Kinesis Monetary System is positioning itself to be one of the most revolutionary monetary systems in the history of the world. This company blossomed out of the Allocated Bullion Exchange, an Australia-based gold and silver physical bullion storage company founded in 2011. Kinesis combines the power of blockchain with physical gold and silver bullion, creating a potential alternative to long-held fiat currencies such as the dollar, euro, pound, and yen. If Kinesis is successful, early purchase of Kinesis Velocity Tokens could be comparable to buying Google or Facebook stock in their first few years.
The premise is this: An investor can exchange cash or cryptocurrency for physical gold or silver and have it stored in Kinesis’ privately allocated vaults in New York, London, Sydney, Hong Kong, Singapore, Dubai, Lichtenstein, or Zurich. The investor then has the ability to store, spend or transfer gold or silver to other Kinesis investors (members). Each transaction is recorded using the blockchain as a public ledger, thus keeping track of who actually owns the physical gold and silver in the vaults. The Kinesis vaults are audited on a semi-annual basis by an independent auditing service that has been in business for over 100 years. The Kinesis exchange, therefore, provides a digital currency, backed by precious metals, that investors and consumers will find is very liquid, secure, and in units that work in everyday transactions.
An exciting thing about this system is that it rewards users for keeping, using, and transferring gold and silver within the system. The fee on each transfer is 0.45%, about half of which will be redistributed to all the users of the platform. So instead of paying a vault company to store your gold or silver Kinesis will pay the user. The other half of the fee is split between large partners and overheads (storage, insurance, company costs, etc.). The Partner yield is particularly important in motivating partners to encourage usage among their user bases.
Kinesis currently has a public-private partnership with the post office of Indonesia. The Post office plans to start paying their employees in Kinesis gold (KAU) and to use the Kinesis system as their primary bank. At this time, it is estimated that two-thirds of Indonesians don’t have a bank account or are underbanked). Kinesis investors believe a system like this can provide value to individuals and economies which have limited access to traditional banking institutions.
Potential major markets I predict they could break into, disrupt, and take a major dominant market share over the next decade:
1. Physical gold and silver bullion storage. Currently, it costs about 0.5 to 2% annually to store your bullion in a vault. This is the primary disadvantage to owning physical gold and silver, it pays no yield and costs money to store large quantities. With Kinesis you can earn a small yield on your gold and silver which will be competitive in a world of near-zero to negatively yielding bonds. There is no fractional/derivative aspect like the COMEX or unallocated bullion dealers.
Each gram of gold or ounce of silver is legally titled and held by a single person on the blockchain. A token is not created in the system until they buy and store the metal in the Kinesis vaults. The tokens are easily divisible into smaller fractions similar to bitcoin. This plus the tight trading spreads on the gold and silver in the Kinesis system make them viable to be used as alternative currencies.
2. International money transfer/remittances. Kinesis Money charges a flat 0.45% fee to transfer your digital gold and silver to anyone in another country with an account. This would be an ideal system for international workers from less affluent countries looking to send money back home to their families. No forex fees. The transfer happens immediately. They report their system can handle ~3000 transactions per second so there is a significant ability to scale.
Typical Western Union or Paypal international transfer fees are about 5% plus up to 6% forex conversion and another 2–3% if you paid via credit card.
The yearly remittance transfers across the globe are quite substantial.
3. Credit card processors. Visa, Mastercard, AmEx, and Discovery. The way their business model works is that they charge the business 1.4–3.5% of your total every time you use a credit card machine. Businesses eat this cost so it is not passed directly on to the consumer, but consumers pay this via higher prices.
The way the Kinesis Visa card currently works is that you sell some KAU/KAG and “top up” your card with money. Doing this on the Kinesis exchange will cost you 0.22%. Visa is likely still charging something as well, but paid by the merchant.
to get a gift
4. Banking. Indonesia has about 270 million people. Indonesia has a young population and it is estimated that two-thirds do not have a bank account or have very limited banking access. Now if you have a smartphone you can use Kinesis as your banking system. Kinesis is currently launching a public-private partnership with the government of Indonesia to use as the main payment system for the entire postal service in Indonesia. They are building a gold and silver vault in Jakarta to service the country’s needs. Kinesis is reportedly currently in talks with other countries as well. I estimate that there are at least a billion people worldwide that don’t have a formal bank account but do have a smartphone.
5.Increasing investment demand for precious metals. Most people have no allocation to gold or silver in their personal investments. The average US investor only has about 0.5% of their total investments in gold and silver. If this increases to a modest 5% that would be a 10x increase in demand for the metals.
How would you bring in cash while utilizing Kinesis?
Minters Yield: 5% of expert charge pool
This is for individuals who carry cash into the Kinesis environment, a cycle called stamping.
Contributors yield: 5% of expert charge pool
Need to get paid everlastingly on the underlying measure of cash or crypto you saved and transformed into silver or gold in the Kinesis framework? You have fourteen days to secure your investor’s yield which will be paid in unendingness.
Referrer’s yield: 7.5% of the charge’s created by those you straightforwardly allude
Have a gathering of loved ones who you think might want to utilize genuine cash to execute with? Kinesis has an incredible reference framework where you will get a level of the charges that your references create. This is definitely not a staggered advertising framework as it just applies to individuals you straightforwardly alluded into the framework. This makes it considerably more of a level reference model.
Holders Yield: 15% of expert expense pool
The individuals who hold their gold or silver in the Kinesis vaults will get 15% of the cash from the expert expense pool. A lot of this is determined by taking your level of how much gold and silver partitioned by the aggregate sum that is put away. This way your gold and silver procures a profit rather than you paying the average stockpiling charge.
KVT yield: 20% of expert expense pool
So how can one best benefit from this should Kinesis turn into a significant achievement? From my exploration, the most ideal route is to secure KVT (Kinesis Velocity Tokens). The KVTs permit you to take part in the organization’s prosperity by getting a profit of gold or silver. They basically work comparatively to a nonvoting portion of stock that will deliver a ceaseless month-to-month profit dependent on the measure of silver and gold that gets exchanged across the stage. Kinesis began the organization by selling KVTs for $1000 each raising an underlying $200 million in fire up capital.
There are just 300,000 KVT tokens that were at any point made making them fixed like bitcoin. You will accept your # of KVTs/300,000 x .20 of the expert charge pool. In the event that Kinesis can catch 1% of the all-out gold speculation market over the course of the following, not many years a solitary KVT could payout a huge number of dollars in profit yields every year.
Why you should begin utilizing Kinesis today:
Utilizing Kinesis cash will permit you to by and by utilizing money not constrained by national banks or governments. You will actually want to protect your own abundance from major political unrest, normal/artificial fiascos, or whatever other eccentric financial instability that may happen in your nation of origin. Holding KAU or KAG can enable you to go to another country and have abundance put away there and pausing.
Getting in now permits you to turn into an early adopter of the combination of things to come of significant worth exchange (blockchain) and the most believed cash supply across lines and landmasses for the past 5000+ years. The Kinesis stage eliminates the conventional issues of utilizing gold and silver as cash, including: helpless distinctness of actual metals, transport, and capacity concerns. You even get the reward of getting paid a little yield, permitting you to build your abundance after some time as opposed to having swelling gradually strip away your purchasing power.
Each fiat money in history for the most part falls flat after it is decoupled from a gold or silver norm. This is on the grounds that lawmakers think that its simpler and more politically helpful to make new cash than increase government rates. As you can see underneath fiat monetary forms have times of strength and times of quick debasement. When individuals lose confidence in the capacity of cash to hold it’s worth they normally attempt to quickly dispose of the money since they realize it’s worth will fall rapidly. In the event that this gains out of power it can prompt out-of-control inflation.
Concluding thoughts
Let’s get some discussion going on this! What are your reactions and thoughts?
Let’s hear the good and bad. Please attack my thesis on why this could be a good investment.
If you have never used any sort of blockchain application before this will seem like a very strange world at first. This took me a few days to fully wrap my brain around what they are trying to do here. I would love to hear your personal experiences of using Kinesis.