Kinesis: Asset-Backed Financial System

Kinesis is a new blockchain project which is, in a practical and simple sense, reinventing the wheel of the historic, asset-backed financial system.

Kinesis is an interesting take on the application of blockchain technology because a lot of other projects in the space differentiate themselves by distance from any financial system of the past. Embracing and enhancing the old gold standard of money with decentralized record-keeping is a hybrid evolutionary take on the needs of value storage with respect to the monetary system of our current day.

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What are the benefits of having a currency backed 1:1 by gold or silver?

"Internationally fungible monetary system", this is the primary goal of Kinesis, since it seeks to "annul the innate option of people accumulating their cryptocurrencies, which they value on their conventional fiduciary currency" without renouncing them.

That is why one of the main benefits of Kinesis is the security that this system will offer its clients through the investment of their money with symbolic purchases where each unit of fiduciary currency is backed 1: 1 with gold or silver and then attached to a proprietary performance system, therefore promoting trade and creating a platform to share the wealth generated by members of its economy, coupled with Kinesis and its innovative system, which uses the following three primary assets:

-Tokens Kinesis backed by gold (KAU) and silver (KAG); the owners of the tokens own the ingots

Performance: the performance in the Kinesis system is created through spending instead of credit (loans) in the legacy system
-Blockchain: an additional layer to reinforce the storage of value that is already a hallmark of gold and silver, while also making the two assets liquid through digital media (improving their use as a medium of exchange)

How does Kinesis.Money open the bullion market to regular users?

Initially Kinesis tries to interrupt four main market areas:
-Cryptocurrency markets
-Markets of gold and silver

Fiat currency markets
-Marketing of investment assets

Due to the performance system that Kinesis has developed, participation in these four markets through the Kinesis protocol is intrinsically less risky than its traditional counterparts. This is because the expense increases the Net Present Value of the assets that are exchanged.

That is why Kinesis guarantees its regular users the free use of their assets, assigning their ownership of accounts of their gold or silver and thus generate confidence for investment in the bullion market.

Kinesis also has a strong partnership with the Allocated Bullion Exchange (www.abx.com), which in turn is associated with the Deutsche Borse Group, which is associated with the European Commodity Clearing settlement service.

Why does Kinesis inherently have less volatility?

Since Kinesis maintains its system as an investment of money in cryptocurrencies in exchange for gold and silver bullion as a reserve currency, it causes less volatility because today it can still be considered a risky investment to keep reserves in this type of value, therefore Kinesis seeks to maintain the reliability of its system to all its users by guaranteeing the security of its assets by improving the storage of the value limitations of the fiduciary currencies primarily.

How will the know-how from ABX translate into a successful execution for Kinesis?

Kinesis is using the third-party audit and verification system of the ABX quality assurance framework. ABX has been working in the bullion wholesale market since 2013 and has an unblemished record of excellence. The Deutsche Borse Group is an additional partner that is one of the largest exchange groups in the world and could provide instant clientele for the Kinesis Monetary System.

That is why Kinesis will have a successful execution applying the know-how of ABX and thus guarantee a quality system to all its customers.

Kinesis Use-Case

Melanie is a smart investor, with a complex and well-structured investment portfolio. She wants to ensure that she can retire early. In order to do so, she has been investing ever since she finished college. She currently holds cryptocurrency, properties and is diversified across numerous stocks.

Being a big proponent of diversification, she wants to buy bullion. One of the things that attracted her to cryptocurrencies in the first place was that it is not controlled by the governing entity. They are naturally anti-inflationary and grant the user sole access to the funds.

She shopped around for bullion but ran into numerous issues.

-Where to buy it at fair market value
-Where to store it
-Limited liquidity
-Logistical nightmare

This almost pushed Melanie away from investing in bullion altogether, until her friend told her about Kinesis!

Now Melanie can invest in bullion, knowing that it is protected by the inherent security the blockchain provides. She will also be able use or hold her bullion in any way she wants depending on what kind of yield strategy she wants to apply.