A digital currency to preserve wealth.

in #bitcoin3 years ago (edited)

Cryptocurrencies have provided a great service in regions that are facing economic strife.

Crypto-aware residents of a country that faces economic decline try to exit into a number of established coins. WebMoney is an example of a common path they utilize to acquire Crypto. This was witnessed in Turkey when the currency began to decline and has been witnessed in Venezuela for an extended period of time.

Such moves have helped residents of dismayed economies quickly secure their wealth from dismay as hyperinflation swiftly devalues the local currency. Digital currencies, though, have served primarily as a means of preserving and storing wealth. Some shops in Venezuela have begun accepting Bitcoin but the volume of such participants is low and the decision came after many months. The cause for this is that cryptocurrencies are in a nascent stage and only a small portion of the world understands them.

There is, however, one asset that is unquestionably associated with value all across the globe: gold.

The Next Step for Digital Currencies

Bitcoin’s ability to provide a store of value has been accepted by many. However, there’s a need to affordably convert the wealth stored in Crypto into a spendable form.

Kinesis is a new monetary system based on the New Gold Standard.

Gold is globally associated with value and it was once the primary means of payment. However, it was heavy, difficult to divide, and a burden to transport. The Kinesis Monetary System aims to create a New Gold Standard, one where gold is available in a tokenized form. Gold-backed Kinesis coins are emitted when a person mints them by using fiat or cryptocurrency to buy them and then have them deposited in a network of globally accessible vaults.

Those who mint the KAU coins can then sell (on exchanges), hold, or spend them. The minting process is incentivized as the person minting the coins is given a portion of the network’s fees.

These fees are derived from the transactions that are based on KAU coins, which can be transacted digitally on a wallet-wallet basis or via cards. Kinesis exists on a fork of the Stellar blockchain and can thus not only scale its transaction flow, but also benefit from Stellar’s low transaction costs. The result is that payment card fees which hover at about 3% and reduced to just 0.5%.

Access to Spendable Gold

The people living in dismayed economies have already proven to have access to cryptocurrencies. The Kinesis Blockchain Exchange (KBE) will give them the option to move from those cryptocurrencies into KAU coins. People may choose to retain their wealth via other Bitcoin or gold-backed KAU coins, but they will have a near-instant opportunity to convert their Crypto in KAU when the time comes to spend their wealth.

The KAU coins can then be converted into fiat at will through the Kinesis Currency Exchange (KCX). Though, this option only becomes rational once the people in a dismayed economy exit into a better one. Meanwhile, Kinesis coins remain backed by gold no matter where the person holds them.

The benefit the Kinesis Monetary System provides is the fluidity of the gold-state of the currency; KAU coins can be seamlessly converted to and from fiat and cryptocurrencies.

Thus, not only do people earn near-instant access to a currency backed by something that has been associated with value for millennia, but they also get the ability to spend it. Thanks to the Stellar blockchain, KAU coins will be movable quickly and at low costs; thus, people in dismayed economies will be able to utilize major cryptocurrencies to quickly access a more spendable cryptocurrency.

The factor that makes KAU coins valuable is that they are backed by physical gold.

While access to physical gold is tough in a dismayed economy, a digitalized form, only emitted when physical gold is deposited into a vault by any person (anywhere), of gold will be made widely accessible by minters who would be incentivized to mint gold to then sell it onwards on the KCX and KBE.

Thus, physical gold will be made highly accessible, liquid, divisible, and convertible between both major Crypto and fiat.

The best factor is that these benefits would be available without bias; people across the world will be able to access KAU coins due to the fact that minters are incentivized to sell for both Crypto and fiat. Thus, merchants, in economies of any state of robustness, will have the ability to accept payment in KAU as not only are the transactions cheap and fast, but they are convertible into any Crypto and fiat.

While residents of weak economies are an early market for KAU coins, gold-backed Kinesis coins just as easily accessible and useful in other countries.

Kinesis is being launched by ABX, a well-established online bullion exchange which already has much of the infrastructure needed to make Kinesis a reality. Further development of proper blockchain integration in underway and a demo functionality of minting is available. The team is leveraging their network to grow the usability of KAU coins across merchants across the world.

The fact that KAU coins can be converted at any point into fiat (and Crypto) make them equivalent to payments of those currencies. The differentiating competitive edge is that KAU can be transacted at a fraction of the fee offered by current payment networks.

Essential Links

🌐 Website: http://bit.ly/SteemKinesis
💡 Whitepaper: https://kinesis.money/documents/translations/kinesis-whitepaper-summary-en.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=4502836.0
💻 Telegram: https://t.me/kinesismoney

Connect with me:

My Telegram: https://t.me/HatuSSS


First of all great post. So in Venezuela they have been using the cryptocurrency Dash as main crypto to buy food in the streets and little houses that accept that. I've friends in that country and I use that to send help to them. Just another point... The crypto name Petro used by the governor is an copy of dash's white paper in the beginner.

Thank you for pointing that out.
I referenced these pieces (1 & 2) on the hyper growth of Bitcoin usage in Venezuela.

But yes, the country had a usage growth in all major Crypto.

And yet another creative and interesting publication @hatu

You know you to keep your readers attention :)

Cryptocurrencies have provided a great service in regions that are facing economic strife.

Sometimes I've impression that countries like Venezuela are our "labs" and people living in those countries and also their goverments are "rats".

My impression is that developed countries are watching and learning and those "rats" are real pioneers in that industry.

I can only imagine what will happend with crypto if trust towards EURO will start falling appart. Which is a real threat right now.


So just out of interest where would these gold stores be, who would hold the keys and will they charge to store it.

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The gold is owned by the KAU holder, and it will be stored in vaults within ABX's network. ABX is already an enterprise provider for gold trade and they have an established network.

The storage is free; it will be covered by the transaction fees of the currency. Still, the transaction fees would be less than the ones charged by existing payment cards.

I have a bad feeling about cryptocurrencies, since they have been devaluing on a large scale.


You may have noticed that security tokens are doing rather well at this time. That's because they are backed by an intrinsic value, and the same would be the case with anything backed by gold.

dear @softuno84

Indeed @hatu has a point. Security Tokens are doing quite fine and once most of previous ICOs will die, then we should all expect stronger recovery. This is needed. Current space is way to overpacked with some shitty projects. Faster most of them die = better.


Bitcoin is yet a big globalization, and if this project is structured in accordance for countries where their economy is really bad, then Gold will be on the top fighting a possition like Bitcoin.

Including Silver....

People around the world could be immerse and could have access.

If exist any fee for any tansfer it will be cheapar at the same time.

That´s pretty cool, what about the other coins, like Dogecoin, it could be great....

Nobody sees this coin, Why...? Everyone think in BT, ETHER, and others but nobody sees the potential about DOGE....

The KBE will support most top Crypto, including DOGE if the community's will is strong enough.

That´s really cool to know ...!!!

i don't mean to be a skeptic.. just awed. it's 24k gold? as in the one used for rings, etc?

This will be 24k gold. On the other hand, rings are not 24k gold as gold in pure form is too soft. Small amounts of other metals are added to gold to create rings and so the typical ring is between 18k to 22k gold.

You can also buy GOLD on Bitshares.org

Kinesis currencies are not just gold or merely tokenized gold.

This gold is a currency, spendable across any point-of-sale system in the world; also, interconvertable between fiat and Crypto on different CEX.

Hopefully someone will come along and make crypto so easy a cave man can do it. the average jo I talk to on the street has no desire to get into crypto because its to hard for them to understand. if it could be as easy as using paypal. that would change the game.

That's why Kinesis has forked Stellar to integrate the blockchain into its existing infrastructure.

While people will use a typical payment card, the backend will be on a blockchain. The user experience is sustained at quality levels while people still enjoy the benefits of Crypto and blockchain.

According to the unusual behavior of this digital currency, it is estimated that the measure could increase the current value of the Bitcoin and take it to 15,000 or 20,000 dollars since 45% of the Venezuelans could begin to opt for this much coveted currency, which would motivate Bicoiners from other nations such as China, South Korea and Russia among others in the world to significantly increase their investments in that currency.

I won't speculate on the price point it would allow BTC to reach, but KAU should have a positive impact on digital currencies.

You are joking, are you serious? It just sounds like another stable digital currency, such as USDT.

Tether owners do not own the dollars that back Tether. The gold that backs KAU tokens is owned by the KAU holders. On top of that, gold, unlike fiat, appreciates in the long run.

On the utility aspect, KAU is spendable at any point-of-sale system; since when can Tether do that?

Muy buen post, acá en Venezuela se están usando las monedas digitales para el intercambio de bienes y algunos servicios, pero aun no se ha masificado el uso de ellas, solo los mas expertos las utilizan; el gobierno por su parte creo una moneda virtual llamada Petro, la cual esta anclada al valor del barril de petroleo, pero por el solo hecho de venir del gobierno hay poca confianza en ella, yo personalmente estuve buscando alguna casa de cambio que la acepte pero no encontré. Lo cierto es que las monedas digitales son una vía de escape para enfrentar la hiperinflación que estamos viviendo en Venezuela y una vía para evitar los controles de cambio impuestos por el gobierno.
Saludos desde Puerto la Cruz, Venezuela

I expected that the usage would be dependent on the limitations of people's knowledge. Thank you for giving evidence from your personal experience that people in Venezuela certainly do flee towards Crypto in order to shield themselves against the hyperinflation of the Bolivar.

Hola @edlopez23! Los que conozco en Venezuela hacen uso de la criptomoneda Dash para hacer compras de alimentos. Los envío veces ou otra para apoyalos. Hay aqui en SteemIt comunidades de venezolanos que le podrá apoyar bajo eses temas de cambio y uso en Venezuela. Se están por aqui hace mais de 2 años. Steemit Venezuela!. Hay varias tag que podrás hacer la busqueca. Hay muchos venezolanos por acá. Que te vaya bien!

So as i understood this the KAU coin is reflecting the gold Price? Or am i wrong

It is backed by gold, but is not just tokenized gold.
It is spendable.

Consider it as the new Gold Standard: gold as a liquid currency.

Ok thanks for the explanation.

You can also buy GOLD on Bitshares.org @hatu

As I mentioned above:
Kinesis currencies are not just gold or merely tokenized gold.

This gold is a currency, spendable across any point-of-sale system in the world; also, interconvertable between fiat and Crypto on different CEX.

Thats kinda interesting....

This needs to ne shared with the world.


Thank you for sharing you always share great information :)

You're welcome.

Honestly, there's many places in Venezuela where you can pay with crypto, including dash, btc, bch, and even steem because there's actually a huge community of steemers here. It's always interesting to understand the functioning of crypto a lil better. People here and around the world are going crazy talking shit about Venezuela's Petro, since it's backed by oil, gold, diamonds and gas. It looks like a ghost coin to me, and I can't seem to understand it very well. But if there's other functional cryptos backed by these kind of things, I don't understand why it wouldn't work.

Except nothing works here. Which is why crypto is so important for countries like these, where our fiat is not valuable at all. AT ALL.

This is spot on and cores on what I intended to address in this piece. While fiat is specific to certain countries, gold is associated with value across the globe. If a Stellar fork provides a means to transact and spend gold, then it can easily attract an early market from countries with weak fiat.

Of course, KAU can be used anywhere, but it has a ready market.

Me ha gustado mucho este artículo, puesto que estoy al tanto de las criptomonedas para cuidar mis finanzas, si bien es cierto que estamos en una sociedad muy cambiante también es cierto que debemos poner todo de nuestra parte para mantenernos actualizados.

Esa es una buena mentalidad.

very informative.

Glad to hear so.

My opinion In the world of cryptomillionaires thats diversification and it should be worrying for wealth managers beginning to eye those whose high net worth has risen along with the price of bitcoin Though financial advisors have converted plenty of wealthy tech founders and employees into loyal clients over the years the largely young and male participants in the cryptocurrency gold rush seem decidedly uninterested in traditional banking and traditional money management

They do, and you actually make an interesting point.
While gold was a standard commodity of past generations, it does not appeal to the young ones. However, a tokenized form of it that can be expensed and rewarded (upon transactions) could appeal to them.

Yes i agree with u thqnk u :)

I wish I had waited to buy in! But I believe they are going back up!!

This needs to be shared with the world.

i didn't know there such thing as this

wow this is very amazing, unfortunately in my country it is still ordinary about crypto problems

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Such move really help developing countries when crypto price was high but now the price looks shambow, it doesnt impact much. Hopfully crypto price will rise again.

Trust me on this, I live in Venezuela and even with crypto being like it is now, it helps an incredible amount of freaking LOT.

I have no doubts about that. Crypto depreciation is no where close to that of the Bolivar.

However, KAU will certainly provide an easy means of spending the holding. Thanks for sharing your personal experience.

Ok that's your. You guys are on the furtune side but for we in Nigeria, it's nothing to write home about. Almost all my friends I started out on steem have given up.

When I started many of my friends and family members joined too. 90% of them are gone, I almost gave up too once or twice. But just like everyone told in the beginning: the first 3 months are critical, almost no one survives.Just like in anything in your life, you can't give up on things just because it gets rough.

But truth is Steem isn't for everyone. If you don't create good content, if you're not a web developer, a nerd, a geek, or whatever, you obviously aren't going to make it. Most people want to make steem out of a picture of the coffee they had in the morning, and that's not how this works at all. You have to unerstand a little bit of how the community works, otherwise, you're lost.

Yo are absolutely right. But what really matters is how engaged you are.

That's a misconception.
I can explain in detail on Telegram as this is drifting away from the topic of the article.

Telegram: @HatuSS

The thing with gold is that it appreciates in the long-term. It does not share price cohesion with Crypto or even fiat.

Oh really? But the downfall of BTC is what actually brought steem price down and other alt-coins

Again, the prices of STEEM and BTC have nothing to do with the price of gold.

The world’s largest cryptocurrency rallied as much as 11 percent to start the week.
Bitcoin has still fallen more than 50 percent in the past three months and is down 75 percent this year.
Monday was also the one-year anniversary of its all-time high near $20,000. It has since dropped 83 percent, according to data from CoinMarketCap and more info coinhash

Crypto Currency is the way

A good read you have here.

Informative...always following what you are sharing here.

You've received an upvote from @dailyexpress
@dailyexpress channel is dedicated to the growing Southeast Asia steemit news. To support and promotes new and promising original authors, original and good real content from Southeast Asian Nations Member Nation. Indonesia, Thailand, Malaysia, Vietnam, Singapore, Philippines, Myanmar (Burma), Cambodia, Laos, Brunei. And most probably from Inanam.

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Interesting article. But, let me also share this one with you guys. What can you say about those cryptos who are setting up a trading competition/giveaways such as DAI on KuCoin?

Here's the link of it: https://news.kucoin.com/en/dai-dai-trading-competition-win-182-mkr/

Since you said that "Cryptocurrencies have provided a great service in regions that are facing economic strife." Do you think these kind of promotions will gonna help one's economy to rise up as well as a cryptocurrency to be known fully and accepted by the whole community?

Such competitions are extremely common...

Woah! Kucoin have already distributed the rewards during DAI's trading competition to those who won the competition.


all you guys here have GC?


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What's your opinion about this trading competition? they'll give a brand new Maserati. I want to join but i dont want to lose my money again.
give some tips.

This trading competition is about to end. and it will end later this day. for those people who reach top 200 keep trading so you will remain on your spot. https://news.kucoin.com/en/dai-dai-trading-competition-win-182-mkr/

My opinion In the world of cryptomillionaires thats diversification and it should be worrying for wealth managers beginning to eye those whose high net worth has risen along with the price of bitcoin Though financial advisors have converted plenty of wealthy tech founders and employees into loyal clients over the years the largely young and male participants in the cryptocurrency gold rush seem decidedly uninterested in traditional banking and traditional money management........