The concept of a cryptocurrency seems to get lost on some people. This is partly due to it being new tech but many also pose the question of what even gives a cryptocurrency value in the first place. The answer to this is generally its utility in the market as a means of transferring wealth, but some have trouble with this.
To be fair, they aren’t entirely without reason to be skeptical either. The crypto market place is historically extremely volatile in both directions, since it’s almost entirely at the whim of the feelings of the holders of the currency. A bit of bad news can easily pop a micro-bubble, which has been seen time and time again with the likes of bitcoin.
Still, the utility afforded by cryptocurrencies still can’t be overstated. Currently it stands as the best option to trade globally, with quick transfers and low fees to anyone around the world.
Yet, those price waves are not for everyone and for those looking for a more tangible solution to crypto needs there really hasn’t been much progress. That is, until Jinbi. Jinbi is working on combining gold production and stores with the Ethereum blockchain network to combine the utility of the blockchain and smart contracts with real world precious metals to the boon of both markets.
The Golden Combination
The principles behind this concept are not too hard to understand, especially since the current crypto market already shares a lot of similarities with the world’s gold and precious metal markets. Some terminology, such as mining which refers to the computer farms that spend all day hashing bitcoin blocks, obviously comes from the precious metals market.
The main problem with gold as a currency is that transference of funds is highly slow and expensive, just like trading any kind of physical good. By backing their tokens with gold, Jinbi has the potential of adding value to the age old market of gold trade and bring it into the modern era.
Jinbi has made deals with gold production facilities around the world that have already been contracted to produce gold when a Jinbi token is purchased. This gold is then stored in one of Jinbi’s own vaults, that are inspected quarterly by the Bureau Veritas. Once inspected, all information about the gold is permanently etched into the blockchain and can be traded and used just like any other crypto.
All this information is available publically and transparently via smart contracts to ensure no human manipulation can occur with the gold stores.
By transferring these tokens, which hold the information of approved and audited gold, you are also transferring the gold to a new owner, along with the value of the token itself. All of this gets accomplished nearly instantly and without the need of physical gold transferring, as this all takes place in Jinbi’s vault and thus Jinbi’s network.
All of this goes to ensure that Jinbi is at least as valuable as the gold it represents. If the price of a Jinbi token goes below the price of gold, then savvy investors can simply scoop up those tokens and sell them for an immediate profit. This also means that Jinbi’s price, even at its minimum, will always increase with the price of gold.
Going even further down this road, the transference of Jinbi also increases its value as a mode of currency. This means there is always going to be upwards mobility from multiple sources as the Jinbi grows in the market and more become token holders with very little reason to come down in price.
Ensuring Positive Sentiments
As stated before, the volatility of cryptocurrencies is mostly at the whim market sentiment. When people have doubts about it, the price goes down, when people are confident, the price goes up.
Though Jinbi has the price of gold safety net in place, to really grow as a token they need to make sure there are no doubts about the organization behind the Jinbi. The best way to make this happen is to be transparent about everything. Thus, Jinbi has allied themselves with trusted independent parties in the industry to make sure holders and potential holders have no reason to doubt the token.
Produits Artistiques Meteax Precieux (PAMP) is located in Ticino, Switzerland. PAMP is known worldwide as the most trusted and prestigious bullion refiners in the world. The other refiner being used is known as the Kaloti Refinery, located within the free trade zone in Dubai. Kaloti is positioned perfectly for any African gold produced while PAMP handles the rest. Both of these institutions have a long and trusted history in the market, but to ensure this Jinbi is taking things a step further.
Before a Jinbi token even hits the market the gold it represents must pass an audit by the Beurau Veritas Inspectorate. Every quarter all the gold in all of the Jinbi gold vaults will be checked by this institution, which has a long and trusted history of inspecting gold and other precious metals dating back to the early 19th century. They will ensure that the quantities and quality of all gold matches up with what the Jinbi token represents.
Jinbi’s vaults are insured properly and all the gold stored within will be documented permanently on the blockchain, publicly and transparently. There are 0 possibilities of human meddling outside the bonds of Ethereum smart contracts with this system in place.
Finally, Jinbi itself will undergo annual audits by one of the world’s top-five accounting firms to show the business is being run on the up-and-up. These audits will also be available to the public as soon as they are completed.
Each and every one of the institutions involved every step of the way is completely independent of one another, with no stake in Jinbi whatsoever outside of their continued business. Beyond that, each of these parties have a long history of being completely professional and are renowned for this very reason.
This sort of open and honest business practice is what the blockchain was invented for and Jinbi is making sure to live up to these expectation. As far as tokens go, there is real potential with this one and its use of the gold standard. Big things are ahead for Jinbi and its holders. Who would have thought the blockchain may bring about a new era in gold trading?
More information on his website Jinbi.
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