While cryptocurrency is a booming market, it is not wise to invest if it is not backed by any physical commodity like gold or silver. That is why when investing in silver cryptocurrency, be sure that it is actually a gold or silver backed cryptocurrency.
But how do all of these things work? Will this be a start of a new era of earning and spending money? Is this a fad that will eventually die in the future?
Knowing more about this form of digital currency will shed light on its many uncertainties.
How to Transact Using Cryptocurrency
You should not think of cryptocurrency as similar to regular money (Fiat currency). However, if you look past their technicalities, they are somewhat similar. It acts as a bank but unlike banks who control the writings of all transactions, cryptos allow transparency and fairness in the market. No need to rely on banks as an intermediary when you can interact directly with another investor.
It may take a while for everyone to grasp the concept of gold or silver backed cryptocurrency. But with enough education and exposure on this matter, it won’t be long before this growing industry takes full effect on a larger scale.
The Role of Physical Gold or Silver in Cryptocurrency
While these precious metals are no longer used in monetary transactions for quite some time, they are bound to resurface in a form of digital currency. Cryptocurrency backed by silver and gold are still available for participation or have an ICO in the market today. They serve as “tokens” or “coins” on the blockchain and once issued, they represent a defined amount of physical gold or silver.
So, when we talk about silver backed cryptocurrency, we are talking about a digital representation of the actual precious metal. This is where Kinesis money comes into play.
The Birth of a New Currency
With the rise of digital currency spearheaded by Bitcoin, more and more digital currencies are emerging. This means more institutions will get into cryptocurrencies as investors focus more on currency-related IPOs. One example is the Kinesis monetary system.
Following the three primary elements such as (1) Gold & Silver, (2) Yield and (3) Blockchain & Cryptocurrency Technology, the Kinesis system facilitate spending while users gain control of their tokens without the threat of volatility. With its aim to become the best cryptocurrency that is backed by silver and gold, Kinesis uses gold and silver as an efficient medium of exchange through blockchain and crypto technology.
Kinesis not only uses physical gold and silver reserved. It also aims to unite the monetary world into a currency that is easy to adopt. In the Kinesis system, 1 KAU is equal to 1 gram of fine gold while 1 KAG is equal to ten grams of fine silver.
If you can find a company that accepts a particular cryptocurrency, then you could spend kinesis backed by silver or gold. Although this is gaining popularity, it will still be a long way to go before everything is finalised. But with the birth of this new paradigm, cryptocurrencies will definitely shift the current monetary system. For more details, check it out at: https://kinesis.money/en/