Cryptocurrency has made amazing in-roads in the financial sector of late, it has moved from a dark web payment method to the next digital darling. While the technology is still very much in its infancy, discussions have already begun on whether this can be a viable alternative to centralised fiat currency.

I am personally very bullish on the application of cryptocurrency and you can read more about my argument for blockchain as the future of money where I take on the major arguments against the adoption of cryptocurrency. One of the key arguments against cryptocurrency is that it holds no intrinsic value and we're building an economy on an unknown substance in the form of digital code.

Crypto Adoption in baby steps

Make no mistake the world is not going to simply migrate from fiat to crypto overnight and there is going to be a long educational drive in order to showcase the value of peer to peer transactions. One of the ways in which to get investors into the market and provide them with assurance is to create a hybrid solution of old monetary policies people can all understand and use this as the underlying asset from which that specific cryptocurrency is run.

One way to do this is through stable coins but these are still subject to inflation since it is pegged to centralised fiat currency and would effectively adopt all its properties. While this is a great option to facilitate trade it's not a long-term solution we can rely on.

The other option is to tie it to a something we can all agree has value, such as precious metals like Gold and Silver and this is where project Kinesis finds itself.

A brief introduction to Kinesis

How does a hybrid cryptocurrency offer something different?

Kinesis will change the way users interact with cryptocurrency by offering investors the ability to tie their investment to real-world assets like gold or silver. The tokens are backed at a 1:1 ratio and allows you to digitally invest in a bullion market which has long been a market for only the rich to store their value in and safeguard it. When investing in precious metals which always have a demand you can now have security that you're money will not lose value over time or in an instant based on market trends.

Kinesis ensures the security and validity of its operations by utilizing the third-party auditing and verification system of ABX’s Quality Assurance Framework who have been working in the wholesale bullion market since 2013.

Use cases

Even thought Kinesis transactions are handled on the blockchain and their value is based on their real-world holdings of Gold and Silver it doesn't mean the user experience changes from what consumers are already familiar with. Kinesis users can purchase goods and services both locally and internationally in a fiat currency of their choice using their Kinesis debit card. Which makes it great for ordering products from overseas or when travelling. Since their holdings are tied to gold or silver they do not have to deal with forex change rates that could become costly with fluctuations.

What I think of Kinesis

While I personally do not feel the future of cryptocurrency lies in it being tied to something of physical value I do think the concept is an interesting compromise. It could serve as an ideal stop-gap for the use of cryptocurrency and allow users to get used to its uses and properties.

As education and adoption increases and transaction volumes improve we could then create a strong consolidated market that has less volatility and more practical uses. Which is is exactly what the industry needs at this point.

Would you like to know more about Kinesis?

If my review has peaked your interest in the project and you would like to do more research then check out the following resources.

• Website
• Whitepaper
• One Pager
• GitHub

This is my entry for the @originalworks writing competition found here

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