their expansion efforts. This will certainly become an important milestone for the Ripple Foundation. Stellar leads Adoption in the Middle East Stellar is the main competitor in the same market share that Ripple hopes to take over. These two organizations have a long standing and competitive history, including major crypto figures that have worked on both projects. While Ripple was established first, Stellar has some features that separate it apart from the competition. When it comes to adoption in the Middle East, Stellar seems to have leapt over Ripple in one respect. In July 2018, Stellar announced to the crypto world that they have received a full Sharia compliance certification, marking them as the first ever Sharia law compatible cryptocurrency. This certification specifically applies to the field Stellar is trying to gain traction in, money transfers and asset tokenization. With this new certification, Stellar surely will have a big aid in building its payment network and crypto ecosystem in areas where compliance with Sharia law is a necessity. Many regions in the Middle East are now open to this crypto network and the financial infrastructure it is laying out. Many banks and financial groups offer Sharia-compliant products that Stellar can now be a part of. Adoption Is Spreading The cryptocurrency markets have seen numerous ups and downs throughout the past few years. Global adoption will be no easy task, but every disruptive and ground breaking technology follows a similar path of resistance before it eventually takes over. Major markets across the globe from China to Dubai are warming up to crypto integration and the power of this ledger blockchain technology. After nearly a decade of uncertainty the Middle East seems to finally accept cryptocurrencies as both a new financial instrument and as payment network technology that can enhance every area of finance. With 1.6 billion muslims across the world, this new group of investors could potentially be a huge driving force in the future. We’ve seen the levels of crypto mania in countries like Japan and Korean and the Middle East could rival that. Countries like Dubai and Saudi Arabia are known for their gold and oil investments and crypto could be an asset class that compliments that massive commodity portfolio. Kinesis Appeals to Middle Eastern Investors Gold backed crypto currencies like Kinesis will be the first in these areas as both a new investment class and as a currency of e-commerce and merchants. Kinesis appeals to the Middle Eastern investors that are already well familiar with gold products, as well as merchants that can adopt Kinesis for payment solutions. With new infrastructure being laid worldwide, we might finally be closer to an instant worldwide network for everyone to use. While currently being restricted to using banks for international transfers, with cryptocurrency and blockchain we are quickly approaching a new era of global transactions.

rafal szulczewski
rafal szulczewski

29/11/2018

Cryptocurrency is Saving Economies Worldwide

Often, economists look to the past and analyze repeating patterns of economic decline across many countries throughout history. These periods of decline are oftentimes caused by similar conditions. The main factor being the repeated devaluing of the country’s native currency. Traditional Fiat Currencies on the Decline The value of the US dollar, for instance, has seen a huge decline in purchasing power since the early 1900s. This is unprecedented, especially for what many consider to be one of the world’s strongest economies. Many economists can look back to 1971 when the US left the gold standard as a major turning point in the strength of the US dollar and their economy as a whole. The main problem with most traditional fiat currencies is that many are no longer backed by anything other than the issuing nation and, to a larger extent, debt. This has led to periods of economic instability and an overall decline in most of the developed world. These periods like the 2008 financial crisis will continue to repeat and ultimately become much worse over time. While this issue is much bigger than can be summed up in a few statements, many of the macro concerns go back to the currency of the nation and the purchasing power of their citizens on a global scale. Currency Devaluation While many less developed nations have experienced currency devaluation for decades, like Vietnam or India, many global leaders and economic powerhouses are experiencing these same problems now. This means huge trouble for the world economy as a whole. The United States is facing their own issues, and the UK pound is going to have its challenges as well with Brexit looming on the horizon. Many UK citizens discovered that when leaving their home country that their currency is now worth much less than when transferring into another currency. This is in addition to the outright financial collapse in countries like Turkey and Venezuela. The struggles these countries face to come back from devastation is something that will not be solved in one generation or more. It will take a long time for these countries to recover on many different levels, currency wise, business-wise, and politically. Citizens in many of these countries are leaving in huge numbers, and this leads to immigration crises in neighboring countries. None of these problems are easy to address or solve, but the currency devaluation problem is the most significant and the future of many countries lies in the worth of their issued currencies. Are Cryptocurrencies the Answer? Cryptocurrencies are new technologies. While they have come with a list of promises for future integration with our lives, many of these promises have so far come up short. It's important to remember that the structural foundation of this technology must be built for these things to happen. Indeed, many of the top crypto development teams are focused on the development of their platforms, and not the day-to-day prices or media coverage. The Crypto Mission Statement In its conception, crypto was toted as the end to government financial tyranny. No longer would the wealth of an individual be dictated by the government or nation they are a part of. With cryptocurrency, everyone has the full ability to be their own bank. This means having full control over their funds without any middle party to block or censor transactions. It's more than just skipping over withdrawal fees or the freedom to move funds whenever you want, foregoing banking hours. Crypto promised to be the end of financial oppression for the everyman. This means whether you live in a free country with laws regarding banking practices, or a country with a dictator that controls your spending, crypto allows you to become the only party that controls your finances. For some families worldwide, this principle means everything, even life or death. Bitcoin was the first real cryptocurrency that existed outside of theory. It set out to be a peer-to-peer electronic cash system. Simply put, digital money that can be exchanged anywhere in the globe at any time. Fast, cheap, decentralized and censorship-resistant. The Foundational Principles of Cryptocurrency Many developers and crypto enthusiasts have different opinions on what makes up a cryptocurrency, or what are the minimum requirements to call something a cryptocurrency. While these requirements may differ, there are several core concepts that most people will agree on. Its worth noting that many cryptocurrencies are different and have different fundamental properties. Some like Monero, aim to be completely anonymous and untraceable with no blockchain explorers or public wallet addresses. Decentralization A cryptocurrency is not controlled or owned by any one party. It is the network of many different users from all over the world that, in turn, make up the decentralized nature of cryptocurrency. This is absolutely essential to have a network that can facilitate transactions anywhere in the world. Miners are responsible for processing the on-chain transactions of a cryptocurrency. While there are mining pools and massive central mining facilities worldwide, it is absolutely paramount that one group never gets too much mining power over the rest of the network. Otherwise, this creates a monopoly of sorts that opens the network to risky possibilities. Preventing these types of mining monopolies is an issue that has not been properly addressed in the crypto community. Privacy and Transparency Intertwined Privacy is a concept that is completely foreign and unheard of to many individuals when it comes to their wealth and savings. Traditional banking and tax systems are established to ensure that every dollar and transaction is accounted for and properly monitored to some degree. In a world where we are rapidly leaving a day to day cash-based system, we are relying on our credit cards and bank transactions to facilitate everyday means of commerce. This means that we are placing more and more control into the hands of the very systems that mismanage our financial well-being by inflation and taxes. Crypto Currency Promises a Duality of Both Privacy and Transparency. Every transaction is recorded on the blockchain forever. While all wallets and their respective currency holdings are available on the blockchain record, the owner of the wallet is anonymous. So, simply put, you can see all wallet addresses that have been created in the case of Bitcoin, and how much each wallet is worth. You can also explore deeper and see all transactions this particular wallet address has ever made, and to what other addresses they have sent cryptocurrency to, and for how much those transactions were worth. This is a system that brings both criticism and praise. It creates a scenario where every user has the option to be as anonymous as they want. Major addresses are well known, with many of them being exchanges and other services. Smaller addresses could be anyone, and it is only through association with other services that the owner of these addresses can become known. More Privacy What makes this more private than traditional banking is the fact that there is no information gathered on the individual when creating a wallet, sending transactions, or opting in to be a part of the network by running nodes or mining. In traditional banking systems, you must provide all your information to the bank to open a bank account or get a credit card. While fiat currencies are impossible to control the origin or distribution, to exchange online or to other accounts, you need your own bank account or credit card in most cases. This even occurs with fiat currency exchanging. When you go overseas and exchange, say USD for Euros, the exchanging service will require your identity and information. Their government knows how much of your native currency you have entered their country with and how much of their native currency you now possess. The private nature of cryptocurrencies allows users the freedom to skip all intermediate parties and transact in whatever manner they choose. You no longer need a bank account or credit card to transact with people on the other side of the world. In addition, every major technical upgrade and all technical specifications are in the public domain. Bitcoin is open source software, meaning anyone can look into the source code to see all the inner workings of Bitcoin. Anyone can use this code to create their own fork of Bitcoin. This transparency goes against most of the software that is out there as very few companies have open source software that others can copy from. This transparent nature is absolutely necessary for anyone to trust and be a part of the Bitcoin network. Unlimited and Uncensored Transactions One of the main features that make cryptocurrency is the ability to freely send funds anywhere in the world. While the banking world revolves around a usual Monday through Friday 9-to-5 schedule, the rest of the world is rapidly approaching a need for 24-hour transactions. As more and more people do business globally, the need to facilitate these transactions quickly and at any time of the day cannot be understated. Cryptocurrency in its current form is perfect for integration with online applications. With brick-and-mortar type stores quickly falling out of favor and online shopping rising every year, the demand for a payment network that can be integrated online is also rising. Cryptocurrency can provide the network that will allow any users to transact online. Another feature that is somewhat controversial is the inability to recall or change transactions after they have been sent. While this is a hard concept to explain to new users or online merchants, this is very much a non-negotiable feature at present time. If you send your funds to the wrong address they are essentially gone forever. This is to prevent any sort of fraud or double spending on the crypto networks and is a feature that has supporters and those that would prefer an alternative. Like every technology, crypto or otherwise, the uncensored nature of crypto has the potential to be used for both good or bad. For those that live in countries with oppressive governments that can seize your property or censor how you spend your funds, crypto poses an alternative to bypass that censorship and control your funds with uncensored transactions. Controlled Supply One of the most important features that distinguish crypto and fiat currencies is the way the supply is controlled in the economy. While the US dollar has long been on a decline, after leaving the gold standard, we have seen rapid devaluation. To counter this, the American government has simply responded by printing more and more currency to combat short-term issues and devalue it even more in the long term. In fact, devaluing currencies by excess printing is one of the biggest issues facing most countries today, economically speaking. While other cryptocurrencies can be created from source code to provide an alternative to Bitcoin, like Litecoin, more of these individual currencies cannot be simply printed at whim. What this means is every cryptocurrency is created with predetermined hard-caps and other failsafe methods. A hard-cap means that after a certain amount of a cryptocurrency is created, no more will ever exist. In the case of Bitcoin, this is 21 million units with around 17.5 million currently existing in the ecosystem. This eliminates the possibility of printing more of a currency to further devalue it. Also, to make more Bitcoin, there is no central authorizing authority like a central bank system. To create more Bitcoin you have to mine it. This is a complicated process of utilizing computer processing power to solve complex algorithms. This system ensures many technical aspects of the Bitcoin network runs smoothly. Miners are paid in newly created Bitcoin and once the hard-cap is reached, miners will be paid solely with transaction fees from network users, to incentivize the continued upkeep of the Bitcoin ledger. Kinesis, on the other hand, utilizes a minting system that cannot be manipulated by outside governments or other forces. Kinesis’ native cryptocurrencies KAU and KAG are only minted when new users create these tokens by submitting fiat or other cryptocurrencies at one of Kinesis’ exchanges. When new KAU or KAG are created, they are then visible on the Kinesis blockchain, ensuring that no one can simply mint more cryptocurrency out of thin air. Furthermore, while Bitcoin is essentially backed by no monetary value except for the network (and there are no fiat currencies left that are truly backed by precious metals), as a gold backed cryptocurrency, Kinesis is backed on a 1-to-1 basis by gold and silver. While other cryptocurrencies and fiat currencies are susceptible to devaluation and wild price swings, Kinesis will remain as stable as gold has shown to be throughout human history as the world’s greatest store of value. Currencies Crises Across the World Throughout the last century and before, nations the world over have gone through their share of economic and financial crisis. While no crisis is particularly easy to pinpoint the causes, many have to do on some level with how the native currency was produced and devalued. In recent years, these financial crises have been mounting. There needs to be an alternative to the legacy fiat systems we have been using up until now. Looking forward, its very possible that crypto will provide the features and technology integration that is lacking in the payment systems that are usable today. More importantly, cryptocurrency can provide the features needed in the currency that will prevent the economic collapses that we have seen in several instances in the past decade. UK Brexit The struggle of the UK pound can be traced back to the fateful moment the country voted to leave the EU. Shortly after, the pound dropped to its lowest level in 30 years among fears from investors. Since then, there have been many sharp rises and falls while the pound fights to get back on track but remains a long way from recovery. For citizens that have no control over whether or not the UK leaves the EU, this puts them in a dangerous position. The UK relies on many goods and services from outside the UK, as do many western countries. Many families have already seen an extreme drop in their net worth since the Brexit announcement, and since Brexit has not yet happened, the uncertainty is a crushing feeling. US Dollar Since the 1900s the US dollar has been rapidly losing its purchasing power, as have most other national currencies. The nation’s money supply is constantly being expanded year after year with inflation and printing an essentially unlimited amount of paper currency. In 1913, America adopted the Federal Reserve Banking system that was the first step at abolishing the gold standard. In 1971, the US dollar left the gold standard for good, further decreasing its purchasing power. By this time, only 22 percent of all USD in circulation was backed by gold reserves. The Federal Reserve bank had extended so much credit to create USD without having the gold in reserve to match it that the USD had dropped immensely in value by this time. The interesting thing is when asked, many people would say that USD is still backed by gold. This shows that the facts of what is really happening economically are not widely known. The fact of the matter is that the US is currently over 20 trillion dollars in debt. This makes the concept of bringing back the value of the dollar quite an impossible feat to consider. Venezuela Bolivar Venezuela is currently facing what many consider to be the worst economic crisis in Venezuela’s history. This crisis was brought on by reported socialist policies and corruption in the Venezuelan government, as well as declining oil prices. Oil is one of the most important resources to the Venezuelan government. This has since caused a massive economic decline, with the Venezuelan bolivar plummeting in value. The Venezuelan bolivar has reached levels of inflation that are simply unheard of throughout history. In 2014, the inflation rate of the bolivar hit 69% which, at the time, was the highest in the world. It didn’t slow there, however. It reached 900% by 2016 and an unbelievable 800,000% by late 2018. Businesses have crumbled across Venezuela, with many people losing their jobs. Basic needs like food and other essentials have hit sky high prices in relation to the bolivar, leaving many people unable to purchase the bare necessities. Interestingly enough, cryptocurrency has already found a lot of use in this South American country. There have been numerous Venezuelan citizens that converted their life savings into cryptocurrencies to hold on to what they have left with Bitcoin going for insane premium rates. Citizens have also taken numerous donations online in cryptocurrencies. Crypto allows them a safe haven away from the devastating inflation of the bolivar and enables them to purchase their everyday needs. There are even reported plans for Venezuela to create its own cryptocurrency called the Petro, to combat the currency crisis they are facing. Turkish Lira Turkey has been facing economic challenges of their own in the last few years. Turkey’s economy is currently running an account deficit, with an inflation rate of over 20%. This inflation coupled with high levels of debt due to borrowing from foreign nations has left the Turkish lira falling at a rapid pace. Amid this lira downfall, Turkish crypto exchanges have had a massive rise in user base over the last several months. Investors and citizens alike are fleeing their native lira for cryptocurrency alternatives. This is to protect their life savings and businesses as the fate of the lira is uncertain. The more people that lose faith in the lira as time goes on, the more people will move to alternatives. How Crypto Can Provide a Solution Cryptocurrencies were born out of necessity and, frankly, a timely protest to the legacy financial systems that we have all been born around. Seeing governments abuse their financial sectors time and time again has left many looking for an alternative and a new system. Bitcoin was born in direct response to the 2008 financial crisis. The groundwork has been laid but it will take a lot of work with this new technology to get it right for everyone and, of course, adoption is key to this new technology taking off. In many instances throughout recent history concerning currency crises, there are several repeating factors that play a large part. The devaluing of the native currency through inflation and printing freely is a major factor. Many are no longer backed by any stable assets, most are only backed by debt and loans. The citizens in many cases are stuck and cannot easily exchange their native currency to something more stable. Cryptocurrency in concept has a solution to the limitations posed by traditional currencies. It has already proven to not only save the wealth of users but also to potentially save numerous lives in extreme cases of currency devaluation like we are currently seeing in Venezuela. Unfortunately, there are drawbacks to major cryptocurrency leaders like Bitcoin or Litecoin. Cryptocurrency in recent times has a well-earned reputation for unpredictable volatility. This is the last thing that users seeking a safe haven asset are interested in. On the other hand, gold has been the go-to safe haven asset since ancient times. With the creation of blockchain technologies, gold and cryptocurrency have been merged in new and exciting ways that combat the problems with traditional fiat, and the limitations of gold in its physical form. Stablecoins There is another type of cryptocurrency that solves the volatility issue that Bitcoin and others face. Stablecoins were created with the needs of the everyman, and not the investor, in mind. Bitcoin promised to be a peer-to-peer electronic cash system that can replace dollars for everyday use. Unfortunately, while Bitcoin has managed to grab media and investor attention, it has utterly failed at worldwide mass adoption. This Is especially true of merchant adoption, with Bitcoin actually losing the support of numerous merchants since 2017. How can a merchant, or anyone looking to Bitcoin as a safe haven, trust the asset with the volatility it has proven will be a reoccurring factor? Stablecoins like Kinesis will fill the market need that other cryptocurrencies are unable to. While most cryptocurrencies are backed by the technology, or their networks, or perhaps just empty promises, Kinesis is backed by gold and silver reserves. While other countries print their currency at will, Kinesis coins cannot be minted without users depositing cash or other cryptocurrencies into the system. This ensures that the amount of Kinesis cryptocurrency in the ecosystem never exceeds the amount of gold and silver in reserves. Gold has been the greatest store of value the world has ever known with a legacy that goes back to ancient civilizations. Now, Kinesis is taking the value and reputation of gold and merging it with blockchain technology to make the best stablecoin platform in the market today. The value of each Kinesis coin will be pegged to a 1 USD value. While cutting out the volatility of other cryptocurrencies, it maintains all of the functionality that makes crypto such an innovative and enthralling technology. Users across the world will have a safe haven investment that functions as a day to day currency that is immune to inflation or economic crises. They will be able to easily transact with others across national lines in a way that bypasses censorship and government control. For some people across the world in impoverished or oppressive countries, this could be a way for them to escape their economic situation and build up a future for their families. Banking the Unbanked In many more cases than people in wealthier countries realize, some people across the world have no access to traditional banking systems. There are many people across the world that simply are unable to open a bank account because of a lack of identification, or they are unable to get to a major bank. There are also instances where they are unwilling to put their money in a bank account because they do not trust these institutions. The distrust in banks is well-ingrained in many countries, and for good reason. While there are numerous scenarios of fraud with bank leaders, there is also the fear of banks locking your accounts and refusing to let you withdraw your funds. Again, cryptocurrency poses an alternative to these problems. A bank account is a major need for people across the globe, and crypto will enable those that are unable to use regular banks the opportunity to create their own bank account in crypto. Across the world, there are an estimated 2 billion adults that have no access to banking systems. When you break it down to individual regions, the numbers are astounding. In Central Africa, almost 95% of people are without a bank account, with countries like Cameroon or Madagascar reaching only 15% of people at most. In the Middle East countries like Afghanistan and Iraq, only close to 15% of people at most. While some people are simply unable to open a bank account, there are numerous other factors to consider. As mentioned before, distrust in banking systems caused many to refuse to open a bank account. The other issue is a common idea that they simply do not have enough funds to open a bank account. Their mindset is why tie their limited funds up in an account that is subject to fees upon withdrawing? Cryptocurrencies can help quell these concerns. With cryptocurrencies, there is no minimum amount needed to hold an account open. With most cryptocurrencies, the fees are so minimal that they are, in fact, cheaper than any alternative when it comes to sending payments. While users in these impoverished areas may be unable to travel to banks daily, the internet is becoming widespread in the most unexpected places, even deep African countries. This enables people to skip over any restraints with banking systems and still send payments anywhere in the world, instantly. History is doomed to repeat itself it seems unless we evaluate the reoccurring problems that many economies face and work towards amending the issues. While there are numerous macro issues that cause an economic decline, one of the most prominent aspects is always the devaluing of the native currency. Crypto has a lot of hype and promise behind it, but the potential that it shows can shine through all the doubt and past concerns if given the chance to flourish. This doesn’t mean that the vast returns had by investors will continue forever, but it does mean that this technology could be integrated with all major facets of our financial systems to ultimately make things like banking, sending payments, internet applications, and many structures vastly more efficient. This includes our day to day means of payment and the way we store our wealth. Crypto Currencies - are They the Answer and The Opportunity? Crypto has an answer and an opportunity here among the reoccurring periods of economic decline across the world. Stablecoins like Kinesis can be the leaders in market adoption, fulfilling the promises that Bitcoin and others have made since their conceptions. In crypto, the power truly comes back to the users, and not the issuing systems. The transparent nature of the ledgers and networks allows those that choose to use the system the opportunity to verify for themselves. Auditing banks, for instance, is not an easy feat, especially when the government outright prohibits such honesty. Cryptocurrencies like Kinesis are giving the opportunity for restricted and underprivileged users to gain access to financial systems and take control of their individual futures without anyone to restrict them.

rafal szulczewski
rafal szulczewski

29/11/2018

Merging Gold with Blockchain Technology

Since ancient times, gold has always been something that has had value attributed to it. All writings from civilizations long gone have mentioned gold and its valuable attributes. Throughout history, gold has gone through numerous changes to make it more accessible for investors. The problems with gold are also it’s strengths. Gold is of course, a physical metal. Unlike fiat currencies, gold cannot be simply printed and 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 inefficient process. Gold has a finite number when it comes to above ground stores. The problem with gold is, it is in no way an effective currency to use for daily exchanges. To store or move gold is an expensive process. This has led investors to search for an alternative to holding the actual 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 your portfolio without having to store the physical metal. There is also gold mining stocks for those that choose to invest like that. However, there is no other methods to use gold as a day to day currency for transactions. With blockchain technology, this will finally become a reality. 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 on in several different countries and are really a global platform for the sale and exchange of gold bullion. 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, gold. The Origins of Kinesis Kinesis has a distinct and grand vision for their 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 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 and as I went into that industry, I identified so many inefficiencies with the space.” Coughlin’s background in the finance industry comes from his experience as a hedge fund manager. From there, he founded ABX. 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 is 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 the Allocated Bullion Exchange 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 seeing as ABX is a centralized system, which limits the potential. 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 has 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. Gold and Blockchain Come Together Kinesis is focused on what makes sound money. This principle is what has drove Coughlin for a long time. Fiat currencies all over the world are facing deflationary pressure due to the national banks over printing funds and thus diluting the value. For this reason, Kinesis decided to utilize gold and silver as their backing assets for their cryptocurrencies, KAU and KAG. Both of these cryptocurrencies are backed on a one to one basis, one gram of gold for every KAU and 10 grams of silver for every KAG coin. Kinesis takes gold and silver and essentially puts them on a high speed rail system which is the blockchain. 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. Utilizing the blockchain, anyone can send payments and transact with Kinesis cryptocurrency, completely anonymous. This protects individuals liberties and identity in an age where your 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 crisis in many different parts of the world. The devaluing of currencies has been going on for decades, further promoting gold and precious metals as the stable alternative. Kinesis brings back stable value for everyday commerce by bringing gold into this new technology sector and integrating it with cryptocurrencies. Eliminating Abstract Value In the interview with Coughlin, a very important point he discusses is the abstract value of not only cryptocurrency, but all fiat currencies in general. He explains that most of the volatility in crypto comes from the fact that no one is quite sure what the true value of these cryptocurrencies are, perhaps it’s even zero. They are valued according to the confidence in them, and the confidence in the development teams. In this sense, cryptocurrencies today are very similar to legacy fiat currencies like the USD or Euro. The belief in fiat currencies backing, and the trust of the government is what keep them going. This is also how countries like the United States ends up with over 20 trillion dollars worth of debt. Kinesis cryptocurrencies eliminate this need for trust, essentially creating a trust-less system, which is what Bitcoin and alternatives were supposed to be. A user does not have to trust in the value of the Kinesis tokens, as each token is verifiably backed by gold and silver. As long as these precious metals hold their value, Kinesis tokens will hold their value. The arrival of stablecoin options in crypto is long overdue. Stablecoins like the Kinesis currencies will allow crypto to be adopted by users and merchants on a grand scale, and finally make crypto an everyday means of payment and exchange like it was intended to. As of now, there is next to no adoption, leaving many wondering what the true purpose of Bitcoin is, and whether it can continue to hold its value into the future without drastic changes to the underlying technology. Kinesis will outperform major crypto currencies by eliminating the abstract value and the volatility. Why Kinesis is Superior to other Cryptocurrencies If you are discussing trust, it is safe to assume more users trust in the value of gold versus the value of experimental technology. This is because gold has a timeless value attached to it. Where the world has gone through numerous technological advances, gold has stayed constant. The industrial revolution is long past, as is our dependence on steam or coal based energy, and yet gold has retained value throughout all of history. So while we watch this experimental technology called cryptocurrency grow, and the faith attached to it, we have to keep in mind that we run the risk of it one day being outdated, redundant technology. Everything in technology is rapidly changing, so there is not telling if there is a better crypto alternative right around the corner. This makes Bitcoin and other cryptocurrencies, very risky propositions. Especially considering we truly have not seen these blockchain systems be tested by mass adoption yet. This again puts Kinesis in quite an advantageous position. While other crypto currencies have no backing of any kind, Kinesis cryptocurrencies are backed by the best store of value in history, gold. This means Kinesis has the potential to effectively outlast all competitors and be the leader in stablecoins. In comparison, Tether, another stablecoin, has had nothing but controversy regarding their platform. Tether is backed by USD, an already rapidly deflating currency. This aside, Tether has numerous controversies regarding their lack of professional and publicly available audits. This has not been comforting for Tether holders. Especially considering Tether is supposed to be pegged to one dollar, but has its own share of volatility, and has failed to hold that dollar peg. Kinesis has verifiable stores of precious metals, and all transactions on the Kinesis blockchain will be publicly open to inspection. Fiat currencies are going through rapid deflation worldwide, with Venezuela bolivars and Turkish lira being prime examples of the catastrophes that can transpire. Any stablecoins backed by fiat currency are subject to deflation over time for this same reason. Kinesis will continue to be a solid alternative to all cryptocurrencies, and will be a leader in real world adoption. The Kinesis network will continue to grow, while other blockchains see less and less use. Kinesis will continue to be the superior cryptocurrency. Understanding Asset-Backed Systems According to Coughlin in this interview, Kinesis cryptocurrencies don’t actually represent tokens that are “backed” by gold in the traditional sense. The Kinesis cryptocurrencies are actually divisible units of gold and silver down to unit sizes that can be used to pay for smaller transactions. The ability of cryptocurrencies to be fully fungible and break down to smaller increments that 1 unit are a great advantage compared to stocks and bars of gold. Furthermore, there cannot be any more coins minted without there being gold in the Kinesis system to back it. This means there is no free flowing coins on the network that dilutes the individual Kinesis coin value. There is a two tier market structure with Kinesis. The first tier is where users mint their own Kinesis coins. They use their fiat currencies to actually mint their own gold and silver backed Kinesis currencies that are then deposited directly into their Kinesis wallet. This allows users to essentially be their own central bank, and have full control over their funds with no middle man. The second tier in the Kinesis system is where these actions are added to the blockchain ledger, for full transparency and immutable records. The Kinesis Business Model The Kinesis system is unlike any other in crypto today. What Kinesis is offering is a full yield and reward based system for all participants in their network. Kinesis is incentivizing the use of their coins for all minters in their system, which will in turn make Kinesis an attractive passive investment compared to things like rental property or stocks. Typical gold investors do not receive any type of yield, but within this new industry Kinesis has established a yield system that will reward users in four different ways. Minter Yield First there is the Minter Yield. When minters create their Kinesis coins, they are forever tied to this person. When the minter uses these in transactions, the coins will then return a 5% based on transaction fees in perpetuity. The blockchain ledger allows us to track the movement of these coins forever. This will allow Kinesis to determine the original minter of these coins and continue to reward them. This is incentive for users to continue to participate in the network by minting new coins and using them, and essentially a new ecosystem is being formed on the Kinesis network. Depositor Yield Kinesis depositors will also receive a 5% share of transaction fees on the first deposit and use of the Kinesis coins from their Kinesis wallet. Holder Yield For those that choose to hold the Kinesis coins instead of using them, Kinesis holders receive a 15% share of all transaction fees. This is calculated every day and the total is sent to their Kinesis wallet every month. Referral Yield This yield is specifically for those who choose to refer users to the Kinesis platform. Referrals will bring even more rewards for the platform users. The Growth Incentive What Kinesis is doing is incentivizing the growth of a stablecoin network. Traditional, there is no rewards or growth involved with stablecoins. With options like Tether or TrueUSD, the only reason to use these currencies are either as a safe haven against Bitcoin’s violent volatility, or as an onramp to major crypto exchanges. Other than that, there is no incentive, and to the opposite point, in the case of Tether and other major stablecoins, you are effectively losing value because Tether has failed multiple times to keep it’s dollar peg. Thus you are bleeding your portfolio just holding it. Kinesis has this yield system in place to create network growth organically. The more people using the network, the more benefits there are for the existing users. With Kinesis backed by gold and silver storages, there is also a better system to ensure that Kinesis will not lose its stable value. This makes it the better stablecoin option, ensuring it will be used on major exchanges more than alternatives. Also pushing Kinesis’ growth is their connections to ABX and other business partners. ABX is not a newcomer by any means. It is actually a well trusted and respected platform with many high level connections. In this interview, Coughlin details a strategic deal in place with a large mobile bank with 150 corporate clients and millions of active users. These partnerships were all born out of the existing operation, ABX. The Kinesis platform is the farthest thing from other crypto startups. Many of them just have a white paper and an idea and are starting from the ground floor. Kinesis is already well established and connected with a large community that is interested in this sound money project. Kinesis Roadmap Things are moving at a rapid pace for Kinesis. Currently in public sale, the KVT tokens are yet another offering for the Kinesis platform. With the connections Kinesis has, and the technology built around it, it can be scaled to a huge user base. The KVT token sale is your chance to take part in the value of the entire network, quite like stocks for businesses. The KVT tokens will grant users a share of the entire fee base for the network. This could potentially be a huge share when the Kinesis platform fully launches. The capital raised through this token sale will go towards building up all the infrastructure and technology that the vast Kinesis platform will need. In early 2019, Kinesis will begin to offer their long awaited gold and silver backed cryptocurrencies, KAG and KAU. This will be the first leap for the Kinesis network. Also planned is the Kinesis debit card. This card will grant the user the ability to utilize their Kinesis holdings for every daily transaction, even where cryptocurrencies are not yet accepted. This is in addition to the Kinesis wallet, which will link directly with the Kinesis debit card. Kinesis will also launch both of their crypto currency exchanges, for both minting new KAG and KAU coins, and for other altcoin transactions. Ultimately, 2019 will be a huge year for Kinesis as it becomes the leader in stablecoins and cryptocurrency technology. While many cryptocurrency platforms have little more than a white paper and empty promises, Kinesis has a full fleshed out vision, and the experience and development team to make it happen. The cryptocurrency market needs a stablecoin leader, and Kinesis will assume this role. What Kinesis offers is a full closed loop monetary system. Every detail and need for the user has been well thought out and considered. This ensures no reliability on services outside the Kinesis platform. While other blockchain companies hire for development of wallets or exchanges, Kinesis is creating all of these products themselves. This is a team with an unblemished record of meeting the needs of their customers. Coughlin first envisioned Kinesis before blockchain technology existed, and with ABX, he was just waiting for the proper time. Blockchain ledger technology has changed the finance industry and made it possible for the Kinesis platform and others to fulfill their missions. With the Kinesis ICO coming up for the KAG and KAU tokens, the future of cryptocurrency is within grasp. Legacy fiat systems will continue to be devalued and citizens of the world will continue adopting alternatives to ensure their financial futures. What they will be gaining with the Kinesis platform is full, unhindered financial freedom. Kinesis is abolishing the middle man, and ensuring that all users have full financial control of their funds, forever. There is no censoring of transactions, or locking accounts like services such as Paypal. The user has their Kinesis wallet, and is able to use their funds whenever they choose. This is a momentous time for financial liberty, and Kinesis is providing the platform that benefits everyone, from merchants to individuals. Gold is being merged with technology in ways that have never before been possible. With this system, gold is truly brought into the future. Investors and everyday people now have access to gold in ways that before were not easy or cheap. While gold has always been a store of value in times of crisis, it will finally return to the use it once had, an everyday means of payment and exchange. Kinesis is providing the platform that will allow users to finally be financially independent.

rafal szulczewski
rafal szulczewski

25/10/2018

The Kinesis Vision – An Interview with CEO Tom Coughlin

The Kinesis CEO, Tom Coughlin was recently part of an extensive US tour to meet with investors. During this time, Bart Chilton of the finance show “Boom or Bust” took the opportunity to interview the illustrious CEO about the rapidly growing institution, Kinesis. Coughlin was able to express his vision for the future of Kinesis and talk about the exciting developments Kinesis has had for the last several months. Kinesis Overview The cryptocurrency markets have the attention of the entire financial world. From the richest nations in the world to small independent countries, everyone is wondering how to proceed in this new rapidly expanding financial and technological sector. This involves new legislation, laws and tax plans and investor regulation for each country. Blockchain is quickly proving to be a valuable tool in most industries, and countries everywhere are figuring out how to adopt it for everything from government filing, to the tracking of goods along their supply routes. This is in addition to some of the biggest business corporations in the world like Walmart and Amazon. With many advances in the cryptocurrency and blockchain industries happening every day, one particular facet is still yet to be fully harnessed. The cryptocurrency market is in desperate need of a proper stablecoin that is truly reliable, and from a well established and trusted source. As described in the white paper, “The vision for Kinesis is to deliver an evolutionary step beyond any monetary and banking system available today.” Kinesis is in one part, an upcoming cryptocurrency project that promises to be the most efficient and trusted stablecoin in the market today. They are preparing to launch two digital currencies that will be backed by precious metals like gold and silver. These are time tested stores of value that have never lost prominence in the centuries they have been used for commerce, and investment worldwide. Kinesis has several tokens they are launching, their primary currencies being KAU and KAG. These two tokens are backed by gold and silver, respectively. This is in addition to their KVT token which is currently being offered in their public sale. The KVT token is their “Kinesis Velocity Token.” This is an ERC20 utility token for the Kinesis network. Holders will be long term investors and believers in the Kinesis project and will receive a proportional 20% share of all the transaction fees that transpire on the Kinesis network from the use of the KAU and KAG tokens. This is in addition to 20% of all commissions from the Kinesis Commercial center or KCC. Coughlin explains on Boom or Bust that Kinesis is more than just a cryptocurrency or stablecoin. It is a full monetary system with several tiers that has extravagant benefits to those that choose to be a part of their institution. “It’s secure and efficient and rewarding, really for the benefit of all both collectively and individually.” How Kinesis Works When you look into the inner workings of Kinesis, you will find a multi layered system that has been specifically designed to match almost every individual need of the consumer in the rapidly growing crypto space. Kinesis has done their market research from top to bottom and have a system that offers much more than any competitor in crypto, be it stablecoin or otherwise. Being developed and launched right now exclusively for the Kinesis platform, is everything from a sleek new proprietary crypto wallet, to their own crypto exchanges, to even a Kinesis debit card. The debit card is linked directly to your Kinesis wallet, making your Kinesis tokens spendable anywhere in the world, even where cryptocurrencies are not yet accepted. Coughlin explains in the interview that Kinesis has a “highly unique sort of two tier market structure.” The top tier is the primary market where anyone interested in using the Kinesis platform can go to mint and create their own cryptocurrency tokens that are backed by gold and silver. Essentially allowing anyone in this new market to create their own digital money, and thus be their own central bank while cutting out the middle man. In these times where distrust of legacy financial systems is growing, this is an attractive concept for many people. The second tier is the interaction with the blockchain where gold and silver are truly brought into this new digital age. The Difference between mining and minting When asked by Chilton about minting, Coughlin then explains the difference between Kinesis’ system of minting and mining which is used by the majority of other crypto currencies. Mining is the system used by other crypto currencies to create new tokens by solving very difficult mathematic algorithms with your mining rigs. This is a very extensive process that needs very hi-tech computer chips to do. This process is also incredibly wasteful as far as electricity is concerned. It is estimated that the total mining worldwide is comparable to the annual electric consumption of a small country. Minting however, is a conversion of fiat currencies into the new Kinesis tokens, KAU and KAG. Coughlin explains “the gold is already above ground, it’s already there, so it’s really a conversion between another currency into basically a gold currency.” This is the real heart of the Kinesis system. No wasteful mining that depends on mining pool centralized in China. Anyone can mint their own cryptocurrency with Kinesis by converted fiat currencies into these Kinesis precious metal coins. The coins KAU and KAG are backed on a 1:1 ratio. This means one gram of gold to one KAU coin and ten grams of silver to one KAG coin. KAU and KAG refer to the chemical names of gold and silver on the periodic table of elements. When someone wants to create these coins, they utilize Kinesis’ KCX or Kinesis Currency Exchange. When purchased with fiat currency, or alternatively bullion holdings, the Kinesis coins are then emitted into their Kinesis wallet at the same time. These coins can then be used immediately. Another great aspect of the Kinesis system is the bonus “minter yield.” This is in addition to three other types of yield that Kinesis offers. These yields bring added value to users and continues to flesh out this multilayered system that benefits active users. Minter yield: The person who mints the actual coins receives a five percent return of the transaction fees that transpire on the Kinesis coins they create and then use. This is a great bonus that continues to pay out for the lifetime of the coins. Holder Yield: Kinesis coin holders receive a fifteen percent share on their coins that comes from the transaction fees on the Kinesis network. This is calculated on a daily basis and credited to the associated e-wallets every month. Depositors Yield: This yield is a five percent share of transaction fees on their first deposit and then the use of the coins from their wallet. Recruiter Yield: This final yield is variable referral bonuses to for bringing new users to the kinesis system, be it individuals or corporations. Gold As an Investment Throughout History One great point that Coughlin touches on in this interview is that gold is the greatest store of value throughout history. Gold carries with it the reputation of a solid stable asset and has for centuries. One major factor that has turned off new investors in this digital space is the intangible nature of these new digital currencies. Older investors cannot understand the concept of money that isn’t backed by anything, and the fact that most cryptocurrencies have no real backing is exactly the reason for the notorious volatility they experience every day. Kinesis understands this dilemma well and that is precisely why they have chosen to use gold and silver as their backing currencies for the kinesis platform. “We are focused on what makes money successful, we’re talking about gold, it’s the greatest store of that the world’s ever seen.” Combining gold and the blockchain Kinesis is leading the crypto universe in gold and blockchain integration. It is finally time that gold comes into the digital age in a way that is safe against hacks, fast and cheap for users, and has all the features that make cryptocurrencies so attractive to users. Coughlin describes the second tier in the Kinesis system as a “highly efficient rail system.” He is referring to blockchain technology and all the advantages this brings to the gold markets. As Coughlin puts it, when you mint the Kinesis cryptocurrencies through the KCX exchange, the gold or silver is then submitted into the blockchain. “So that’s where we make it an efficient medium of exchange ultimately to be able to transmit or transfer value between different parties within the blockchain system.” Fast global transactions Gold has been the same for all of history. The medium in which we exchange it is what is changing. Gold cannot be moved cheaply and safely. With this Kinesis integration, gold will be as fast and easy to move as any other cryptocurrency. The core principle of cryptocurrencies as written in the bitcoin white paper is a peer to peer electronic cash system. A simple concept that unfortunately bitcoin has failed to provide. Kinesis will fill this role in new and exciting ways. Even before the Kinesis exchanges and the debit cards or anything else, it starts with peer to peer transactions. For Kinesis to be successful, transactions need to be fast and cheap for all users, all the time. To ensure this, Kinesis chose the best network to fork from to ensure these needs are met. In the end, Kinesis decided to fork from the Stellar XLM network. Stellar is well known for it’s speed in processing transactions. Following a number of tests and experiments, it is proven that the Stellar network was able to process between 3000 and 4000 transactions per second, a good starting point for Kinesis. This is a stark difference from the bitcoin network which processes a mere seven transactions per second. Another big detail that the Stellar network is known for is their consensus vs mining model. Stellar does not use mining in the way that competitors like Bitcoin or Litecoin do. Stellar uses a consensus model which requires a specific amount of nodes to reach consensus for transactions to be passed onto the network. The Kinesis network will utilize this feature. Kinesis will ensure that external parties cannot try to say, add false nodes to the network. This will be through a process where consensus is reached from trusted nodes on the network only. Mining is also risky when considering how it is essentially a technological arms race. There is potential for centralized mining pools to takeover the majority of the mining power and therefore the network power by have more miners than competitors. This is risky for any new or established network. Kinesis eliminates this risk with a fork from the Stellar network that utilizes the consensus method. This ensures that transactions remain fast, and cheap and don’t get clogged in the network. Kinesis promises lighting fast transactions anywhere in the world. This means two to three seconds, not hours or days which is the case with bitcoin at times of high network congestion. In addition, Coughlin also promises fees that are much lower than any competitor. He says the standard fee rate will be 0.45%, much lower than alternative cryptocurrencies or payment networks like Western Union which can be up to an insane 25%. Kinesis Decentralization The show’s host, Bart Chilton asks Coughlin an interesting question at a certain point in this interview. One that really touches on the message of both Kinesis and the entire crypto market in general. “What sorts of problems is Kinesis trying to address in the current financial system?” Coughlin goes on to describe the many problems with the banking system today that Kinesis will provide an alternative to. Here are some of the key points that Coughlin touches on. “We address problems across different sectors, and one of those sectors is the banking sector. So I go put money in the bank, I’m actually giving the money to the bank by transferring title of my money to that bank and so I’m holding counter party risk against that bank.” He goes on to describe the practice of bail outs for the bankers, where they have less risk or fear of being held accountable for running bad practices. Traditional banks act in the best interest of the bankers, not the users. Money in the bank is not money that you fully own or control. Kinesis and blockchain technology are changing that and putting you in full control of your funds. The Users are the Title Holders One of the most important key components of the Kinesis system is that the end user is the final title holders of all the gold and silver that users’ coins are backed by. Kinesis does not hold the users funds. Each individual has full control over their coins in the Kinesis crypto wallets and the coin holders are the gold and silver owners. In other crypto exchanges, you are turning the ownership of your coins over to the exchange when you deposit. You are then holding essentially a warrant for your funds to be paid upon withdrawal. It is important for the users and for the Kinesis system that users have full control over funds always. This is in the true spirit of cryptocurrency and for many in the scene, it is a necessity. As Coughlin says, “this is an attribute that Kinesis is addressing, one hundred percent.” Protection from Hacks Crypto exchanges get hacked because criminals know that is where many users keep their funds. With Kinesis, the users are in control of their funds. They are not sitting in an exchange where they have to wait for withdrawal delays. In addition, Kinesis is taking all measures to protect themselves and their users. The benefit of being blockchain based is that all the transactions are there visible on the blockchain. It is a transparent system that anyone can see and review. Transparency is key and Kinesis provides that. You know where your funds are being held. What makes Kinesis unique While there has been a few gold backed cryptocurrencies in the past, and there may be several more In the future, no one has approached this sector like Kinesis. In terms of what Kinesis offers, they are a much greater platform with numerous benefits to the user. Kinesis is a full monetary system with a primary and secondary market structure. Kinesis has mobile banking integration and even the Kinesis Commercial Center that ties in with merchants for ease of adoption. Kinesis has their own web wallets with rock solid support and sleek simple design layout for new users. Older model crypto wallets are clunky and easy to misuse and send transactions to the wrong places. Kinesis even offers a debit card that will allow users to spend their Kinesis coins anywhere where major credit cards are accepted. Therefore even though crypto merchant adoption is still slow, you can still spend your KAU and KAG coins anywhere in the world. Kinesis has a full yield reward system that incentivizes users. They have two dedicated exchanges. One being an exchange for minting new crypto coins and the other being a full service crypto exchange for digital asset transactions. No other blockchain or crypto project has a full fleshed out system like Kinesis has crafted. They have thought intensely about the end user and have provided a unique experience that meets all of the users needs in the cryptocurrency markets. Users benefit by spending money Kinesis is one of the only financial systems in the world that rewards the user for actually spending their money, as Coughlin puts it. Gold has traditionally been either an investment or a store of value for most of recent history. We are a long way away from the days of using gold for day to day transactions, food, services or whatever you need. Kinesis aims to bring gold back to being used as a day to day currency, through the use of the Kinesis coins. This is because Kinesis rewards users every time they choose to use the Kinesis coins, KAU and KAG. In a very astute and to the point example, Coughlin says “when presented with an option, okay I can spend my $20 US dollars now or I can spend $20 dollars worth of Kinesis coins, but I actually receive a benefit in perpetuity on Kinesis, I’m going to choose Kinesis.” That’s exactly the thought process consumers will have when they use the Kinesis system. As mentioned before, this is due to the yield system that rewards users with essentially rebates for using their tokens instead of hoarding them like gold investors. The yield system grants benefits to the user when tokens are minted, and used. There are numerous other benefits you are granted as a user just by participating in the network. With the Kinesis system, gold will return to a day to day medium of exchange through their KAG and KAU coins. Velocity tokens Coughlin then goes on to describe the other token on the Kinesis network. The Kinesis velocity token or KVT. This token is actually an ERC 20 utility token on the Kinesis platform. This token is currently in public sale, but is only available to licensed and accredited investors in the US, as Coughlin states. When you purchase and invest in these KVT tokens, you are investing into the strength and future of the Kinesis platform. This is because KVT holders actually receive a proportional 20 percent share of all the transaction fees that are associated with ALL of the Kinesis currencies. On top of that, holders receive another 20 percent of all commissions from the Kinesis Commercial Center. The benefits are very large for token investors. For those truly interested and believe in the Kinesis platform and it’s future, this is a chance to get a piece of the future growth and add it to their portfolio. Their Initial Token Offering for the KVT token is open until November 11th. Coughlin sums it up very well in the interview when asked about the KVT tokens. “So in the case of the Kinesis velocity token, whoever buys into these is buying into 20 percent of the revenue of the entire monetary system. So as you can imagine, a monetary system is a business with pretty big bones and if we follow through with our vision then it’s going to be quite a large business. Ultimately we’re getting good traction.” So really, when you invest in the KVT tokens, you are getting a 20% share of the network and all the transaction fees of the entire system. This is quite an attractive offer for the right investor. The Kinesis Advantage Kinesis has an advantage over all other cryptocurrency startups, and that thing is legitimacy. Kinesis was born from the ABX or Allocated Bullion Exchange. Coughlin explains in this interview that ABX is “a full institutional exchange for spot precious metals, gold ,silver and platinum, with an unblemished track record.” ABX was founded in 2011 and is very experienced already in the precious metals markets. So they are well equipped to advise and guide Kinesis through every asset of their business. ABX is also the world’s leading electronic institution. Technology is fused into their business, and they are very forward thinking when it comes to the future of finance. Naturally, blockchain would be the next logical step and Kinesis makes the perfect partner. There is few startups in crypto today that have the same reputation or connections that Kinesis and ABX have. More on ABX, their exchange exists on a global scale, which represents seven major trading hubs for precious metals around the world. This is on four different continents and seven different countries. Being the first electronic exchange for physical bullion puts ABX in a market leader position and adds a lot of reputation and value to the Kinesis rollout. Few projects or startups in crypto today have the vision or the scope that Kinesis presents. While most startups aim to solve one task or problem, Kinesis has a multi layered fleshed out system that simultaneously solves numerous problems in finance and crypto while providing a service that everyone needs. For starters, Kinesis will solve the volatility problem that major cryptocurrencies of today are facing. This will pave the way not only for merchant adoption, but mass consumer adoption for day to day peer to peer commerce. This is what crypto was meant to be in its inception. Kinesis has more to offer than any other stablecoin competitor, simply overshadowing competing startups. Exchanges everywhere in crypto need a stablecoin they can rely on. One that is not backed by promises or other cryptocurrencies, but by real world tangible assets. With the reputation that Kinesis has, and the fact that they are backed by precious metals, Kinesis will naturally be a favorite for exchange adoption everywhere. Kinesis offers true stability and most importantly, confidence in your investments. Kinesis offers more as a platform than any competitor. A debit card that is useable anywhere is yet another feature that crypto users have been begging for. Many users want to spend their cryptocurrencies but are unable to. This is a feature that is groundbreaking in itself before other Kinesis features are even touched upon. Kinesis is meeting all government requirements and legal obligations. This is something that puts them already ahead of competitors. Regulations in this crypto currency sector are rapidly growing, but legacy financial markets are no stranger to the needs. Again, Kinesis’ connections and experience in financial markets are putting them well ahead of new face crypto startups, many ran by young entrepreneurs without any experience. Kinesis Launch After the interview Coughlin stayed in the US to have many meetings with investors. The Kinesis platform is gearing up for their launch. The KVT token is currently in public sale for accredited investors and that sale is coming to a close soon. The Kinesis platform is ready to meet the public and will very soon in 2019. The roadmap promises to launch their KAU and KAG currencies in early 2019 Kinesis has put together an excellent team as well. This includes a the executive team that Coughlin is a part of, an Advisory board, an operations team, a development team and numerous partners. Few teams in crypto are as well put together. Kinesis has big platform put together and a big vision to fulfill. While there may be many stablecoin competitors coming into the market now, few have the same to offer in any sense. Kinesis aims to be the best in the market today. Utilizing the history and reputation of gold and silver to back their Kinesis coins ensures the rock solid stability that is needed in a stablecoin today. Coughlin has had several more interview talking about the Kinesis platform. The message is growing rapidly and many are interested in this new platform. Kinesis aims to be a leader in the cryptocurrency market and surely will be. Many are already heralding Kinesis as a “Tether killer,” though these projects have many differences and are hard to compare. Most competitors are difficult to compare to actually. Kinesis has a lot to offer this crypto scene. It will be very interesting to see these developments happen, and see what place in the crypto universe that Kinesis takes.

rafal szulczewski
rafal szulczewski

22/10/2018

How Stablecoins will lead to consumer adoption of crypto

Cryptocurrency mania reached unparalleled heights in 2017. The feverish hype ushered in explosive growth in this new technology sector. With money pouring into the blockchain sphere from every direction, it’s more important than ever to have an unbiased review of the underlying technology. While the public interest has certainly been grasped, it’s of the utmost importance to keep in mind that this new technology is very much still in its infancy. Mass adoption is the most important aspect when you consider the longevity that this technology, or any technology for that matter, will have. It’s without debate that cryptocurrency has not gained even a fraction of the adoption rate that it will need to be successful in the future. This includes merchants, big corporations and individual users. In technology and marketing, often “killer features” are discussed. Crypto’s killer feature is adoption. Without the everyday use factor, reliability and consumer dependence, there will not be a bright future for the cryptocurrencies of today. If the adoption doesn’t grow at the same rapid pace that public interest grew in 2017, then cryptocurrencies will remain a speculative financial instrument, and before long they will be forgotten. At the current moment, blockchain and decentralized applications, more commonly know as Dapps, have little real-world use. Nothing close to the hype and promises of the thousands of ICO’s that have been launched in the last few years. On the contrary, most of these blockchain-based businesses are not live and ready for consumer use yet. This sector is still full of new and experimental technology, and this comes with big risks and big expectations to fulfil. Dapps and Blockchain have a lot to offer the world, and their integration in our daily lives and the technology we already use could very well usher in the next great industrial era. For these new technologies to be adopted by consumers, they need to provide a user experience that is straightforward, simple, familiar and ultimately better and cheaper than what consumers already use. These are the foundational principles of mass adoption of any new technology that has ever existed. The population at large is not interested in complicated technology for the sake of something different or new or unique. They are interested in things that make their lives simpler, easier and make their transactions and purchases cheaper. Blockchain and cryptocurrencies have some huge hurdles to jump before we get to the blockchain utopia described by the proponents of this new technological sector. Crucial Steps for Consumer Adoption of Crypto Currently, in the financial world, centralized applications are the leaders and always have been to some degree. These are the biggest names that are known the world over and are the leaders in the financial sectors. These include the biggest banks internationally like Citibank, HSBC, and JP Morgan. The legacy credit card payment networks like Visa and MasterCard. Even the new transaction networks and wallets like Paypal and Venmo that exist through online and mobile applications to reach people anywhere in the world. While Blockchain and decentralized applications have yet to gain real world use traction, they have a lot of promise and could potentially morph to exceed the hype in any of the ways we can imagine today. To get there, we need adoption on a mass scale to make these options competitive and enticing. Here are some of the biggest steps that crypto needs to take for consumer adoption. User Friendly Wallet Interface As an industry, we need to accept upfront that the vast majority of people are not technologically inclined. While younger generations are now being born with smartphones in their hands, the older generations are grasping only what they want or need from day to day. The past and present challenges of storing your cryptocurrencies are not things that will be welcomed by mass audiences today. During crypto’s inception, the only way to store your cryptocurrency was through archaic and clunky desktop wallets. These required setup and installation and basic to advanced knowledge of computers and command line interpreters just to store your money. Even today, newer web wallets are clunky and daunting, and that is before you bring in transaction hashes and blockchain explorers. There is simply too much to consider for the average consumer and as a result, they are turned off and instead leave their crypto on exchanges. This is a terrible habit to get into in a time where numerous exchanges have been sited for their poor security practices and the track record of high value exchange hacks is well known and documented in the public’s eye. Wallets must be easy, streamlined and consumer-friendly. Venmo in particular is an industry leader in just this, easy to use wallets for the everyman. Venmo seems to follow the philosophy of Leonardo Davinci and other great minds. That principle is that the key to perfection lies in simplicity. With Venmo there is a wallet, username, and an optional security feature. This is a stark contrast to industry leader in crypto wallets, MyEtherWallet. MEW uses complicated transaction addresses, long signatures that are easy to mistype. The delivery process is shaky and time-consuming. There are moments of uncertainty when sending any transaction and often times people are prompted to check constantly that they sent their money to the correct address. Most crypto wallets are also poorly designed. While many other popular and well-known services like Venmo have crisp clean designs, many web and desktop wallets are made by small independent teams in crypto. These teams are often programmers and not designers, so little thought is put into the actual design or layout. They are more concerned with function, security and reliability, which are admittedly very important. However, it is already daunting enough to use crypto wallets and the blockchain for transactions as is, and these wallets are hard to navigate and find the correct features to use, just adding to the uncertainty of the user with every transaction. These wallets interfaces need to have easily identifiable usernames to distinguish the endpoint of the transactions, instead of long strings of characters. The Ethereum Name Service (ENS) is attempting this for the Ethereum network. Gas for transactions should be calculated in wallet, and give the user choices such as slow or fast transactions, resulting in low or high fees for the user. We are an increasingly mobile-based society. For some people, their mobile phone is their gateway to the internet, rarely using desktop or laptop options. For this reason, all crypto wallets need to have mobile-friendly options that are fast, reliable and lightweight on their devices. This will enable users to send and receive transactions anywhere in the world and is crucial to mass adoption. Low Transaction Fees High transaction fees are something that consumers will have trouble agreeing to. This is something that will certainly pose a barrier to entry for the average consumer. Especially when these fees fluctuate daily and cannot be relied on, like what we saw throughout 2017 with Bitcoin. The more that Bitcoin was used, the higher the fees became when people were gladly paying even more in fees to make sure that their transaction went through as fast as possible. Consumers are used to paying fees when sending money, especially with credit card transactions, but if you want people to switch to your service, you need to offer a better alternative. Not the same thing they already dislike. Also, many Dapps require multiple transactions, greatly increasing fees overtime. Merchants in particular simply cannot have these fluctuating fees. Their businesses depend on accountability and they have to know upfront what they spend to accept and receive crypto payments. There is not many ideal options out there now in crypto, but there has to be a low cost transaction alternative to the current issues crypto is facing. Quick Transactions In addition to the low fees, there cannot be transactions that get stuck in limbo before reaching there destination. If crypto really is the future of money, and money over the internet, then it needs to be as instant as email. This shouldn’t depend on a certain time or how full the blocks are, this needs to be anytime anywhere transactions that are solved instantly. This is crucial for mass adoption and our current needs as a society. Even more importantly, the biggest hurdle for mass adoption of crypto revolves merchants accepting it for their goods and services. The only way this make sense for them is if it is a low cost and instant transaction for them. This alone can take customers from Paypal, who is infamous for blocking transactions, holding payments, and freezing accounts. With online shopping at all time highs around the world, lighting fast transactions is no longer a luxury, but a requirement. Mass Adoption Scalability Every individual cryptocurrency has their own idea on how to properly scale for the mass adoption that is promised to come. Unfortunately, all solutions at this time are either completely theoretical or still deep in development with no posted release date. This includes the Lightning Network with Bitcoin, and sharding with Ethereum. Two of the most promised and coveted solutions to the ever present scalability issue. This foundational issue is one that nearly split the bitcoin network apart in 2017 over disagreement on what the solution would be. This in turn spawned Bitcoin Cash, a Bitcoin fork with bigger block sizes. There simply cannot be arguments in these emerging technologies that cause splits between communities. For crypto to be flourished and adopted, there has to be unified scaling solutions. Consumers will not wait around for crypto to work itself out. Transactions become cheaper with different scaling methods. With Lightning Network, transactions with become almost free because nothing is recorded on chain except for the details regarding the initial settlement. To be effective, Lightning Network will need an ever increasing amount of user nodes to run.Ultimately, scaling will bring more throughput which makes transactions faster and more reliable for merchants and users. Currently, the network is often congested, leading to pitiful throughputs, like Ethereum processing around 15 transactions per second. Comparatively, Visa processes 150 million transactions a day, almost 2000 transactions per second. There is no comparison with current crypto networks. If Bitcoin for instance received just a percent of Visa’s business every day, the network would be completely unusable for everyone. Mass Adoption of Stablecoins It seems as though most of the cryptocurrency markets are coming to the point where they must decide to be either a speculative instrument for investors and traders, or a means of everyday commerce for merchants and users worldwide. Transactions in Bitcoin commonly means the user pays too much and merchants lose money due to volatility. In fact, many merchants that accepted bitcoin from its inception to now have dropped their support in 2017 and 2018 because of this fact. The last few years, the world has watched the volatility of cryptocurrencies and decided that it is not quite ready to be used for daily purchases. On the contrary, at the current moment, people are afraid to spend it at all. Most seem to be terrified of missing out on increased value for their dollar. If no one uses cryptocurrencies for transactions, then this is defeating the need for them at all. It seems as though people have woken up to this and are ready for an alternative that is reliable and can be used efficiently everyday, anywhere in the world. Stablecoins are the Holy Grail of Mass Adoption If there is one thing that the crypto market desperately needs to survive, it’s stablecoins. The crypto market is absolutely starved for asset-backed tokens that are trustworthy, reliable and immune to the daily fluctuations of other big-name cryptocurrencies. This immense need for this instrument has prompted some to call stablecoins “the Holy Grail of the crypto markets.” While asset-backed financial instruments are nothing new to the financial world, they are something that will be a novel and new implementation in the crypto world. Stablecoins, put simply are cryptocurrency tokens that are pegged to a stable price and value. While they share all the features that make other cryptocurrencies so popular, they do not have the same volatility that exist in other areas of the crypto markets. This in turn enables them to be better candidates for the store of value proposition that was expected of the earliest cryptocurrencies like Bitcoin. These stablecoins are still able to be stored in wallets, sent anywhere in the world, and preform all other functions that crypto is famous for. While there are some stablecoins that exist today, like Tether, there are several problems with these options. There has been many public issues with Tether, with some accusing them of being insolvent and the individual Tether units being unredeemable. Some have also speculated that they have quickly fleeting banking relationships. This is troubling considering Tether has state numerous times that they have 1 USD for every USDT token in existence. Now more than ever, the crypto sphere needs a stablecoin that comes from a verified, trustworthy source. Other needs for a stablecoin comes from the very lifeblood of this new financial market, the exchanges themselves. Exchanges need a value pegged instrument to serve as a financial pairing instrument such as BTC/USDT. They cannot use an instrument that fluctuates wildly. This has led several exchanges to create their own stablecoin, like Gemini with GUSD. Also, Circle, who owns popular exchange Poloniex, has plans to launch their own stablecoin, USDC. There are numerous other projects in development, such as Basecoin and MakerDAO. Most of these projects are still well in their infancy with lots of production still needed. I predict we will see immense amounts of these stablecoin projects in the future. It will take some time however, before we see a truly successful stablecoin at scale, and used by the public at large. There are certain qualities that stablecoins and asset backed coins need to prove to truly be ready for adoption. First off is the obvious, price stability. Along with any other cryptocurrency, it also needs scalability. Finally, resiliency is needed. These few attributes are the absolute minimum a stablecoin needs to have. While some might argue that privacy and decentralization, the core of the cryptocurrency philosophy, are non-negotiable necessities, it is had to argue for them when it comes to stablecoins. While they might be great additional features, we need secure and trusted sources to back up these assets and make them truly reliable. Stablecoin Model #1 Centralized IOU Issuance There are several theoretical models behind stablecoins. The first is to issue what are essentially IOUs. This is the model that is used by tokens like Tether and Digix. In this instance, a centralized company holds assets in a vault or bank account and then issues tokens with the promise that they represent a claim of the backing assets. This gives the token value because it is claimed to represent another underlying asset with a clearly defined value. One of the issues with this model is that it is a centralized approach, which therefore requires trust in the issuer. You have to believe that the issuer actually owns and holds the asset represented by the token and that they will honour the IOU in the future. This model has obvious risks involved, and there have been serious public concerns about stablecoin issuers Tether in recent history. Stablecoin Model #2 Collateral Backed The second model is based on pioneers BitShares. This model consists of trust-less assets that are verifiable on-chain, an important distinction. This model is also used by companies Maker, Haven, and numerous others. In this model, decentralized crypto assets are what backs the stablecoin. For instance, Maker’s Dai stablecoin is backed the amount of ETH held in collateral in an Ethereum smart contract. The collateral is held trust-lessly in a smart contract, so users aren’t relying on any third party. This option is decentralized and not at risk of any insolvency. Simply put, this model would allow users to create stablecoins by creating a smart contract, and then locking collateral that exceeds the amount of tokens issued. If a Maker user wanted to generate $100 worth of Dai stablecoins, they could then lockup $150 worth of Ether. The benefits of a smart contract are in its usability. The collateral could be obtained by paying back the stablecoins, or the contract could be terminated with the collateral assets sold if certain pre written requirements aren’t met. The biggest benefit however, is that there is no trust in central parties required. Central parties controlling funds is the very antithesis of the cryptocurrency movement. There is one glaring issue with these smart contract stablecoins. The issue is the collateral that backs the stablecoin is often times an incredibly volatile crypto asset such as ETH or BTS. These assets have wildly swinging values, and as a result, most of these projects require the stablecoins to be greatly over-collateralized enough that compensates for the sharp and sudden price falls or drops. There is also no protection against unforeseeable catastrophes in the crypto markets. Stablecoin Model #3 Seigniorage Shares The last model is the seigniorage shares approach. This approach is very similar to what central banks do with fiat currency controls. This approach uses algorithms to control the supply of the price stable currency. However, unlike other models, there is no backing asset to these stablecoins. The only thing backing them is the expectation that they will retain their value over the course of their life span. In the seigniorage shares model, there is an initial creation of stablecoins that are pegged to a certain value of a popular and well-known asset like USD. Over time, the supply will automatically change in response to the demand for the asset. There are different methods to control the supply, but perhaps the most common is the method using bonds and shares that was introduced by the stablecoin, Basecoin. The demand for these stablecoins grows as the network grows. What initially was a fixed supply has to increase to meet the growing demand. Normally with an asset, an increased demand then in turn increases the price. In this model, however, new coins are issued to counter the increased demand, continuously inflating supply to keep the price pegged at a specific value. The biggest challenge of this model is figuring out how to expand and contrast the circulation of the stablecoins in a way that cannot be gamed or abused, while simultaneously being decentralized. While expanding the supply is straightforward and simple, when it comes to contracting the supply, that is quite different. The rules revolving around this action need to be clearly outlined and agreed upon. Users must somehow be incentivized to voluntarily part ways with their stablecoins, normally through the use of bonds. These bonds have a par value with $1 and are then sold at discounted prices to holders who surrender their stablecoins to be removed from circulation. Shares can also be used in this instance. Shares are like equity. They represent a claim on a future stablecoin distribution. Dividends on the asset are paid to shareholders, and often times shareholders also have voting rights. Upcoming Gold Backed Stablecoins Kinesis Location: Isle of Man Kinesis is the next step in the evolution of cryptocurrency. The Kinesis tokens, KAU and KAG represent 1:1 stores of 1gram of gold and 10 grams of silver. The Kinesis team has developed their own cutting edge native blockchain forked from Stellar. The Kinesis Network has rapid transaction speed and percentage based fees that are customizable, creating the best conditions for the native Kinesis tokens. Their Initial Token Offering runs until November, 2018. Kinesis also supports their own debit card. The Kinesis debit card will allow for instant conversion of KAU and KAG into fiat currency for use with any Visa or MasterCard system. Users of this debit card can even withdraw fiat from traditional ATM’s. This debit card is something that crypto users have been requesting for years, especially as less and less merchants are accepting cryptocurrencies every year. This is in addition to the new Kinesis in house designed wallet. The wallet was built to accommodate all their native currencies. There is the ability to save the addresses of payees for repeat transactions. You can also name accounts to remove the need for lengthy account keys. Security minded users can even choose the optional multi signatory function and sign and verify functions to increase their transaction security. Overall the web wallet boasts some very unique and useful features. AgAu Location: Zug, Switzerland AgAu is named for the chemical signs for gold and silver. They enable completely decentralized ownership of gold and silver assets. Their tokens are backed by 1:1 grams of gold or silver for the Ag and Au tokens respectively. Airgead Location: Dublin, Ireland The Airgead token provides an interesting concept in the crypto community. Each token can represent any amount of precious metals ranging from gold, silver, platinum and even palladium coins and bars. These precious metals can be merged in any amount into a single token. Cyronium Location: Jakarta, Indonesia Cyronium comes from Indonesia and is another gold backed token. Each Cyronium coin consists of 20 grams of 99% pure gold. A stark difference between other projects, Cyronium actually allows you to take the option of receiving physical coins that represent their native CYRO token. The coins are shipped to the purchaser and the CYRO tokens that correspond are destroyed to prevent any duplication. They have gold reserves in Singapore. EAU-COIN Location: Gothenburg, Sweden EAU-COIN is another gold backed token that implements smart contracts based on the Ethereum blockchain. All EAU-COINs are backed by gold reserves that are owned outright by the company. Each year there will be at least two issuing rounds for the tokens correlating to market demands and how much ground gold assets are being mined. Goldma Location: Zimbabwe Goldma is a unique and interesting proposition. Unlike most other gold backed tokens, this token is based on future mined gold and not any gold in vaults. Goldma is a token backed by a fully operational gold mine in Zimbabwe. When gold is mined, it is sold at spot and Ether is bought with the proceeds. Jinbi Location: London, UK Jinbi tokens (JNB) are backed by a gold supply that increases from the production of gold by their mining partner. Jinbi will pay dividends to token holders at every production milestone, payable in either physical gold or the JNB token. Karatcoin Location: Cossato, Italy Karatcoin is a platform that deals in the exchange of Karatcoin tokens and gold certificates. The token used is KCG gold token that represents 1 gram of gold secured in their own vaults. Kinesis Prepares for Market Rollout Right now in Crypto there is a massive need for a secure and reliable stablecoin. Kinesis aims to be the one to live up to this hype and fill this niche. With their specific yield, they will have continuous returns made to holders of their tokens that spawns from activities that their token is used for, essentially dividends to token holders. This includes referral bonuses for users that bring new clients. It will involve less risk than other traditional assets and ultimately, this can entice many new users. They are building strategic partnerships with industries like the Allocated Bullion Exchange which will allow for even more exposure. Kinesis is even creating their own exchange, appropriately name the Kinesis Currency Exchange. This is their own wholesale market where it’s native currencies will be created and then connected to the global market via their partnership with ABX. This puts them distinctly ahead of competitors in this field. There is also the Kinesis Blockchain Exchange being built. This will provide deep liquidity to the Kinesis token which is necessary for this stablecoin to thrive. The exchange will be a traditional crypto exchange where all the Kinesis tokens and other big market cap cryptos like Bitcoin and Ether can be traded. It seems Kinesis has all the challenges figured out and is providing creative solutions to these. There is numerous aspects to the Kinesis project that are breaking new ground and providing value to users. In time they will prove to be a leader in stablecoins and cryptocurrency in general.

rafal szulczewski
rafal szulczewski

15/10/2018

Best Cryptos to Invest in the Year 2019

Looking back in recent history, it seems as though big investors and financial organizations are changing their attitudes towards Bitcoin and altcoins. The media coverage worldwide illuminated the vast returns being had in the best cryptocurrency markets, with many coins up over 100x since their conception. This certainly has garnered the attention from both legacy and newcomer investors. Currently, everyone is waiting to see if cryptocurrencies can continue on their path to new all time highs. 2017 turned out to be a whirlwind year, with most cryptocurrencies soaring to new all time highs at the end of 2017 and early 2018. The media coverage of cryptocurrencies was nonstop, with news reports on financial programs almost daily. In addition, many movies and tv shows mentioned cryptocurrency, including the technology oriented show “Silicon Valley.” So far, 2018 has seen a vast pullback in the cryptocurrency markets. Many of the smaller altcoins are down over 90% with Bitcoin, which is considered by many to be the best cryptocurrency to invest in, still being down over 60% from all time highs. Even with the overall market pullback, many investors are still very bullish on cryptocurrencies going into 2019. Many big name institutions are jumping head first into cryptocurrency investing, with NYSE announcing a new crypto exchange, BAAKT. Also Fidelity has announced a crypto support platform for their customers. Even legendary Ivy league university Yale has announced a new 400 million dollar investment fund geared towards cryptocurrency. With so much bullish news adding up rapidly, almost everyone seems to expect a very profitable year for crypto leading into 2019. While Bitcoin is still currently the market leader there are also some big name altcoins that expect 2019 to be a huge year for them. The Altcoin Hierarchy Before getting into cryptocurrency investing, let us go through the basic classes of cryptocurrencies that exist in the market. While every class has the potential to have impressive returns, some coins have more impressive use cases and concepts, In addition to more qualified and funded development teams. Simply put, not all altcoins were created the same. The Penny Stocks of Crypto These are the bottom tier altcoins that could possibly become worthless in the near future. They operate much like penny stocks, advertising big promises of ‘guaranteed gains’. Eventually, many fail to offer a fraction of their promised returns. One of the ways to identify these is to look at their team members, their past experiences, objectives of the project, probability of mass adoption, actual use of the coins and many more. The reasons for their failure is usually because of unwillingness to work for the vision they once promised in the first place, bad wealth management, inclusion of scammers in their team, unrealistic expectation from the project and also making money via pump and dump schemes. Some of these coins are Trumpcoin, Russia Coin and Verge. Average Coins According to the ‘coinmarketcap’ website, there are currently more than 2000 cryptocurrencies listed on their website. Among those, there are around 500 of them that can be considered in this ‘average’ category. These are the coins that do have a purpose/objective to work on but fail to maintain a good development team. They and their coins don’t really have any kind of purpose in the cryptocurrency market and fail to finalize any kind of legitimate deals and partnerships with good investors. This makes their performance very limited as compared to other altcoins in the market. Some of these are Deep Brain Chain, Funfair, Decred, Navcoin, Populous, Cryptonex. Good Coins There are around 500 of such good coins in the market that do offer a good objective for the project, a solid team with good experience to execute such tasks, a good marketing strategy to reach out to masses to share their ideas and quality contacts to make some good partnerships in the market. The only reason why they are only classified as ‘good coins’ is due to the lack of uniqueness that the other ‘very good coins’ offer. They don’t really have that ‘point of parity’ in their project/product that separates them from their counterparts. Some of these are NEM, Stratis, Monero, and BAT. Very Good Coins There are around 100 such ‘very good coins’ in the market. Their objectives are well defined with a solid team to execute their tasks perfectly. Along with that, their marketing teams are also well-qualified to make their ideas reach to the masses. Because of such a wonderful blend, they are able to make better and stronger partnerships with a number of good companies. What separates them from the ‘Good Coins’ category is their USPs (Unique Selling Points). They are unique in what they do and that’s what makes the difference. Some of these are NEO, Stellar, Cardano, Ripple Top Tier Cryptocurrencies These are the top tier coins that provide the best functionalities. They have real-world usage, objectives to solve a real-world problem, strong fundamental teams to execute the mission of the project, marketing teams to spread the ‘idea’ and collaboration with a number of media channels to gain early investors. Also, due to a good PR team, they are able to make a very strong partnership with a lot of Fortune 500 companies that give them an extra edge over rest of the projects in the market. Some of these are VeChain, Ethereum, Bitcoin, IOTA, Icon, EOS, Kinesis. Promising Projects Going Into the New Year With more than 2000 cryptocurrencies out there in the crypto market, only a couple 100 of them qualify to be a top tier investment. It can be quite the challenge to find a worthy project among the thousands of choices. These next projects are some that show a lot of promise heading into 2019. Always remember the 3’S’ of the investment - Sane, Smart and Sensible.An investor who is sane, smart and sensible will always look into the facts before he invests in any business or project. Kinesis This is one of the most promising upcoming projects in blockchain and cryptocurrency technology. The broad overview of the coin is to offer an alternate and better evolutionary step beyond the basic monetary and banking system available today. In short, it is a cryptocurrency that is backed by precious metals like gold and silver. According to the CEO of the company, Thomas Coughlin, the Kinesis coin is basically divisible units of allocated gold and silver which you can use as a currency. There will be two stable Kinesis coins in the market backed by Gold and Silver. The stable Kinesis coins backed by Gold will be tagged as KAU and the stable Kinesis coins backed by Silver will be tagged as KAG. These stablecoins backed by the precious metals like Gold and Silver are real game changers as these 2 precious metals are definable stores of value for use in trade and investment in the real-world economies. The Kinesis coin is based on the Bespoke Blockchain Technology, a blockchain network forked off from the Stellar Blockchain Technology in order to suit the requirements of the Kinesis coin. The cryptocurrency project is headed by Thomas Coughlin who is also the CEO of the Kinesis company. He has 15 years experience in the investment, funds management and capital markets. Before being the CEO of the Kinesis company, he held similar positions for the Bullion Capital and TRAC Financial Group as well. Apart from Thomas Coughlin, there are other great members in the team as well. Their team consists of people like: Michael Coughlin, Chief Financial Officer, having 41 years experience as a CPA in the accountancy and financial services professions. Eric Maine, Chief Strategy Officer, having more than 30 years experience in Senior Management in the exchange and financial markets. Ryan Case, Head of Sales & Trading in Kinesis, having extensive experience as Head of sales trading & partnership and also valuable experience in commodity, cryptocurrency, forex and derivative markets. Jai Bifulco, Chief Marketing Officer, having a full-fledged 12 years of experience in award-winning full-stack marketer in Finance. He previously held roles of directors in multiple brokerages, consulting and Fintech sectors. There are more than 30 different team members in this project spanning their roles from The Executive Committee to the Advisory Board to the Operations and Development team. The coins are very limited in number as compared to other cryptocurrencies where the softcap is limited to just 15,000 KVT coins and HardCap is limited to 300,000 KVT coins. Minimum token that one can buy is set to 1 KVT which is equal to $1000. So far, more than 57,000 KVT tokens have been sold which roughly equals to a whopping sum of $57 Million. With such a huge investment already deployed for the development of the project, there are still 30 more days left for the ICO sale period to end. Also, apart from the investments gained, the Kinesis cryptocurrency is also focusing much on the partnerships with the top companies in the industry. These include companies like ABX (Allocated Bullion Exchange), MLG (Blockchain Consulting), Sigma Prime, Etherlabs and Fine Metal Asia Limited. When considering what cryptocurrency to invest in, this is certainly one to consider in 2019. VeChain Broad Overview - In simple layman terminology, Vechain is a supply chain protocol to track logistics inventory. It has successfully implemented blockchain technology in various sectors like agriculture and industries like luxury goods and liquor. They basically strive to solve real-life problems by providing solutions in various industries like: Logistics: In this sector, VeChain implements the blockchain technology to improve the flow of information from one department to another by breaking silos yet maintaining the data privacy of every department.Government: There are more than 111 VeChain nodes deployed worldwide. The municipal governments participate in the VeChain blockchain network as nodes. The VeChain blockchain network offers decentralization and immunity against the data hacking that allows room for transparent information exchange. This indeed improves the efficiency of the municipal governments. The technologies used to track the logistics are: Assigning digital identities to physical stocks that can be stored on the VeChain blockchain networkUsage of RFID (Radio Frequency Identification)NFC (Near Field Communication)Proof Of Authority ConsensusIn-House Temperature Controlled TrackingQuick Response Codes (QR Codes) The future potential of the VeChain cryptocurrency looks quite promising as the coin is signing new partnerships every month or so. Some of its partners are PricewaterhouseCoopers, DNV GL, Renault Group, KUEHNE + NAGEL, D.I.G, China Unicom and the State Tobacco Monopoly Administration of China. Every single company with whom VeChain partnered has millions of customers that will use the VeChain technology embedded in their system. This makes the coin solve real-life problems and have mass adoption. VeChain indeed makes a big difference in the logistics business. However, given the kind of turmoil that the entire cryptomarket is facing where the total market cap has fallen from $800 Billion to just around $200 Billion, no one can give any kind of assurance on the returns in your investment in the cryptocurrency assets. However, stablecoins like Kinesis has a reward yield system that incentivizes its investors for holding, depositing and also referring new users. Hence, the investors always stay on the benefit side even if the market collapses for a short duration. IOTA In simple terms, IOTA is a cryptocurrency which is designed for the Internet of Things. The cryptocurrency was developed to root a new direction to IoT by establishing a standardization called, ‘Ledger of Everything’ which means that the data exchange between sensor-equipped machines would be enabled to populate IoT. IOTA has the potential to make transactions easy. A basic use case of IOTA can be seen in IOTA enabled vending machines. These machines can dispense the items without involving the associated transaction costs. Some other use cases of IOTA are Reddit Chains etc. Technology Behind IOTA Surprisingly, IOTA does not use the traditional Blockchain technology for its design and development. In fact, a new platform called ‘Tangle Technology’ is being used for IOTA to operate on. The Tangle Technology deploys a mathematical concept called Directed Acyclic Graphs (DAG) which resolves both the scalability and transaction fees issues which we face in blockchain based cryptocurrencies. In IOTA, for a transaction to be valid, each node present in DAG Tangle must approve the previous two transactions occurring at the other node. And adding to a note, this process removes the chances of mining and makes the system fully decentralized. Future Potential Keeping in mind the remarkable result of IOTA, there exists a promising scope for it in the near future in various applications and platforms. IOTA would be standing tall and different in the future world full of cryptocurrencies vulnerable to quantum computers. IOTA has a lot of companies that it is working with. Some of them include Bosch, Volkswagen,Fujitsu, Accenture, Poyry and many more. When viewed from a macro perspective, so far IOTA looks to be fee-less, scalable and fast which makes it next to perfect. However, if you own IOTA, the chances of you liquidating it into fiat currency via a ‘debit card’ and buying something from a grocery store is quite low. In order to fill this gap of actually buying something from the street market and becoming the global currency, Kinesis has introduced its Kinesis Debit Cards that enables the Kinesis token holders to exchange their tokens against FIAT currency and simultaneously buy products from a grocery shop, something which IOTA fails to offer. ICON ICX Broad Overview: ICON is a South Korean based company that develops blockchain technology and accompanies the cryptocurrency called ‘ICX’. ICON is a network framework which has been designed to allow independent blockchains to interact with each other. It allows interconnected blockchain networks to participate in a decentralized system which converges at a central point. Technology: ICX token is built on the Ethereum blockchain network. ICON has developed a loop-chain platform that connects different blockchain communities through the ICON Republic which serves as the governing head for the Federation of other independent blockchain bodies. All the communities are linked to Republic through C-Reps (Community Representatives) which then connects to Nexus. C-Reps functions as the portals to the communities to establish a connection with Nexus. And this way the entire procedure is carried out. Future Scope: It is believed that ICON has plans to provide platforms to financial, security, insurance, healthcare, educational industries which can help them to carry transactions on a single network. Thus, ICON (ICX) can be seen having a good time in the coming days. Also, it has been successful in signing a partnership deal with the tech-giant Samsung where it will be using ICON’s own Chain ID for a new Samsung project called ‘Samsung Pass’. Apart from Samsung, ICON has also signed deals with PORTAL NETWORK & W Foundation. However, it is notable that ICON is built on the Ethereum network and is an ERC20 token. Hence, the transaction speed greatly depends on the Ethereum network. Currently, Ethereum can execute 15 transactions per second which is quite low in terms of what ICON (ICX) is currently aiming for. However, to fill this gap, we have Kinesis Bespoke blockchain that offers a whopping speed of 3000 transactions per second. This lightning fast speed keeps the Kinesis token way ahead than ICX token. Enjin Broad Overview The native cryptocurrency of the Enjin Network, the Enjin Coin (popularly known as only ENJ) follows the ERC20 token standard and is used with a smart contract-based blockchain platform. Its typical users include content creators, game developers, and other members of the gaming community, who need to use virtual tokens to manage and trade virtual goods in the gaming world. Technology behind Enjin As an ERC20-compliant token, the ENJ functions in accordance with the rules an Ethereum contract has to implement. It is used on a dedicated platform that is designed to support open-source software development kits (SDKs), applications, plug-ins, and payment gateways. As for its users, they will be able to efficiently participate in developing, launching, managing, and trade content and game-related products on the Enjin Network, without having to deal with the technical complexities. Summary of Potential The ENJ is expected to solve some performance issues in using similar cryptocurrencies on the market today, including payment frauds where goods are not actually delivered, slow transaction processes, lack of ownership of virtual goods, lack of transaction standards, and centralization problems. According to its creators, the ENJ coin, which is based on a blockchain, will create a distributed, trustworthy, and secure framework where transactions can be executed smoothly and quickly with minimal transaction fees. Its autonomous and decentralized system will ensure that all offers and deals will be honored. Conclusion Generally speaking, the Enjin Coin is good. It helps bring the benefits of blockchain to millions of people participating in the virtual goods market. Its creators are working hard to prevent fraud in the gaming world. However, it is still a relatively new project. As such, it is still volatile. This means that you still have to take utmost care and be wise when using it. EOS Broad Overview EOS is considered by many people who are participating in the virtual goods market as one of the best cryptocurrencies to use, supported by a powerful infrastructure for decentralized applications. Basically, the EOS blockchain is used for the development, execution, and hosting of decentralized applications (dApps) that are traded virtually. Technology behind EOS The EOS system is composed of two key components, which are the EOS.IO and the EOS token. As for the former, it functions like a computer’s operating system in managing and controlling the EOS blockchain, with the use of an architecture that enables horizontal and vertical dApps. As for the latter, it is held (instead of spent) by the users to be able to become eligible of building, running, and trading apps, as well as using EOS network resources. While EOS still does not have an official full form, it supports all core functionalities to allow individuals and businesses to create and trade blockchain-based apps. It also runs on a web toolkit for interface development, just like Apple’s App Store and Google Play Store. Summary of Potential While there are already a lot of cryptocurrencies based on Ethereum similar to it, the EOS system focuses on the critical and problematic points of the blockchain. Specifically, it attempts to solve the problems of scalability, speed, and flexibility that often cause transaction processes to slow down, which is a common issue in blockchain-based systems. According to its creators, EOS.IO could also address other problems that come with the ever-increasing size of the dApps ecosystem, such as limited availability of resources, constrained networks, spamming, false transactions, and limited computing power. It is said to be able to support thousands of commercial-scale dApps without hitting performance bottlenecks by using asynchronous communication methodologies and parallel execution across its network. Conclusion The EOS system is very advanced. It is designed to address common problems with standard blockchain-based networks. But like other new cryptocurrency platforms on the virtual market today, it still has some weak points to improve. Also, there is again the exposure to volatility, as users hold the tokens to be eligible to trade virtually. Nebulas Broad overview Nebulas (NAS) is a new generation blockchain and is open for public collaborations for decentralized application (dApp) development. Its adaptability and scalability are the two characteristics that could propel NAS to be one of the top cryptocurrencies, thus giving it enough leverage to compete in the market. Technology behind Nebulas Nebulas is the first cryptocurrency running on a 3rd generation blockchain, thus making it the dominant player of the new platform. This makes Nebulas highly flexible and scalable, even giving a good leverage in future-proofing their code. That could help avoid hard forking whenever some issues come up during scaling processes. Summary of potential Adaptability, scalability and search-ability are three of the biggest potential NAS has to offer. With the 3rd generation blockchain it uses, it can allow the adaption of other codes based from Nebulas. This means that other cryptos can adapt to its platform soon enough. Moreover, it can also act as a blockchain search engine. This can let users search particular blockchains based on efficiency and community strength. Finally, its goal to provide fair incentives to Decentralized Application (dApp) developers is something that collaborators could expect. This means that more developers are expected to come, thus strengthening NAS even further. Conclusion Nebulas (NAS) is a promising cryptocurrency to invest in, especially with its adaptability, scalability and search-ability potentials. It can help with the fluidity of cryptocurrency into this new generation platform. However, it still lacks the value stability that Kinesis or stablecoins hold. NAS is still unpredictable, unlike Kinesis that backs it value with real gold. Sky Broad overview SkyCoin is a full environment system of blockchain technology, and has the goal of endorsing the actual usage of cryptocurrency. Technology behind Sky Sky has its own algorithm, the Obelisk, which uses the web of trust dynamics to spread influence all throughout the network to come up with a consensus decision. The consensus decision depends on each node, by valuing its influence score. The influence score of each node is determined by the number of network nodes connected to it. This depicts the importance of the node to the network. Aside from the Obelisk, Sky also operates its own cryptocurrency which is SkyCoin, its own ICO platform Fiber, a decentralized social media platform called BBS, and a decentralized messenger called Sky-Messenger. Summary of potential Sky focuses its potential on being a full ecosystem of blockchain technology that encourages actual usage of cryptocurrency. Through its unique algorithm which is the Obelisk and some other dApps associated with it, Sky is a promising blockchain technology and could be considered as the most complete one as of today. Conclusion Sky, SkyCoin and the Obelisk is definitely a massive platform that could be considered as a full ecosystem of cryptocurrency and its related technology. Nonetheless, the SkyCoin depends its value on node influence scores, which could change from time to time as well. This makes Kinesis and Stablecoins still a better choice, especially for investors who want clear investments without hassle. Crypto Investment Predictions for 2019 While 2017 had the masses captivated and investing large amounts of capital, 2018 has seen price drops and sagging hopes. While the returns in 2017 exceeded anyone's expectations, a strong pullback was predicted by many. Whether or not this bear market continues from here is the real question many investors face today. Bitcoin's rapid rise and fall exposed many problems, and the developers of the top cryptocurrencies in 2019 took note. When considering the best cryptocurrency to invest in for 2019, factor in the following trends we predict will influence investments: More Pullbacks According to the CEO of Vellum Capital, Eric Kovalak, the price of cryptos will reach new lows before they will rebound to new heights. This includes the biggest cryptocurrencies in the market, including Bitcoin. Kovalak believes that it will be priced below $3,500 before it will find its way back up. However, there are many mixed opinions on the current price of BTC, with some arguing the bottom for the crypto markets have already been seen. Due to Bitcoin based remittances, uncertainty in global economies like Asia, Turkey and Venezuela, and mobile penetration, there will be a surge in interest and the price of bitcoin and other digital currencies. A Flood of Institutional Investors Institutional investors have been waiting on the sideline for the ETF to rule in favor of Bitcoin. According to Mike Novogratz, CEO of Galaxy Capital, once the ETF arrives, "institutional fomo’ will start flooding the market." Another factor is Kinesis, the investment blockchain that provides investors with a safe and reliable alternative. Pegged against precious metals, it provides protection against volatility that may be caused by political instability. The Kinesis Monetary System lets you own real gold or silver when you purchase the digital currency. Your ownership is then digitized and then made available for spending, trading, and transfer. What is even better, the monetary system can be used internationally, ensuring reliability of money around the world. With the recent crisis around the Turkish Lira, the price of gold has significantly increased. Mass adoption of crypto by consumers In January 2019, blockchain technology will be 10 years old. It remains a speculative investment to this day but 2019 could be the year of mass adoption for digital currencies. For this to happen, however, there has to be some triggers. Speculation should become a real utility.People must use blockchain projects in everyday life so they will gain widespread use.Decentralized applications (DApps) must gain mainstream status to promote widespread adoption of cryptocurrencies.Improved payment processing, addressing the issue on the current situation of slow transaction times and high transaction fees.Scalability of blockchain technology with little to no impact on its efficiency. To date, slow transaction times are due to the growing number of users and transaction sizes. This calls for blockchain to grow and have the ability to compete with Mastercard, PayPal, or Visa.Introduction of off-chain solutions that allow users to complete a transaction through peer-to-peer payment channel instead of within the blockchain. This will address slow transaction times. Security will be provided by the parent blockchain. Gold Is Still The Standard Despite the promises and unique functions of many cryptocurrencies, there is still uncertainty in these new markets. Gold has remained the best form of investment throughout history, and the best store of value, especially through times of crisis in politics and economies. Kinesis pegs its value to gold which has proven to be the safest investment in history. Therefore Kinesis stands to gain from the stability gold offers while simultaneously fusing it with the unique features of this cutting edge technology. With the Kinesis Monetary System, investing in gold is no longer the slow process that many older investors are used to. This cryptocurrency is backed by gold and silver and supports precious metals trade. It has three essential assets. Tokens that represent an investors ownership of gold and silver.The inherited system where performance is done.Complete blockchain security that supports investments and paves the way for the creation of new assets protected in a banking system. Most importantly, the Kinesis Monetary System allows thousands of transactions to be completed per second in a completely secure channel. The Near Future Even a decade later, cryptocurrencies are still very much in their infancy. At this time, no one is sure what shape this growing sector will take in the future. Many cryptocurrencies will come and go but the ones that show the most promise, that fulfill their use cases, will stick around for the long term. With any emerging technology, we have to watch how it evolves and how it merges with our everyday life, changing the way we interact with everything around us.

rafal szulczewski
rafal szulczewski

15/10/2018