The crypto industry is known for being extremely volatile. Whilst some enjoy the thrill of this, others are looking for a stable investment. In comes Karatgold Coin, a crypto that is linked to physically deposited gold or CashGold. Is it a good idea to link cryptos to gold or not?
What is Karatgold Coin?
Karatgold Coin (KBC) is a crypto that is connected to gold in the form of CashGold. It was introduced in 2018 by Harald Konstantin Seiz, a German entrepreneur. He is also a well-known author and has written ‘The Future of Money’ as well as the CEO of Karatbars GmbH that is based in Stuttgart.
The aim of the coin is to give people a cryptocurrency that is backed by hard assets such as gold. A crypto that is backed by gold can be accepted as a form of payment across the globe and should not be affected by ever-changing exchange rates. A person in America can exchange KBC tokens for products in Europe for example, and won’t have to worry about currency fluctuations.
KBC is built on the Ethereum blockchain and allows for the use of smart contracts. It is a fact that for thousands of years gold has been a form of payment is accepted worldwide. It has become known as a solid investment since several banks use gold as a currency reserve whilst both private and institutional investors have invested heavily in gold. Should a country experience an economic crisis, gold has always served as a stable investment since it has great potential to increase in value. Due to its rarity and the cost of mining gold, it has a high intrinsic value. Therefore, there is no default risk in investing in gold.
First licensed crypto bank: Karatcoin Bank
Karatcoin Bank is the first crypto bank in the US. It is a fully licensed and operational bank based in Miami. By obtaining the license, the bank can provide secure services to customers that are backed by KBC. This means that customers can make use of banking services using the KBC coin in the same way one would use any fiat currency. It distinguishes itself from Bitcoin in the sense that Bitcoin cannot be used as a method of exchange. At the moment, one has to transfer Bitcoin into fiat and then deposit it into a bank account. With Karatcoin Bank, users can now bank with it. It can be used for stable savings, investment, and exchange.
Karatgold Bank offers customers an inflation-protected instrument. Fiat currencies are prone to inflation since governments print more money to pay debt. But the gold supply is limited and its value is linked to demand. As the demand for KBC increases, so will its intrinsic value.
Read Bitmart’s blog ‘UK Mint launches own cryptocurrency’.
Buying physical gold at Karatbars GmbH
Since the founder of the KBC token is also the CEO of Karatbars GmbH, one can also buy physical gold. The company released statistics showing that nearly 500 000 customers from 120 different countries have bought gold bars from them in the past. This amounts to nearly $120 million. This may directly result in high market capitalization for the KBC token.
Earlier this year, KBC made headlines when it shot to the moon. If you check out the timeline, it is evident that KBC hodlers may be in for another moon shot. Please note this is not financial advice. At the moment, KBC is trading for $0.042 according to Coinmarketcap.
In conclusion, KBC may be the new golden boy of the crypto industry. Do you think KBC is a good project or not?
To register at KaratCoin Bank please click here