What Cryptocurrency is Backed by Gold? KBC Coin Is!

KBC is a cryptocurrency backed by physical gold.  In the emerging cryptocurrency market, there are numerous coins with a wide variety of applications. Becase physical gold has been a store of wealth for 5,000 years, there are a number of reasons and approaches to marrying gold with cryptocurrency. In this article, we provide an overview of the KBC coin.

KBC Coin is issued by Karatbars International. Prior to the cryptocurrency boom, Karatbars was an e-commerce company that bought and sold gold. They had a lucrative optional affiliate program and a “k-exchange network” that listed merchants that would accept Karatbars gold for goods and services.

In the past year, as part of their plans to create a complete financial ecosystem, Karatbars offered the KBC in an ICO that raised 110 million euros. Since then, KBC coin has been traded on the open market at roughly 10 exchanges in addition to their own Karatbit exchange.

Talk about turning yearly income into monthly income…

Prior to cryptocurrency, Karatbars led the world in the sale of small-weight gold, reporting 100 million euros in revenue over 7 years. But since going crypto, they have earned 110 million euros in revenue in the last 7 months.

Now that you are mentally prepared for 10-fold gains, strap-on your seatbelt.

Before moving further in the discussion of KBC, let’s understand where KBC sits in the 5-year vision of Karatbars, shown in the picture below:

The following facts are derived from this picture and other sources:

  1. The 5-year forward projection of earnings is based on 7 previous years of earnings.
  2. 1g of Karatbars gold currently costs $70.00
  3. KBC coin is trading at 2 cents per coin
  4. you therefore currently need 3500 coins to obtain 1g of KBC coin
  5. The CEO has publicly promised that on July 4 2019 100 KBC coin will be exchangeable for 1g gold
  6. On Oct 2019, KBC and KCB coin will leave the Ethereum blockchain for its own blockchain and merge into one coin called GSC.
  7. 4 years later, 1 GSC coin will be exchangeable for 1g gold.

So let’s keep this practical. If you spend $70 and buy 1g of gold, then 5 years from now, all  you will have is 1g gold BUT if you instead spend $70 coin to purchase KBC coin, here is what you can expect based on timeline above:

  1. $70 will get you about 3500 coins right now.
  2. On July 4 2019, that $70 purchase will be worth 35 times $70, or roughly $2,500 because you have 3500 coins and 100 coins = 1g gold.
  3. In 2021 your $70 purchase will be worth $5000 because at this point 50 KBC = 1g gold
  4. In 2023 your $70 purchase will be worth $250,000 because 1 KBC = 1g gold

 

I know it sounds hard to believe…

But it really isnt… we’ve always seen gold appreciate versus the dollar over 20 year periods. Now we have a coin that is backed by an ever-increasing amount of gold. What do I mean by this? It’s simple, 50% of all company profits from all their lines of business are used to buy more gold to back the coin.

So we have multiple forms of economic appreciation all coming together:

  1. Gold will appreciate versus fiat currency because it always has: when one currency has limited supply and lots of industrial uses and the other is only currency by agreement, one will wither away and die and the other will prosper, as 5,000 years of history has told us.
  2. Gold will become a highly sought-after commodity. Karatbars takes 50% of all company profits and buys more gold to back their coin. There is a finite amount of gold and Karatbars will be steadily reducing the supply available to the public.  Reduced supply creates greater demand.
  3. The KBC coin will increase in value for many reasons:
    1. It is continually backed by more and more gold. And on Karatbars’ crypto-exchange there is a market for converting KBC to gold. There is also a market for converting gold to euros or dollars. Because of these markets,
    2. Next, nations with weak and failing currency can acquire KBC in small increments of $5 or $10 at a time. They will flock to KBC as a way lock in their wealth to avoid what we saw in Zimbabwe, the most recent graphic example of what happens when a fiat currency collapses.
    3. People sending money home to relatives will prefer a coin with the price stability of physical gold supporting it over wild swings in value that we see in Bitcoin or the steady decline (and potential collapse) we see in fiat currencies.
    4. Oil will finally be exchanged for gold. Previous attempts to back oil by something other than the dollar led to assassination. But with KBC on the open market, there is no central point to stop it. And no clear-thinking business man would prefer a piece of paper backed by 22 trillion dollars of debt over a digital coin worth more and more gold.

The following video (replete with the errors you get translating German to English and having a voice-over specialist talk about things he knows nothing about) gives you an idea of the sustainable financial eco-system backing the KBC coin:

How to Obtain

You can grab KBC on the open market. If you have a karatbars account, then you can also start a chain of transactions starting with a credit card and ending up with a purchase of KBC on the karatbit exchange. I apologize for the roughness of this video, but you can see the process here:

What Johnnie is doing is

  1. Buying digital cashgold with a credit card (physical cashgold looks like a dollar bill. You can have it delivered to your doorstep. Or alternatively you can convert physical cashgold to digital cashgold).
  2. Sending the digital cashgold to the karatbit exchange
  3. converting the cashgold to USD
  4. buying KBC with USD

Direct exchange between KBC and physical gold is planned for 2019 with the release of our own blockchain if I have my dates correct.

Conclusion

There are many efforts to bring gold to the blockchain. Many. I dont know of many that are directly involved in mining and refining LBMA quality gold. I dont know of many that were involved in gold production prior to getting involved in cryptocurrency. And I have not seen any with as deep an affiliate membershp and compensation plan as Karatbars does. Karatbars has over 500,000 affiliates across the world.

An added advantage of Karatbars is their relation to the United States.  When our government declared bankruptcy in 1933, they issued executive order 6102 forcing all US Citizens to return their gold to the government. However, gold purchased with karatbars is protected by International Bullion laws and is not subject to such recall.

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Author: wizard