Why KaratGold is Different From Your Typical Cryptocurrency

Many people think that cryptocurrencies are just a fad. Well, it is true to some extent. It cannot be denied that most cryptocurrencies come and go. Their values may rise, but it could also fall rapidly and investors eventually lose money. However, the main reason why many people are still skeptical about crypto is because of its impracticality

Unlike cash money which can be used to purchase goods and services, there are only a few establishments that accept crypto as payment. Even in the digital world, cryptocurrencies are not widely accepted yet.

Governments and financial institutions are also hesitant to endorse or adopt cryptocurrencies, but many have already acknowledged its potential – especially the technology (blockchain) behind it.

What Makes Cryptocurrency Interesting

Why are people interested in cryptocurrency in the first place? This is mainly because blockchain technology has allowed crypto transactions to be highly safe and secure. Blockchain uses peer-to-peer encryption that is difficult to hack and manipulate. Transactions are also done with only minimal fees – compared to big banks and traditional institutions.

Another reason why some people are drawn to cryptocurrencies is its decentralized nature. It does not have a central server or a regulating body. All it has is its peer-to-peer network that keeps all the transaction records.

Without government interference, cryptos basically follow a different set of rules and are not dependent on the economy or global markets. Because of this, most people think that cryptos are a safer type of currency, and are immune to financial crashes.

How Do Cryptocurrencies Get Their Value

Most of the well-known cryptocurrencies get their value through the participation of its own community. This includes the users that use the cryptocurrency in transactions, miners who secure the network, and the developers of the token.

The value can also be controlled by the actual number of tokens that are issued (supply). Bitcoin, for example, will reach its maximum by 2140 – this is why experts can readily give estimates on its value today and in the future.

As you can see, the value of most cryptos are not based on revenues or income (unlike traditional money). It depends on a communal effort between users, miners, investors, and coin developers as well.

Introducing KaratGold Coin (KBC)

KaratGold International, however, envisioned a cryptocurrency that is backed by something valuable. So they came up with KaratGold Coin (KBC) which is backed by none other than Gold. Gold is one of the most secure long-term assets, and unlike other products and services, it does not lose its value. Traditionally, it is also considered one of the oldest mode of payment.

KBC is the first kind of cryptocurrency that can be converted to actual Gold. Starting July 4, 2019, KBC holders can exchange 100 worth of KBC to 1 gram of pure Gold. CEO and founder Dr. Harald Seiz pushes the payment of KBC as a way of saying that the buyer “pays in Gold.”

Aside from that, another advantage of KBC is that it already has a working infrastructure. While most cryptos are not yet accepted as legitimate forms of payment, KBC already has a platform (K-Merchant) which is plugged to several e-commerce stores so KBC holders can pay using the crypto.

KaratGold is also developing CashGold – a gold-bearing note that is similar to traditional bank notes. This will be released in KaratGold’s own ATMs once KBC holders can officially convert their crypto to gold.