With the birth of cryptocurrencies, came tremendous changes in the way people carried out their financial transactions. Of all the numerous benefits that cryptocurrencies make available, the most prominent is its ability to put control of money back into the hands of the people.
However, the present cryptocurrencies still have a shortcoming, in that they have a very volatile price, and hence are not efficient as a store of value. This factor has been the major reason for the delayed widespread adoption of cryptocurrencies as money.
As a solution, there is a need for an enhanced cryptocurrency that can have all the advantages that cryptocurrencies have that make them desirable as effective medium of exchange, in addition to qualities that will make them excellent store of value. These two qualities make an ideal money.
In addition to the challenges cryptocurrencies have that hinders their wide-spread adoption as money, there are also challenges that other forms of currencies possess, that have also deprived them of attaining the status of the “ideal money”.
These challenges are as follows:
- Cryptocurrency market challenges
‘An excellent store of value’ is one of the two major requirements for a currency/legal tender to be widely accepted as money. People want the currency they hold to retain the value of the product/service for which they exchanged it.
Cryptocurrencies have done a good job at serving as money, in that it has been effective as a medium of exchange. It has made transactions between parties over the internet much easier and secure.
However, because of its highly volatile nature, it has not been effective as a store of value. Since products are exchanged for money, it means money must retain the value of the product for which it was exchanged. When that money can’t retain that value (because of volatility), it falls short of serving as “ideal money” hence not widely-adopted.
For this reason, cryptocurrencies have been hindered from being widely accepted as money. Businesses who have targeted profit goals, are not willing to gamble their profits on the volatile nature of cryptocurrencies, and hence are not willing to use them as money.
As a solution to this, there is a need for a currency that has the properties of cryptocurrencies in addition to having a stable price.
- Fiat currency market challenges
Saying that fiat currencies have not received wide-spread adoption will be deceiving ourselves. Apart from the fact that they are issued by governments of a country, their somewhat stable values are also part of the reasons for their wide-spread adoption.
For instance, a $20 bill shown in the image will always be worth $20.The monetary value remains the same ($20) forever.
However, fiat can have the same monetary value, but not the same purchasing power value. For instance, if you bought 10 bottles of milk for $20 in 1995, you will not be able to get that same amount of bottles of milk for that same $20.
With the government in control of the fiat currencies in a country, they can highly influence its purchasing power. When they want to increase spending on the side of the people, all they need do is to print more currencies, hence leading to inflation and decrease in purchasing power value of currencies. With this, the people have to spend more money to get the same value.
These show that fiat currencies are not also a good store of value, hence cannot serve as an “ideal money”
- Asset-backed cryptocurrency market challenges
“Bad money drives out good” - Gresham’s Law of Money Source
As said previously, one of the two main properties of an ideal money is its ability to be an effective medium of exchange. When a currency is being withheld from serving this purpose, it can’t be an ideal money.
In line with the Gresham’s Law of Money above, the holders of cryptocurrencies and asset-backed cryptocurrencies (example Tether) value them above fiat currencies, and hence choose to rather hold unto them and spend their fiat currencies. There is no incentive to motivate them to spend their asset-backed cryptocurrencies, hence defeating the goal of these asset-backed currencies serving as the ideal money.
Also, asset-backed currencies don’t give any yield or interest to those who possess them. This has also hindered their wide-spread use as money, as investors prefer to hold fiat in banks, which at least produce some interest over time.
Finally, how secure the payment system of a currency determines its mass adoption as money. Asset-backed cryptocurrencies have had issues with security in times past, as seen in Tether (a USD backed cryptocurrency) which has been subpoenaed by the US government amid secretive circumstances surrounding the US backing of their cryptocurrencySource.
- Bullion market challenges
Bullion market exchanges where precious metals like gold are being traded are known to be manual and inefficient. Bullions are not traded electronically, but rather physically traded through an archaic over-the-counter (OTC). There is no way a financial system can be strictly manual, and expect to be efficient and competitive in this digital age. It’s like comparing a 1995 landline phone with a 2018 android phone.
Also, in order to effectively carryout an effective bullion exchange system, it has to be globally operated. This global operation requires a lot of resources to operate, but the current bullion exchange organizations don’t have these resources, hence lacking global operation.
Furthermore, the bullion market is structured in such a way that the liquidity centers are physical, meaning that various liquidity centers of various localities are isolated from each other since they exist in different locations. There is no form of connection or communication between them, hence leaving room for large price differences at theses liquidity centers.
Finally, because of the physical trading pattern of the bullion market where there are a lot of intermediaries, precious metal producers are hindered from reaching the customers directly, and this has also led to increased cost of accessing these precious metals.
Having stated these challenges that hinder various forms of currencies from effectively functioning as money, it is safe to say that a new way of doing things is desperately needed, a currency that can both be effective as a medium of exchange and also as an efficient store of value. This currency will be the perfect solution to achieving the ‘ideal money’
Kinesis is a revolutionary project that introduces a brand new and enhanced monetary system that effectively handles present day monetary challenges, through a yield-producing currency that is backed on physical gold and silver. The Kinesis monetary system consists of various elements and components (business units) that make up an effective monetary system.
The reasons for the high effectiveness that the Kinesis monetary possesses are the various components (business units) that makeup the system.
These components are as follows:
- Kinesis Currency Exchange (KCX)
This is the unit where investors exchange their fiat currencies for 1-1 precious metal backed Kinesis tokens. The idea is that the fiat you pay to the Kinesis system is used to purchase real gold equivalent to your fiat, and that gold triggers the minting of Kinesis tokens equivalent to the gold you purchased – a 1-1 ratio.
- Kinetic Blockchain Network (KBN)
The Kinesis coins minted above are sent into the KBN. The KBN is blockchain technology upon which the Kinesis coin functions. It enables the coins to be spent, sent, or traded. The incentive based usage of the coins makes it experience continuous usage, hence discouraging the desire to hoard the coins by holding them.
- Kinesis Blockchain Exchange (KBE)
Just the same way the KCX is an exchange for fiat and Kinesis coins, the KBE is an exchange for other digital currencies and Kinesis coins. This is advantageous, in that more investors can now partake of then Kinesis system, whether it be fiat investors or digital currency investors, hence increasing the liquidity of the system.
- Kinesis Financial Network(KFN)
The KFN is more like a direct link between the Kinesis system and the outside financial world. Through Kinesis customized MasterCard and Visa debit cards, Kinesis users can carry out transactions such as payments and remittances outside of the Kinesis ecosystem.
- Kinesis Commercial Center (KCC)
Unlike the KFN that enables the Kinesis user conduct business with the outside world, the KCC is a unit in the Kinesis ecosystem, where Kinesis users can access and pay for goods and services provided by other Kinesis users, only on the Kinesis platform.
All the components of the Kinesis monetary system listed above make the system efficient at providing solutions to the various challenges that hinder the adoption of various currencies as money. This efficient monetary system achieves this through its Kinesis digital currencies namely KAU and KAG, respectively for gold and silver backing.
These solutions are as follows:
- Solution to the cryptocurrency market challenges
Volatility is the major reason why cryptocurrencies have not had global adoption as currencies for global commerce. The moment a currency has a stable price, people will want to use it as a medium of exchange for services rendered, the same reason why the US dollar is preferred above other fiat currencies.
Kinesis digital currency on the other hand has a stable price, by virtue of the fact that it is backed 1:1 with the most stable elements on earth (gold and silver). Since these elements have shown to be stable over a long period of time, meaning the Kinesis currency will have a stable value over a long period of time too, hence making it attractive as a money with a high store of value.
With this stability property of Kinesis, together with the other cryptocurrency benefits it possesses, the Kinesis digital currency will receive mass adoption, both from individual and organizations at large. They can enjoy the benefit of having their monetary value secured, in addition to the yields they get by the continuous usage of the Kinesis digital currency on the Kinesis platform.
- Solution to the fiat currency market challenges
Compared to cryptocurrencies, fiat currencies have done a better job at serving as a store of value. But in the event of an inflation, the value stored by fiat currencies reduce.
Kinesis on the other hand cannot be affected by inflation, in that it is backed by precious metals which are not affected by inflation. Even when the government want to control the fiat system by printing more bills hence leading to inflation, this has not effect on precious metals, because the value give remains the same, hence the value of the Kinesis token remains the same.
This means that Kinesis currencies are a better store of value than fiat currencies, hence better as money than fiat.
- Solution to the asset-backed cryptocurrency market challenges
Just like other cryptocurrencies, asset-backed cryptocurrencies (example Tether) are usually preferred to be withheld by its bearers, rather than spending them, hence defeating the goal of money, which is to be an exchange for goods and services rendered. A currency that has little velocity cannot serve as an ideal money.
Kinesis on the other hand, through an incentive system, motivates bearers of its coins to spend, save, or transfer them, so that its velocity and frequency of usage increases. This incentive system gives various forms of yields to customers, depending on how they use the Kinesis digital currency.
The various yields given are as follows:
A minter is an investor that mints Kinesis token, by exchanging fiat for gold backed 1:1 Kinesis digital currency on the Kinesis platform. The moment the fiat is received at the KCX, it is used to purchase real physical gold, which the triggers the minting of an equivalent Kinesis digital currency.
For initiating this minting process, the investor receives a share of the Kinesis fee for the process. And If the investor further mints more currencies, and uses those Kinesis currencies to carry out transactions, he gets more yields.
A holder is an investor who participates passively on the Kinesis system.
Passively, meaning that he does not use his Kinesis currencies for any transactions, but somewhat deposits them in the system like depositing funds in a bank, and receiving interest on deposits.
The holder gets a smaller portion of the Kinesis fee as his yield.
An affiliate is an investor that introduces other people to the Kinesis system. The more people he introduces to the platform, the more yields he gets.
A depositor is an investor that deposits Kinesis currencies into the system via the KCX. The difference between the depositors yield and minters yield is that the depositors yield is for the initial deposit directly into the Kinesis wallet. It is on this initial deposit that the investor receives yields from, and the continuous use of this initial deposit yields further depositors yield.
- Solution to the bullion market challenges
Bullions (gold and silver) are the most stable store of value, and have served as money for a long period of time. But the fact that its exchanges and liquidity system are manual and non-electronic (physical), makes the bullion exchange system inefficient. This has tremendously hindered its efficiency as money.
Kinesis, although backed by these same precious metal, is a cryptocurrency, hence possessing blockchain qualities, hence making it computerized and internet based, hence enhancing its quick liquidity and ease of transfer. This makes Kinesis currency efficient as a medium of exchange.
Also, because Kinesis is a cryptocurrency, it can be easily accessed globally through the internet, a quality that an ideal money should possess. Rather than carrying out OTC transactions physically, Kinesis currencies can be transacted online, hence having global reach.
ABX is the world’s leading electronic institutional exchange for allocated, physical precious metals. Source.
ABX is a public company that has a 5-year experience and reputation in the electronic bullion exchange industry.
Kinesis works together with ABX to bring about the yield producing precious metal backed Kinesis digital currency.
Kinesis brings this 5-year ABX experience into its transactions with customers, to produce the gold required to back the Kinesis currency on a 1:1 basis. When a customer pays fiat for Kinesis currency on the Kinesis system, that fiat is used to purchase its equivalent of bullion by ABX. ABX the stores this bullion under the account of the customer, and can be transported at any time to the customer when requested for.
The moment this bullion has been set apart, it triggers the minting process of an equivalent Kinesis currency into the Kinesis system. With this, the Kinesis currency is backed 1:1 to gold or silver, meaning that it value is the value of the precious metal that backs it, hence making it an efficient store of value.
An added advantage of this process is that customer now have a means of directly accessing the bullion market, even with little knowledge about the workings of the market. This means that investors who are interested in investing in bullions, will be attracted to the system, to take advantage of the opportunity of purchasing precious metals directly from the suppliers, with the middle men taken away, and hence at a much cheaper price.
The KVT is the fund raising tool that will support the global initial stage of the Kinesis project. This token will not be used on the Kinesis platform, but rather will be sold to investors in return for fiat or other cryptocurrencies, to be used to sponsor the initial stages kinesis system.
Holders of this KVT will earn some percentage of the fees collected on the Kinesis platform.
The Kinetic Digital Currencies are of two types: KAU (gold-backed coin) and KAG (silver-backed coin). These are the yield-producing precious metal backed coins that will power the Kinesis system. They will be used for transactions on the platform, and this usage will in-turn produce yields for the investor.
From all we have said about the Kinesis system, it shows that it has so many potential use case, ranging from freelancers, ecommerce stores, to bullion investors, medical sector, and so on.
- Application and use case for freelancers
Most freelancers who render services online get paid either through online payment mechanisms like paypal or cryptocurrencies. Prior to the Kinesis concept, freelancers experienced situations where the cryptocurrencies they received as payment for their services, due to their volatile nature, reduced in value, and hence they lost their hard earned money.
With the help of the Kinesis system, freelancers no longer have to worry about their currencies reducing in value, and they can also be rest assured that they will still enjoy the other benefits that cryptocurrencies have.
Bill is a freelancer that designs logos for a fee online. He lives in a country where money transfer mechanisms like paypal are inexistent. The only for him to receive payments from his clients is through cryptocurrencies.
He loves the fact that he is now in control of his own money, but feels really bad that he loses money anytime he wants to withdraw his cryptocurrencies, because of their volatile nature.
This situation has really discouraged him in his line of profession.
Upon speaking with me about his situation, I introduce him to Kinesis. After doing his own study on Kinesis, he decides to adopt the system. Whenever his clients want to pay him for his services, all they have do is to convet their fiat to Kinesis currency on the kinesis platform, and then send it to Bill’s Kinesis account.
With this, Bill can either leave his Kinesis currencies on the platform and hence earn holders yield, or he can use the Kinesis tokens to make payments through the Kinesis financial network, and earn yields also.
Bill is now a happy freelancer, and is now motivated to become better at his job.
- Application and use case for Ecommerce stores
Most ecommerce stores have been hindered from reaching a larger market because of the lack of ways to receive payments for goods and services. Prior to Kinesis, most ecommerce stores were shut out from countries that had no efficient e-payment systems, and they chose to avoid the use of cryptocurrencies because of their volatile nature.
With the help of Kinesis, these ecommerce stores can now reach as much people as possible without worrying about loses, since all the ecommerce stores need do accept payments through cryptocurrencies, and then immediately convert those cryptocurrencies to Kinesis currencies, and then store their funds in this stable currency, gaining holders yields as an added benefit.
Bells is an ecommerce store that deals on the sales of wristwatches. They have gotten numerous amount of emails from customers in some countries, asking them to bring Bell’s services to them. They’ve not been able to grant this wish because those countries lack an efficient international payment system.
Upon surfing the net for solutions, Bell’s find out about Kinesis. They do further research and get convinced about the platform.
Through the help of Kinesis, Bells opens up their services to these new customers, who pay for products with cryptocurrencies. Bell’s financial team immediately convert these cryptocurrencies into Kinesis currency, storing them on the Kinesis platform, and hence earning holder’s yield.
- Application and use case for Bullion investors
Bullion investors are people who invest in precious metals like gold and silver. Prior to Kinesis, entrance into the bullion investment sector was difficult and complicated. Also the cost of investing was high because of the high amount of intermediaries in the system
With the help of Kinesis, any individual, whether they are knowledgeable about the bullion industry or not can invest in it, through investing in the Kinesis system.
Hannah is an investor, who is interested in entering into the bullion investment industry. She has once tried, but was swindled of her funds because she had no knowledge of the system, so she was discouraged.
She gets to find out about Kinesis, and then decides to do further research on the system. She gets to find out about the other additional benefits she gets to receive by participating in the Kinesis system. She is filled with hope again, and she partakes in the Kinesis systems. She gets to have her Bullion gold stored for her and available on her request.
Also, she uses her Kinesis tokens to make purchase in the Kinesis commercial center, hence earning more yields for her active participation.
Hannah is now a happy bullion investor.
For a currency to be regarded as an efficient form of money (ideal money), it must fulfil two condition:
- Efficient medium of exchange
- Efficient store of value.
It’s so unfortunate that there is presently no currency that satisfies these two conditions properly.
The good news is that Kinesis – a yield producing precious metal backed cryptocurrency - is coming into the financial system to fulfil these conditions and more, to introduce a new way of doing things, a new and enhanced monetary system – the Kinesis system.
It is only a company that knows where it has been, and where it is that can know where it is going. When a company has a road map, it is an indication that that company has a vision. Below is the road map of the Kinesis system
The quality of team a project has will determine to a large extent the success of that project. A team that has 4 different categories of teams shows you the level of expertise and attention to details that the project has.
The Kinesis team is filled with expertise and experience in various fields relevant to the Kinesis project.
Below are the 4 different teams championing the Kinesis project.
- Executive Team
- Operations Team
- Development Team
- Advisory Team
If you need further clarification on the Kinesis project, just leave a comment in the comment section, and I get back to you immediately.
For more information on Kinesis, visit any of the following channels:
- KINESIS.MONEY WEBSITE
• KINESIS.MONEY WHITEPAPER
• KINESIS.MONEY ONEPAGER
• KINESIS.MONEY YOUTUBE
• KINESIS.MONEY TELEGRAM
• KINESIS.MONEY LINKEDIN
• KINESIS.MONEY GITHUB
• KINESIS.MONEY STEEMIT
• KINESIS.MONEY BITCOINTALK
• KINESIS.MONEY MEDIUM
• KINESIS.MONEY TWITTER
Note : All images not already referenced above were taken from www.google.com (google images)
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