ZoneBitcoin EditorialIf you have heard of Kinesis Money and you are looking for a complete review on this application, you have come across the right article.
Kinesis Money is an application that may be of particular interest to those who wish to invest in gold and who are looking to do so in a simpler way, with cryptocurrencies. Invest in gold-backed cryptocurrencies then amounts to investing indirectly in gold. Indeed, each cryptocurrency is the representation of a fragment of gold (ounce or gram for example). Thus, the price of crypto follows the price of gold. What is interesting about the Kinesis application is that it allows you to invest in gold, store it and also generate a return on it.
This is the success of this application. This is why we wrote this article to help you better understand how it works.
Thus, kinesis Money is a complete application with different financial services. However, the heart of the application is to offer savings by investing in gold. Indeed, with Kinesis money, you will be able to invest in cryptocurrencies backed by gold and generate returns each month on them.
-> By registering with our link, you earn 1/2 gram of money: Register on Kinesis Money
Kinesis Money Overview
Kinesis Money is a company created and managed by Allocated Bullion Exchange, an Australia-based company that has been around since 2011 and specializes in the physical storage of gold and silver bullion. Thus, the company benefits from the know-how and expertise in the field of the parent company. The founding team as well as the employees are well known and have recognized expertise in the gold industry.
Likewise, the investor can also consult the audits which are carried out every six months and are posted online on the site. It is a solid guarantee and assurance for investors.
Kinesis' great innovation was to want to take advantage of the advantages of cryptocurrency and combine it with the asset of gold.
What is a gold-backed cryptocurrency?
On Kinesis, it is possible to buy cryptocurrency backed by gold. This cryptocurrency is created on a 1:1 ratio to physical gold. This means that each cryptocurrency has a real physical gold equivalent, stored in a vault.
Thus, by using Kinesis, investors own gold and silver without having to worry about storage (and related costs).
As it is cryptocurrency, all transactions are recorded on the blockchain. Everyone can therefore see the different operations. We can then know who owns the gold and follow the operations.
Who is Kinesis for?
Basically, Kinesis is an application sought after by those who want to invest in gold or silver but in a more economical and safer way. It can also allow anyone who cannot afford it to buy gold without going through a bank. Likewise, the company does not charge fees for storing gold.
How to buy gold on Kinesis?
The gold-backed cryptocurrency on Kinesis is called KAU. The silver-backed token is the KAG token.
These cryptocurrencies can be minted directly on the platform. For each minted cryptocurrency, there is a corresponding gold in the company's vaults. Each gram of gold or ounce of silver is then directly held by a person on the blockchain.
To obtain the KAU or KAG cryptocurrency, nothing could be simpler. Just follow the following steps:
- Register on the platform (by following our link, you immediately gain 1/2 gram of silver).
- Now you can verify your identity (all identities are accepted with the sending of a scan of your identity document).
- Now you need to deposit funds. You can deposit from your bank account by making a transfer or deposit cryptocurrencies of your choice. For example, you can deposit bitcoin or ethereum.
- Go to the "Dashboard" tab and you will directly see the "buy" tab. You just have to select the currency you have deposited and the one you want to obtain. Enter the amount you want and that's it! Congratulations, you have just obtained your first gold-indexed cryptocurrencies.
Can you receive physical gold at home?
You should know that it is possible to have your physical gold or silver sent to your home. Shipping service costs 8% fee on 200 ounces. If you decide to receive the gold and silver at home, then your KAU or KAG will then be deleted to respect the actual ratio of cryptocurrencies on the blockchain to physical reserves.
However, be aware that if you want to receive gold at home, you run the risk of being robbed or stolen... This is why in general, when we invest in gold, we prefer to store it in a safe. very specific.
What are the returns that can be obtained on Kinesis?
There are 4 main ways to generate returns on the application. The returns are paid out in proportion to what you have in your portfolio.
->“Mint” yield at 5%.
Minting is the act of creating a new KAU or KAG cryptocurrency on the blockchain. Every time someone mints a new coin, they receive an annual return (in gold or silver) forever.
–> The yield of KAU or KAG holders is 15%
Everyone who owns the KAU or KAG cryptocurrency receives a monthly return in gold or silver for as long as they keep these assets in their wallets. This is the simplest and most passive return to collect on the platform. As soon as you buy KAU, you are eligible for the next yield.
—> “Velocity” token yield at 10%
Everyone is rewarded every time they trade on the platform or spend their cryptocurrencies via the Kinesis bank card.
—> KVT token dividends at 20%
It is certainly with KVT that you can hope to generate the greatest returns of up to 20% of all income generated on the platform. The profits are then distributed proportionally to the holders of the KVT tokens. Dividends are paid in gold or silver each month.
What are the advantages of buying gold-backed cryptocurrencies rather than physical gold?
This is the first question you should ask yourself before investing and using Kinesis.
The great advantage of gold-backed cryptocurrencies is that they are easy to obtain and can be easily transferred, unlike gold.
The other advantage is being able to benefit from an investment in gold which is considered a safe haven. For millennia, human beings have coveted and used gold.
Investing in gold can be a difficult investment as there can be high fees for purchasing and storing it. Likewise, gold can be heavy in a certain amount and is difficult to divide. This makes gold impractical as an everyday currency. This is also why today, and since the end of Bretton Woods, it has become a reserve currency, a store of value.
So, owning gold-pegged cryptocurrencies like KAU is actually like owning gold without the downsides.
The Kinesis payment card and cashback
The company Kinesis recently launched a VISA debit card to be able to spend KAU and KAG for everyday purchases. In this case, KAU or KAG tokens will be converted into dollars, with a fee of 0,22%.
Currently, the card is only available to US citizens. Presumably, the card will be available to citizens in Europe. For the moment, a virtual card is available which allows you to make online payments.
The card is also interesting for its cashback system. Thus, by making payments, the user receives KAU in return in the amount of 2% of their purchases.
What are the fees on Kinesis?
There, we will see the costs of Kinesis.
->Transaction fees : Kinesis charges a 0,45% fee for gold and silver transfers between users.
->Buying or selling fees : there is a fee of 0,22% commissions.
These operating costs enter into the “main cost pool”. These are then the main costs and constitute the main turnover of the platform.
Now, let's see how the company's business model works and how profits are redistributed.
What is Kinesis' business model?
It is important to know that 17,5% is allocated for management, storage, technology and general maintenance business of the company. There is 20% that is reserved for companies or governments that collaborate with the Kinesis company. Companies that use the white label service get 10%. Then, the 52,5% is returned to the owners and users of Kinesis.
Does Kinesis have growth potential? What are its partnerships?
Kinesis has numerous partnerships with companies, investment banks, brokers, pension funds, brokers and precious metals traders. This indicates the company's good ability to manage partnerships. The company also has a partner with Deutsche Börse/ECC which is a recognized European trading platform.
Recently, Kinesis signed a major public-private partnership with the Indonesian government postal service. This would allow Indonesians to be able to pay with Kinesis for the country's postal services. It is estimated that almost 2/3 of the Indonesian population (a global population of 275 million Indonesians) have limited banking access. So, while the country banned cryptocurrencies in 2017, working with Kinesis is not an obstacle. Indeed, gold complies with Islamic Sharia law.
Kinesis is reportedly currently in talks with other countries about creating public-private partnerships.
This is important when looking for exponential growth. Kinesis seems to be on the right track from this point of view.
How to invest in Kinesis to receive dividends?
You should know that it is possible to buy a share of the company in the form of the Kinesis Velocity Tokens (KVT). KVTs will pay dividends (in KAU and KAG) to holders every month. Thus, KVT holders will receive 20% of transaction fees carried out on the platform, paid in proportion to what they own.
It is then an interesting investment opportunity to have a participation in an investment company of international level and with great growth potential.
Kinesis was thus able to raise initial funds selling KVT tokens for $1 each. Those are ERC-20 tokens with a supply limited to 300,000 tokens issued. The company was able to start with around $190 million in startup capital.
Note: It is possible to purchase KVT only on the Kinesis exchange platform. However, it turns out that few people resell them. It is therefore rather difficult to obtain…
Final words on Kinesis Money
Overall, having tried the company for a year, we can say that Kinesis is a company that appears legitimate to us. It is in a niche market with a very interesting approach to investing in gold.
For new generations, familiar with cryptocurrencies, Kinesis and investing in gold-backed cryptocurrencies will certainly be easier to understand. Thus, its growth potential seems significant, from this perspective.
This is not investment advice. Every investment involves risks. Always do your own research before investing.
FAQ
Is Kinesis cryptocurrency “better” than other gold-backed cryptocurrencies like PaxGold for example?
There are more and more cryptocurrencies backed by gold. We wrote an article to find out the 5 best cryptocurrencies indexed to gold. Of course, we can't say which is really the best because they all have particularities and sound generally similar. It depends on what you're looking for. Also, basically, gold-backed cryptos are more or less equivalent. The gold-backed cryptos with the largest market caps are PaxGold and Tether Gold.
However, the KAU cryptocurrency is also very interesting, in particular, because of the yield offered on the platform. Thus, on Kinesis, you can invest in gold but also passively receive gold, which makes it a definite asset.
Why do people want to invest in gold?
Man has been using gold as currency or as a vehicle for wealth for thousands of years. The pharaohs themselves owned gold, which shows how gold is part of human civilization.
Also, far from thinking that gold has a tendency to fade, it remains until today the safe haven par excellence.
Thus, with fiat money which can be continuously printed by central banks, confidence for the moannei tends to diminish. Financial crises like that of 2008 were the context in which bitcoin was born. It is also a form of protest against the monetary system and its propensity for inflation.
This explains why many countries, like Venezuela, Turkey orArgentina are experiencing increasingly difficult living conditions. Inflation rates are among the highest in these countries... Generally, it is during periods of recession that people turn to safe havens like gold. This helps citizens fight inflation and maintain greater purchasing power.
Why invest in gold-backed cryptocurrencies rather than gold directly?
In fact, with the appearance of cryptocurrencies, investing in gold is taking on a new face. In the classic market, buying gold is an activity intended for seasoned investors.
Indeed, investing in gold represents a certain cost and maintenance costs (storage in deposits and safes). Likewise, it is not easy to sell it immediately. Then, we cannot transfer it easily.
It is all these obstacles that cryptocurrency backed by gold allow you to circumvent. Additionally, the system on Kinesis encourages buying and holding with the platform's reward system.
Is Kinesis Money a good option for money transfers?
Money transfers can be a source of significant expenses. The Kinesis platform charges a fee of just 0,45% to transfer your cryptos to another person with a Kinesis account. It is then a good option for emigrants and international workers. The transfer takes place immediately. For other traditional money transfer services like Wester Union, fees can go up to 6%.
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This is not investment advice. Always do your own research. Only invest amounts you are willing to lose.
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