One of the common questions that gets asked when explaining cryptocurrencies to others who may not know much about the concept is the question of value. What makes a crypto worth “real” currency?
The answer here can be fairly complex, but it usually boils down to its usefulness in the market that specific currency is targeting. Yet, this answer isn’t entirely tangible. In many cases it can even seem random from investors buying up the coins in hopes to ride a price wave.
The chaotic nature of the crypto market, partly because of this, can indeed cause some to look at the entire technology under a very skeptical lens. Yet, they are overlooking the convenience and utility these currencies actually bring to the table. Blockchain tech allows for high security, quick and cheap transfers, an easy way to invest in a company, and a lucrative holding when all goes right.
Still, for many the tumultuous ups and downs on a price that is based on what amounts to faith in a product isn’t the ideal way for their currencies to work. Here Jinbi, a new crypto on the market, is looking to step in and create a better way to back the value of a cryptocurrency.
The idea behind Jinbi is as simple as it gets. Just like how many fiat currencies used to operate, the value of Jinbi will be backed by gold production.
The crypto currency market has taken on many similarities to the gold market over time, so it’s a natural progression to merge these two. Mining, like that of the computers that hash the bitcoin blocks, comes from these similarities.
However, gold lacks the ease of use plus the quick and cheap transactions of currencies that operate on the blockchain. The marriage of these two markets should create a best of both worlds scenario for holders of the Jinbi.
Jinbi is accomplishing this concept via deals with gold productions facilities in Dubai and Switzerland. When a token is purchased, these accredited facilities produce bullion in response. This bullion is then stored securely and insured with quarterly Bureau Veritas inspections to ensure holders that their gold is safe.
All of this is then stored and secured permanently on the Ethereum blockchain, transparently, with all the information about the bullion available at any time.
Trading Jinbi, and thus the gold, is accomplished via smart contracts that correlate the Jinbi with the gold. Transference of a token is also then the transference of bullion to another owner, without the need for expensive transportation from the safety of a physical vault. Though, paying out in bullion is another option for holders that wish to sell back to Jinbi.
Putting all of this together means that the Jinbi must have a minimum value, otherwise investors would simply purchase the lower cost Jinbi and resell it at a profit for gold. As the price of gold increases, as it always does, the floor of the Jinbi will also raise. Furthermore, as the Jinbi is transferred, the value increases due to its utility. The end result is that the Jinbi can only have upwards mobility and upwards volatility but little reason to come down in price.
For any real currency there needs to be a high amount of trust towards the producers for it to be worth anything at all. When faith in a market is lost the value of a currency crashes. This can be seen time and time again all around the world. Jinbi is working towards a highly secure commodity with their token so faith doesn’t need to be a part of their monetary world.
To accommodate this need they’ve teamed up with trusted and independent parties to ensure the value of their token.
Produits Artistiques Metaux Precieux or PAMP, out of Ticino. Switzerland, produces the world’s top bullion brand as the most trusted refiners around. At the same time, Jinba’s other gold producer, Kaloti Refinery in Dubai, have an excellent history within the industry and specialize in African produced gold.
All of the gold produced by these prestigious institutions is guaranteed 99.99% pure. To ensure the accuracy of these claims another independent and trusted organization, the Buraeu Veritas Inspectorate, carries out quarterly audits on stored gold. They check many factors including the quantity and quality of all stored gold and have been the top inspector of precious metals, with their heritage dating all the way back to 1828.
Jinbi will own the vaults the gold is stored in, all adequately insured and documented immutably on the blockchain once inspected and improved by the Buraeu Veritas. There’s no possibility for paper slip-ups or human error with this sort of system, making gold safer than ever before.
As if all these guards weren’t enough to ensure the value of Jinbi’s gold and thus the value of the Jinbi token, they will also be undergoing annual audits to ensure the company is under good governance. One of the world’s top-5 accounting firms will go over all of Jinbi’s financials once a year, every year, with the results available publicly for further trust in what they are doing.
All of these parties are completely independent of each other, with no reason to mislead the holders of the Jinbi token. Furthermore they have all been specifically chosen for their track record of professional and unbiased results. All of this information is available to the public and the token holders at every stage of the process. There is zero reason to worry about what is going behind the scene at Jinbi, because there may as well be no behind the scenes.
The Jinbi token may be the best attempt yet at combining the inherent value of golds and precious metals with the utility of a cryptocurrency. There is no reason to think that the Jinbi will not be a major player in the token market as the company continues to grow. The saying is that gold always holds its values, but now the Jinbi may very well be added to that list.