The idea behind Kinesis Money
Kinesis was born out of the idea to bring back physical metals as a sound monetary system. Up until 1971, the world’s main currency the US Dollar was backed by gold. Since decoupling from this physical backing, the Dollar has been printed in tremendous amounts leading to a devaluation in it’s worth.
In order to reintroduce gold as part of the monetary system numerous hurdles needed to be overcome. Gold and silver in their physical forms are not practical or efficient to be used as currency. They are hard to transport, costly to securely store and not readily divisible to spend on everyday items.
To overcome the shortcomings of physical gold and silver as a monetary system Kinesis introduced blockchain technology and a revolutionary yield system.
Blockchain technology allows the physical metals to be represented 1:1 as digital tokens. These digital tokens are the native currency of Kinesis. Kinesis Gold (KAU) represents 1 gram of gold and Kinesis Silver (KAG) represents 1 ounce of silver.
The physical gold and silver these tokens represent are securely stored in 1 of the 12 vaults Kinesis operates around the world. Legal title is held by the holder of KAU and KAG. The system allows the currencies to be divisible into 1, 100,000th ( 0.00001) essentially allowing the transfer of tiny amounts of metal to pay for goods and services. In this regard gold and silver now has the same utility as fiat currency. The addition of debit cards essentially allowing the spending of KAU and KAG anywhere Mastercard is accepted has further enhanced the digital metals portability.
Additionally, blockchain technology allows transactions to occur within seconds and beyond the control of central banks, with a record of the transactions being securely stored within the blockchain. Holding Kinesis currencies prevents devaluation of your money as unlike fiat currency that can be printed by central banks at will, KAU and KAG can only be created by bringing in new gold and silver into the system. Thus the 1:1 physical backing of a valuable asset is central to the creating a sound monetary concept.
To solve the issue of covering costs of the system, and costs associated with the storage and insurance of the metals Kinesis introduced a yield system. Every time a transaction occurs within the Kinesis system a small fee is taken. The fees are accumulated and a portion is used to cover the above costs, with a majority of the remainder being returned to Kinesis users as a reward for participating in the system. The benefits of this are numerous including:
- allowing, for the first time in history, a non-debt return on holding gold and silver
- providing for cost free storage and insurance of precious metals
- providing an incentive to purchase, spend and save in sound money
Check out The Yield System section of the website to understand how this unique system works.
You can sign up to a free Kinesis Money account to learn more. Use this referral link to get started. If you end up being an active user then you can even get a bonus FREE 1/2 OZ SILVER (1/2 KAG) once you complete KYC and meet the $100 deposit and $3,000 asset trade requirements.