Tuesday, July 10, 2018

Certain gold backed cryptocurrencies could provide the liquidity and yield of paper gold but with the security of insured physical gold ownership

Arguments between paper gold buyers and physical gold owners often boils down to two primary concerns.  The first is liquidity, while the second is the belief that if you don't hold it, you don't own it.


Ironically, believers in the second argument don't seem to carry over these concerns when it comes to ownership of sovereign currencies as the majority of individuals in a given country are more than happy to see their money stored in a bank, and where reliance on electronic payment systems outweighs their use of physical cash.

Yet while there is much to agree upon that governments in the past do not have a good track record in protecting one's assets (particularly gold) from confiscation or nationalization, offshoring it through a reliable corporate entity can often negate this threat.

The advent of the blockchain, along with their offspring known as cryptocurrencies, has brought about a paradigm shift where not only can someone own physical gold that is insured and outside the purview of most government intrusions, but it also eliminates the debate for owning paper gold by allowing for liquidity as well as in some cases the ability to earn a yield on their gold.

The crypto currency market has taken on many similarities to the gold market over time, so it’s a natural progression to merge these two. Mining, like that of the computers that hash the bitcoin blocks, comes from these similarities. 
However, gold lacks the ease of use plus the quick and cheap transactions of currencies that operate on the blockchain. The marriage of these two markets should create a best of both worlds scenario for holders of the Jinbi. 
Jinbi is accomplishing this concept via deals with gold productions facilities in Dubai and Switzerland. When a token is purchased, these accredited facilities produce bullion in response. This bullion is then stored securely and insured with quarterly Bureau Veritas inspections to ensure holders that their gold is safe. 
All of this is then stored and secured permanently on the Ethereum blockchain, transparently, with all the information about the bullion available at any time. 
For any real currency there needs to be a high amount of trust towards the producers for it to be worth anything at all. When faith in a market is lost the value of a currency crashes. This can be seen time and time again all around the world. Jinbi is working towards a highly secure commodity with their token so faith doesn’t need to be a part of their monetary world. 
To accommodate this need they’ve teamed up with trusted and independent parties to ensure the value of their token. 
Produits Artistiques Metaux Precieux or PAMP, out of Ticino. Switzerland, produces the world’s top bullion brand as the most trusted refiners around. At the same time, Jinba’s other gold producer, Kaloti Refinery in Dubai, have an excellent history within the industry and specialize in African produced gold. - Techbullion
In the past gold was primarily used as a store of wealth, and not intended to function as an interest or yield bearing asset like stocks, bonds, or real estate.  But there are companies coming out with a platform and model that changes this by providing a yield simply for holding and owning physical gold in a cryptocurrency model.
Kinesis attaches a highly unique and rewarding multi-faceted yield system that is incomparable to anything available in any capital market. The yield system stimulates velocity and rewards participants for this by sharing the transactional activity with all participants. - Kinesis
In the past, governments held a monopoly over gold and gold production, and thus the need to hold it physically within your grasp was a prudent and often necessary formula.  However with the introduction of the blockchain and decentralized forms of currency that are backed by multi-national gold companies not bound by the strictures of a sovereign government, the only real due diligence one needs to do is to insure that the gold backed cryptos they buy into are trustworthy and reliable, and fully insured by reputable agencies.

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