With KaratGold Coin (KBC) Gold Enters the Age of Cryptocurrency

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Gold is a symbol of antiquity. It has been hoarded by kings since time immemorial, and has been found in ancient archeological digs from forgotten societies and treasures. Today, people invest in gold for much the same reason people did in previous eras: it’s useful, it’s valuable, and this is never going to change.

But gold isn’t very easy to use online. Sure, you can buy gold and sell gold on the internet, but you can’t use gold to pay for an Amazon purchase. This gulf between gold, the ancient asset, and the marketplace of today, the internet, seemed to be impossible to bridge. However, blockchain and cryptocurrency have changed this forever.

With blockchain, physical assets can be represented by tokens. While that might not seem like much, blockchain also makes it impossible to forge or replicate any one of these tokens. When a blockchain token is used to represent ownership of a physical good, he who owns the token owns the underlying asset. This system has been used by a company called Karatbars International to create digital gold on the blockchain, linked to  real gold held in its reserves. Let’s dig a little deeper to understand how they pulled this off.

The digital asset in question is called KaratGold Coin (KBC). This cryptocurrency was brought to market through an ICO (Initial Coin Offering) in February of 2018. Karatbars International raised $100 million through its ICO. They were able to convince so many investors to take part in the ICO by linking the value of KBC to real gold reserves owned by the company. Karatbars International has numerous gold products it has been selling since 2011. The KaratGold Coin is an Ethereum-based asset exchangeable for real gold. In essence, it is tokenized gold. The visionary behind the idea is Dr. Harald Seiz, a German entrepreneur, founder and owner of several companies, author of books and founder of Karatbars International, based in Stuttgart, Germany.

Starting on July 4, 2019 (Gold Independence Day), KBC holders will be able to swap their digital tokens for the gold that is linked to them. The gold will be passed on in the form of CashGold, physical banknotes issued by Karatbars International, each with a small bar of gold built right into the physical bill.

“With thethe Gold Independence Dasy, a full-featured gold circulation is put in place worldwide and the phrase “I will pay in KBC” means “I will pay with gold”,” Dr. Seiz announced. KBC holders can also keep their digital cryptocurrencies. Holding KBC has many benefits. For one, users can spend their KBC within the IMpulse K1 Phone , the first blockchain powered smartphone in this industry. KBC users can also spend their coins through the K-Merchant app, an e-commerce software solution that connects KBC holders with thousands of online retailers around the world.

Through the complex interplay of these diverse Karatbars digital ecosystem components, gold has been successfully ferried into the digital age. No longer is gold simply a valuable paperweight to put on a shelf of lock in a safe. Today, it’s an agile product tied to a digital asset that can be spent any way Dollars or Euros can. It’s a true innovation that modernizes the gold investment market, and creates (by extension) many new use cases for gold. If you’ve been interested in gold before, consider it again through this new vantage point.

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