As the word spreads about success stories of individuals earning big time by investing in cryptocurrencies, more and more people are getting interested in acquiring digital assets. Cryptocurrency is a psychologically-driven investment and there has been a growing trend of people immediately cashing out after a successful trade instead of holding the investment for long-term.
The main reason might be the high volatility of the market where one can experience a major gain in one day, only to flunk the next. The rapid changes and unpredictability of the market might be the main reason that will hinder the mass adoption of cryptocurrencies and limit their utility as a form of currency.
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However, a new cryptocurrency has emerged in the market that combines two of the most precious metals – silver and gold with blockchain technology. Due to their scarcity, they are not only the most valuable metals, but also have a significant intrinsic value. Integrating physical bullions into the cryptocurrency market might encourage the long-term holding of assets, so here are some things to know about Kinesis – a cryptocurrency backed by silver and gold.
What It Is
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Kinesis will aim to allocate a 1:1 ratio of silver or gold in its primary currencies KAG – silver, and KAU – gold, creating a system that will be at the forefront of putting intrinsic value to crypto-assets. The main concept is to convert physical bulks of these precious metals into Kinesis’ currencies where the converter’s e-wallet will automatically be credited with the matching number of KAU or KAG. Once it is done, the individual can then exchange it into other cryptocurrencies, use it to purchase goods or hold to it. As a company, Kinesis has partnered with financial institutions to protect the rights of users, as well as to guarantee the legitimacy of the system.
The Monetary System
The system includes components that include:
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Blockchain Network (KBN) – This is the network where the currencies will be transacted and depending on the holder’s preference this is where you can hold, spend, send, or even trade KAU and KAG.
Blockchain Exchange (KBE) – A place for the trade of Kinesis’ currencies with other cryptocurrencies.
Currency Exchange (KCX) – Serving as a portal of physical commodities to the crypto sphere it will be a place where the Kinesis’ currencies are being created and minted.
Commercial Center (KCC) – This commercial platform will consist of goods and services that accept KAU and KAG as payment
Financial Network (KFN) – Serving as an e-wallet, the network can be used for any financial transaction.
The Benefits
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- Less Volatile
Just as people would keep bullions long-term, they will also be encouraged to hold onto Kinesis tokens for a longer time. It can also lead to the formation of a more stable crypto sphere due to the decrease in short-term wealth extractions and lesser price fluctuations.
- Less Risky
Investing in cryptocurrencies might be one of the riskiest moves to make at the moment, leading many to stay away from it. Since Kinesis is backed with physical assets, it might result in more people investing in the market.
- Makes the Value of Gold and Silver More Liquid
Properties, gold, and silver are considered illiquid investments, meaning there are a lot of processes to go through before they can be turned into liquid cash. However, with this new monetary system, it is much easier to achieve this and holders will be able to enjoy the liquid form of their assets with the market providing a reasonable monetary equivalent of it.
- Yield Rewards
No matter if actively or passively, people participating in the Kinesis platform will receive yield rewards of the transaction fees, the amount of which will depend on the size of their contribution.
Conclusion
It is difficult to know what the upcoming financial trends will be exactly, but with its many benefits and a stable system, Kinesis might be the one to bring great change to the current market.
