Most cryptocurrency investors have used Tether to store value at some point or other, but somewhat fewer investors have ever fully trusted USDT. Tether was the first major “stablecoin”. This class of cryptocurrencies maintained a stable price through one of several methods. Tether’s method was the most common – peg the value of the asset to a specific conventional asset, in this case US Dollars.
The peg was made effective by holding hundreds of millions of real dollars in reserve, one for every single Tether coin in circulation. At least, that’s what Tether claimed, though the company never submitted to audit. The industry suspected that Tether had a fractional reserve, and that they could never prove 100% backing.
With the announcement of a suit by the New York Attorney General against Tether and Bitfinex, this suspicion was proven. Tether doesn’t have, and likely never had, 100% backing. And while Tether seems to have weathered at least the early days of this scandal, many crypto investors are looking for another stablecoin to store value amidst the volatile prices of this still-young industry.
KaratGold Coin (KBC) is one of the new class of stablecoins that’s making a strong case in the wake of the Tether scandal news. KaratGold Coin is linked to physical gold asKaratbars International is the company behind KaratGold Coin. For nearly a decade, the company has been selling gold currency products to investors all around the globe in an attempt to make gold more useful as money, instead of just being an investment. With KaratGold Coin, Karatbars has the best plan yet for achieving this goal.
KaratGold Coin is available for purchase and spending through K-Merchant, an app used within the KaratGold ecosystem. K-Merchant is already integrated with WooCommerce and many other e-commerce platforms. People who have their KaratGold Coin on the K-Merchant app can spend KBC through thousands of online retailers around the globe.
Apart from that, the company is aiming to deliver a massively secure mobile phone where calls and text messages are not transmitted through conventional ways, but instead, they are encrypted and broadcasted by a newly created Voice Over Blockchain Protocol (VOBP). It uses peer-to-peer encryption that can not be hacked or manipulated. Data stored on the device, such as images or documents, are saved and enciphered through the IFPS platform, which is a decentralized storage medium based on blockchain technology.
This is a significant feature, because it essentially means that gold can now be spent online. Starting July 4, 2019 (Gold Independence Day), holders will be able to swap their KBC for CashGold notes. Should the buyer simply wish to own gold remotely, using it as collateral backing purchases with KBC, this system will make it possible to use gold as money once more, even online!
KaratGold Coin and Karatbars International are the inspiration of Dr. Harald Seiz. Seiz has created innovative products in the past. CashGold is one of these – paper currency notes with tiny 0.1 gram gold bars fit into them. CashGold can be folded into a wallet, just like Dollars, and used for purposes where fiat cash would be appropriate.
With KaratGold Coin, Seiz makes the same innovation online. In fact, KBC is likely more useful. Fully exchangeable virtually for Bitcoin, Ethereum, and fiat currencies, KBC is a perfect digitization of gold, making it into a true asset for the digital age.