What is Karatgold Coin?
Karatbars developed Karatgold Coin as the world’s first cryptocurrency backed by gold. The coin uses smart contract technology, which is based on the Ethereum blockchain. The smart contract technology allows holders of the coin to execute contracts by exchanging the coin. The technology itself enforces the terms of the contract, allowing for safe, overseas exchanges without paper contracts.
Karatbars CEO, Mr. [Harald] Seiz, envisioned Karatgold Coin as a cryptocurrency that users could rely on as a store of value and use as a means of exchange. He notes that many cryptocurrencies are based only on an idea. Many of these ideas will ultimately fail, leaving investors with losses.
Since Karatgold Coin can be exchanged for the equivalent in gold, investors enjoy the security of stable value. They can invest in Karatgold Coin and sleep well at night. Because the coin provides stable value, holders can exchange goods and services without fear that the value will drastically change. This quality makes Karatgold Coin ideal for instant, worldwide transactions. As the coin becomes more widely known and used, its value will appreciate, making it a strong ground-floor investment opportunity.
Part of the reason bitcoin has never gained wide acceptance as a means of exchange is, that its value has no solid basis. The volatility that makes it attractive to speculative investors also makes it a poor choice for a currency. No one wants to sell a product for bitcoin if its volatility could mean losing 10-, 20-, 30-, even 50 percent of their product’s value within a short time of the sale. At that rate, businesses would go belly up very fast.
Karatgold Coin provides the solution by stabilizing its price with gold. In addition to a means of exchange, it also provides a great currency risk hedge. Fiat currencies continue to devalue. Investors need assets that hold value.