Cryptocurrencies like Bitcoin may occasionally be referred to as “digital gold”, but this asset type really couldn’t be any more different than the good old traditional gold (Au). Gold is the perennial physical asset investment. It has been used since time immemorial to confer value from one individual to another. It has been used in countless industrial applications. However, as an investment, it’s mostly hoarded in physical safes doing nothing but collecting dust.
Gold used to be money, but it’s rarely used for this purpose anymore. This doesn’t detract from gold’s inherent value, but it also means that gold was always going to have a difficult time adjusting to the information age. To many young investors, gold seemed like an irrelevant antiquity, incompatible with the internet.
Gold entrepreneur, and founder of Karatbars International, Dr. Harald Seiz wanted to change this. Fiat currencies around the world are useful, but they have no foundation in value other than trust in the government that introduces them. If one such government were to fail (as is currently happening in Venezuela), their fiat currency often collapses right alongside. Getting back to gold-as-money was Dr. Seiz’s notion, to give consumers control of the value with which they transacted.
Karatbars International thus sells all kinds of small gold products, quantities for which gold is still useful for commonplace exchange. Nobody is sorry to own a gold bar, but it’s so valuable that it’s not useful for buying anything less expensive than a vehicle. That’s why Karatbars emphasizes products like CashGold. CashGold are tiny gold bars (0.1 grams) fitted into physical currency notes. In the hand, they look almost just like Dollars or Euros in form. But rather than deriving value from the promise of a Central Bank, CashGold has value because of the gold they contain.
This is a great idea, but CashGold were no more spendable online than gold bullion was. Karatbars needed a digital product linked to the value of CashGold to make this vision a reality. This is where KaratGold Coin (KBC) comes into the picture. This cryptocurrency was introduced to the markets in February 2018 at a $100 million ICO.
The asset is pegged to the value of a specific quantity of CashGold. Starting July 4, 2019, KBC will be exchangeable with CashGold at various ATMs. KBC is already spendable online through the K-Merchant app. The official plugin of K-merchant can be currently integrated into Woocommerce, Magento and PrestaShop powered online shops and enables one-click-payments with military-grade security.
It also funds operations on the IMpulse K1 Smartphone. Because KaratGold Coins can be exchanged to real, physical gold, KBC is the perfect digitization of gold. It is the closest we may ever came to making gold spendable online. A digital version of gold with 1:1 exchange power, KaratGold Coin now makes it possible to own gold without being in physical possession of it. It also makes gold instantly purchasable with fiat currencies, Bitcoin, and Ethereum. KBC can be sold for the same. For investors who never before considered gold, for its limited physical characteristics, are now considering it anew with KaratGold Coin (KBC).
Sources: forbes.com / techcrunch.com