KaratGold Coin — Gold backed cryptocurrency, with services that will foster the growth of the ecosystem!
In 1971, the U.S. dollar dismissed the official gold standard and adopted a new financial model created by the Federal Reserve (FED) and the central bank. Although the U.S. dollar was backed by gold before 1971, the government didn’t shy away from printing money which caused major economic downturns and massive inflation.
Specially during the Word War 1 and World War 2, the inflation skyrocketed to a level where the money nearly lost all of its value. Money is trust, and when governments fail to establish this mutual trust, the money loses its value. By dismissal of the gold standard, the U.S. government officially announced that they now have an open license to print money based on a new system called ‘Fractional Reserve’, where most of the money in circulation would be backed by ‘debt’.
The Fractional Reserve system created more problems than it was supposed to solve, and we saw major economic downturns and financial crisis. The 2008 financial crisis was a clear indication that this system isn’t sustainable and sooner or later, the bubble is going to burst.
Soon after the famous 2008 financial crisis due to mortgage defaults in the housing market, Satoshi Nakamoto laid the foundation of Bitcoin – A new kind of digital currency with a decentralized governance model. Bitcoin is a system that separates ‘money’ from ‘governments’ and give the power back to the people. Just like gold, bitcoin exhibited all the properties of money, i.e. fungibility, durability, and portability which made it a perfect ‘store of value’ and ‘medium of exchange’.
Unlike gold or any other collateral, bitcoin is backed by cryptography and mathematics which purely behaves according to the market conditions. This governance model presented a lot of problems, specially the price stability and speculations which made bitcoin a very volatile asset.
Introducing KaratGold coin (KBC)
Open and decentralized market is always prone to speculations which increases the volatility of an asset and decreases the amount of trust. This is why we needed a system that can solve these two problems in an open and decentralized market, just like KaratGold.
KaratGold is a blockchain platform whose currency is backed by real gold, and it aims to create a global infrastructure for its gold backed cryptocurrency with a range of different tools, technologies and services. The best thing about KaratGold is that you can convert your karatGold coins into real gold (which they call CashGold) through their partner ventures all over the world.
According to their website, “The mission of KaratGold project is to create and develop a global infrastructure that will become a bridge between conventional and blockchain-based financial systems. Nowadays, the foundation of the future global structure that will evolve into the stabilizing center of the world economy is being actively laid.”
Some of the key features of KaratGold are:
- KaratBit exchange — A dedicated exchange platform for cryptocurrency and gold trading.
- K-Merchant — A dashboard for merchants where they can accept payments in KaratGold coin all across the world.
- KaratPay — A debit card where you can withdraw the funds quickly and easily.
- GoldVault — A safe storage place where all the gold is stored.
By gold backed cryptocurrency, KaratGold aims to solve the volatility and price stability problem which is one of the big norms in the crypto space these days. With a range of different services like KaratBit exchange, K-Merchant and KaratPay, KaratGold is putting up the necessary building blocks for a new global infrastructure for crypto.
KaratGold has a dedicated currency known as KaratGold Coin or KBC. As of October, a single KBC is traded for $0.022 USD surpassing a total market cap of $84 Million USD which makes it the 55th largest cryptocurrency on the planet according to Coin Market Cap.
The daily 24h trading volume of KBC coins currently stands at around $1.8 Million USD which is healthy sign for the growth and community involvement. If you are an investor looking for price stability, then KaratGold coin should be the choice alongside the stablecoins which are backed by fiat currency.