There’s never been anything quite like the blockchain. A completely decentralized transference of data and currency really could not have been achieved before the widespread use of the internet. Now the blockchain is growing exponentially, and with it many are confused as to how it even works.

The basics of how price is formed on the blockchain is somewhat complicated, but the basics can be grasped fairly easily. The inherent value of a crypto is based on its usefulness in the market niche it is targeting. This means if it’s traded more, it’s worth more. Still, there’s no real physical backing to this and it leaves the market to the whims of public sentiment.

This lends itself to a pretty chaotic price chart, with sometimes staggering ups and downs that can seem random for those not up to date in crypto-news. The skepticism of those outside the bubble of the crypto-world can be somewhat warranted from this view point.

Yet, the high security and quick transference of funds that cryptos allow should not be shrugged off due to this. Furthermore cryptos can be an incredibly valuable financial holding if downwards volatility isn’t a problem.

Here Jinbi is working on the solution. By combining the utility of the Ethereum blockchain with the always valuable nature of gold, they are creating a currency that has an ever growing price floor but maintains the upwards momentum of cryptocurrencies.

The Crypto Gold Standard

Backing a cryptocurrency with a physical medium such as gold may seem like an obvious choice to avoid the aforementioned downturns that plague regular cryptos. However, to actually accomplish this task, and make sure it is still decentralized has required the advancement of the Ethereum blockchain as well as finding the right independent parties to partner up with.

Even on the surface, it just makes sense to combine the two markets. Precious metals and cryptos have many similarities in how they are held and there uses. Both are a way to exchange funds globally and both base part of their value on scarcity.

Where they differ is simply the difference between a physical and digital medium. Gold is hard to transfer and expensive, but there’s also the real world inherent value of gold. Cryptos are quick and easy to transfer, yet it exists purely as a digital medium.

Jinbi has partnered up with gold production facilities that will produce bullion once a Jinbi token is created. The gold is then delivered to one of Jinbi’s vaults, and then the Bureau Veritas inspect and audits that vault every quarter. When the audit is complete all the information is stored onto the blockchain as a Jinbi token which then exists as a digital way to trade the gold stores.

As the information is on the blockchain, all of it will be available publicly and permanently so no question can be had over the ownership or any other matters of the gold.

All of these steps combine into a currency that must, at the very least, be as valuable as gold. Otherwise traders can simply buy tokens and sell them for the bullion as an instant profit. This means the market will regulate itself at that price point.

On the otherside of this equation is that of the crypto. The cryptocurrency will, at time, gain upwards volatility. However, as the floor is set at the price of gold the downwards volatility will be miniscule when compared to the less physical cryptos on the market.

Jinbi is setting itself up to have a crypto that is as sought after as gold, but with the utility of a cryptocurrency.

Keeping it all Open and Honest

The need for transparency in cryptocurrencies can’t be overstated. That volatility mentioned before is partially due to this. When a company makes choices it affects stocks prices, the same goes for crypto markets. By keeping things open with the public, Jinbi is making an early stance to avoid the mistrust of their holders.

This starts early on in the process with their choice of refineries. Jinbi will be using two different refineries, in different parts of the world to make sure there is always gold available to be refined.

The first is PAMP, or the Produits Artistiques Metaux Precieux. They’re located in Switzerland and have probably the most respected track records of any gold and precious refinery on the planet. The other is the Kolati Refinery located in the free trade zone in Dubai. Kolati is also respected and is positioned perfectly for any gold that comes through from African mining facilities.

All of the gold is guaranteed to be the purest available and is quickly sent over to Jinbi’s own storage vaults for safe keeping and insurance purposes. After it arrives in the vault, however, a further check will happen four times a year by the Bureau Veritas.

The Bureau is an institution of high regards and has been keeping the quality of the world’s gold stores at top levels since the early 1800’s. Once this audit is completed all the information is recorded into the blockchain through the Jinbi token, which then represents the gold stored therein.

Jinbi is also taking measures to assure the public that their internal proceedings are kepts to high standards as well. A yearly audit will commence throughout Jinbi by one of the world’s leading accounting firms and the results of this will also be available publicly on their website.

From manufacturing all the way to their offices, Jinbi is making sure that everything can be seen and questioned by the holders or any interested parties. This should alleviate most potential downward volatility that can come from rumor of ill activity within a company or product, leaving much more room for what we want; upwards momentum.

Jinbi has placed itself in a very prestigious position with important businesses in the world of gold trading. The potential of the Jinbi token is quite large, and could very soon become a popular way of doing gold trades. The world of cryptocurrency is still new, and the crypto-gold trade newer yet. But, with practices and plans like this, Jinbi is in a great spot to create a boom in their market.

https://ico.jinbitoken.io/

https://jinbitoken.io/