Stablecoins: What Are They and How You Can Personally Benefit?

Stablecoins

What Are They and How You Can Personally Benefit? 

Melvin R. Gardner, Karatbars International

July 23, 2020

The world of cryptocurrency started back in 2009 when an unknown person using the alias of Satoshi Nakamoto created Bitcoin. With its creation, it meant for the time that financial transactions sent online between two parties no longer needed a middleman to carry out its successful and secure execution i.e. banks! From this inception, many other cryptocurrencies have come forth to the marketplace. On 19th of August 2018, that number stood at over 1600 and growing. Today, according to crypto market capitalization aggregators, this number stands at more than 5,000 cryptocurrencies in existence and over 20,000 different types of markets. It seems like every day a new one pops up. This created a world analogous to the Wild, Wild West. The price for cryptocurrencies swings wildly creating a predicament where stability is sorely needed. To address this volatility issue, stablecoins were created. 

Although, there will be several stablecoins discussed in this article, the one, in the author’s view and the view of other financial experts, that holds the most future promise in this space is the new V999 stablecoin. More will be forthcoming on this coin later.…but first let me talk about leading stablecoins as the market exists today. 

What is a stablecoin? 

A stablecoin is a type of cryptocurrency that’s designed to be immune from market volatility, making them a more usable form of payment than traditional crypto. It is designed to be safe, secure, and efficient. Stablecoin is backed by real-world assets like the dollar bill or gold contracts, making it an ideal asset to hold. 

Today, stablecoins have become an important source of liquidity in the crypto market because they aim to maintain a steady price. They are used to buy cryptocurrencies on exchanges that don’t accept fiat like the dollar bill or as a ‘safe haven’ store of value for when other crypto assets witness large price swings.

Stablecoins fall into four broad categories: fiat-collateralized stablecoins, commodity-collateralized stablecoins, crypto-collateralized stablecoins, and non-collateralized stablecoins (which aren’t backed by anything).

You can think of a stablecoin like parking garage where investors park their gains from trading until the market becomes favorable to them again. For this, they pay a fee.

Hundreds of stablecoin projects have been announced over the past few years – to varying degrees of success. Of the five stablecoins listed below, Tether is the most popular amongst them all in the marketplace today. It’s second only to Ether (ETH) as the largest altcoin in the cryptocurrency market. Tether has a daily trading volume around $21 billion per day. It’s backed 1:1 by the U.S. dollar bill.

1. Tether (USDT)

With a market cap of £3.57 billion, Tether is not only the largest and most well-known stablecoin, but it also ranks at number five in CoinMarketCap’s list of the top 100 cryptocurrencies by market capitalization. 

Tether was created to be a quick and cheap way of transferring value from one exchange to another. It essentially acts as a bridge between fiat currencies and cryptocurrencies. 

It is pegged against the US dollar and maintains a 1:1 ratio in terms of value. 

However, Tether has gained its fair share of controversy. In mid-2018, several fraud allegations hit Tether, sending its price from $1 per token to 85 cents. 

It has also been accused of manipulating the markets and issuing millions of tokens without a proper audit process in place. 

Despite this, Tether has retained its crown as the king of the stablecoin market.

2. USD Coin (USDC)

This is the brainchild of the CENTRE consortium, co-founded by Coinbase and Circle, USD Coin aims to be a stablecoin with financial and operational transparency. 

It is pegged to the US dollar in a 1:1 ratio and is available on all the major crypto exchanges.

USDC is an ERC-20 token that runs on the Ethereum network, thereby enabling dollars to be moved anywhere in the world in mere minutes for very little cost.

The US dollar reserves for USDC are audited every month by accounting firm Grant Thornton.

3. TrueUSD (TUSD)

TrueUSD has made a name for itself as one of the most reliable and proven stablecoins. The first independent audit of TrueUSD, conducted in March 2018, revealed that it is backed by almost $1.8 million in reserve. 

The US dollar-backed ERC-20 stablecoin is fully fiat-collateralized and transparently verified by third parties, who publish their reports regularly via Twitter. It also offers legal protection against misappropriating underlying USD. 

TrustToken, the platform that creates the stablecoin, has partnered with registered fiduciaries and banks to store the funds backing the TrueUSD tokens. 

4. Dai (DAI)

Instead of being backed by US dollars in a bank account, DAI is backed by collateral on the Maker platform. It runs on Ethereum and attempts to maintain a value of $1. 

Since all operations are run by the Ethereum smart contract, DAI is seen as more transparent and fairer than centralized stablecoins. Only users can create and destroy the token.

It uses margin trading to respond to changing market conditions and preserve its value against the major world currencies.

5. Paxos Standard (PAX)

Launched by the Paxos Trust Company, PAX is a regulated stablecoin that has been approved by the New York State Department of Financial Services. 

The ERC-20 token is backed by the US dollar in a 1:1 ratio, with corresponding US dollars held in reserve at FDIC-insured US banks. 

Paxos tokens only remain in circulation for as long as there are corresponding US dollars being held in reserve. When PAX are redeemed for USD, the tokens are destroyed. 

PAX has been one of the industry’s most quickly adopted cryptocurrencies and it is available on over 40 exchanges. 

With all the money printing that’s going on all over the world today by central banks, it’s hard to say how long Tether or any other dollar backed stablecoin will remain in favor with investors. All this money printing, particularly by Federal Reserve System, has constantly eroding the value of paper money. With this, it has opened the doors for another stablecoin that’s more stable to come to the marketplace. Let me introduce the next stablecoin fits that bill called the V999 stablecoin. This coin is being brought to the marketplace by Karatbars International.  

Who is Karatbars International? 

Karatbars International is a 10-year-old, 100-billion-Euro, debt-free company headquartered in Stuttgart, Germany. It is the largest distributor of small increments of 999.9, 24k, currency grade gold bullion in the world. Its gold is all refined by London Bullion Market Association (LBMA) certified refineries. Not all refineries are LBMA certified. Of over some 1,000 refineries that exist today, only approximately 55 are LBMA certified i.e., meaning they are on the Good Delivery List. 

The owner and CEO of Karatbars International is Dr. Harald Seiz. He wrote a book several years ago called ‘The Future of Money’ which can be easily found on Amazon. In it, he lays out the history of money and what we can expect in the not-to-distant future. The average lifespan of fiat currencies is 27 years. The fiat dollar bill has been here for 47 years. It’s way over due to collapse. As you can see below, the dollar bill has lost most of its purchasing power since its inception in 1913. It stands now at less than three percent (3%) of its original purchasing power value. 

As a consequence, we can see things moving more rapidly in the direction of a digitized form of money. 

Karatbars operates in one hundred and forty-nine (149) countries throughout the world. It does business in six of the seven continents of the world: Africa, Asia, Austria, Europe, North America, and South America. It does business in more countries than Walmart and McDonald’s put together. 

Some of its business partners include FedEx, MasterCard, Vatican, and the Crown of England just to name a few. 

The company has its own money called Cashgold. Cashgold has embedded in it various number of 0.1 gram of 999.9. 24k currency grade gold ranging from 1– 6. It's shaped very much like a dollar bill.

Karatbars has also produced the first blockchain ATM machine (Cashgold Exchange Machine - CEM), the first blockchain cell telephone, and the first blockchain laptop computer system in the world that runs on Voice Over Blockchain Protocol (VOBP). If you know anything about blockchain technology, you know that it’s private, you know it’s hack proof and you know it’s tamper proof. You also know that nothing is ever lost on the blockchain. Karatbars’ blockchain operate in a decentralized environment with a 512-bit encryption. This level of encryption is greater than military encryption which is just 256. 

In addition, Karatbars has had the largest cryptocurrency offering (i.e., ICO) in the history of cryptocurrencies, 62 billion. Plus, it has the first blockchain international commercial gold payment system in the world called Karatpay, and the first cryptocurrency full-service bank in the world, opening this November in Miami, Florida as well as its own cryptocurrency blockchain trading platform called Karatbit, three gold mines, just to name a few. Stay tune, there are more innovations to come… 

It has nearly a million members in its organization from around the world from a broad spectrum of specialties and persuasions: doctors, lawyers, financial professionals, government employees, mortgage brokers, gold dealers, law-enforcement personnel, lecturers, authors, business owners, network marketers (in fact, one is in the Network Hall of Fame), teachers, preachers, every religious denomination you can imagine, and everyday common folks like me. 

V999 Stablecoin 

The V999 stablecoin which is launching soon in the cryptocurrency space will be backed by physical 999.9, 24k, currency grade gold refined by London Bullion Market Association (LBMA) certified refineries. Each stablecoin will be worth 0.1-gram of gold. If you don’t know about currency grade gold, this is highest form of gold possibly and it’s the same type of gold used by governments and central banks to settle their debts. Gold is real money. It’s God’s money. The amount of gold it took to purchase an item 5,000 years ago, it takes that same amount to purchase that same item today. That’s real purchasing power. That can’t be said about all your fiat currencies. The dollar bill and all other fiat currencies around the world are just debt instruments that we’ve been brainwashed into thinking that they are valuable. Over time, history has shown us eventually all fiat currencies go to a zero value. Gold and silver are the only forms of money that have gone unscathed through major wars and severe periods of major financial depression and inflation. During these times, those who held these precious metals came out on top. Those who didn’t perish or became greatly impoverished. 

Besides Karatbars, there are a number of different cryptocurrency projects that are trying to solve the problem of stablecoin stability, one of these is Xank, a project helps to take positive aspects from both stablecoins and free-floating cryptocurrencies. 

This is achieved by maintaining the cryptocurrency as a free-floating coin, but also giving their customers the chance to make payments with stable value, using the “Stable Pay” feature, which will automatically adjust for the number of coins needed for a transaction. 

If more coins suddenly become needed, the project will cover the amount from the Xank Reserve and if there is a surplus of coins after a transaction, the Reserve will take that surplus. This helps to maintain the value and adjust for changes in the market. 

The V999 will work altogether different. Not only will the V999 will be exchangeable for physical gold, it will be regulated and the physical gold that backs this coin will be stored in a secured vault (e.g.: Brinks) and audited monthly by one of the leading auditing firms in the world and published on its website. The V999 will be traded against the top 10 cryptocurrencies in the marketplace such as Bitcoin, Ethereum, and etc. Everything will be transparent for anyone to see. There can be no hanky-panky here as can exist with other stablecoins. Since the V999 will be backed by gold, its purchasing power of gold will never change. There is no need to do the type manipulations as other stablecoins do to stabilize their values. 

As a result, it is projected that the V999’s market share will go through the roof and shatter anything out there today. It is anticipated that the V999 will capture a lion share of the marketplace due to the substantial amount of uncertainty and failures in today’s world economy and the constant rising gold prices. 

People who are reading this information about the V999 stablecoin now and act upon it right away will benefit because there is an opportunity presently within Karatbars where people can become a founding member in launching this coin. By being a founding member, you will be entitled to receive 2% commission every time your stablecoin is traded in the marketplace: buy or sell. Your DNA will be attached to your coin so that your coin will continually be tracked with sophisticated blockchain software using smart contracts. Your transactions are never lost or tampered with. You will receive a commission each month from your volume of trading activity. The commissions will continue for your life, your children’s life, your children-children-children’s life, all the way to ad infinitum. 

An individual can get started investing in this program with as little as $7.49 per stablecoin. I don’t see where this would cause undue hardship on anyone. However, understand this, the more coins trading in the marketplace each day, the better chance for them to be actively traded in the marketplace.

There are a couple caveats though. In order to participate, you must be a Karatbars’ member and you must be registered and have your account setup before the general trading period which starts on October 15, 2020. If I were you, knowing the projection for this V999 stablecoin, I wouldn’t wait till then, I would do it NOW while it’s fresh on your mind. This deadline will slip up upon you before you know it and you will have missed out.

In the meantime, if you have any questions, you can call me a call at (614) 626-2722 or email me at Melvin@melvingardner.com. You can also visit my website at http://MelvinGardner.com.

While you’re pondering your decision as to whether you’re going to pursue this opportunity or not, take a look at the U.S. Debt Clock. Mind you, it is not just United States that’s having this debt explosion. This debt problem exists all over the world...just look at countries like Venezuela and Zimbabwe. Venezuela, at one time, used to be the leading stock market in the world. COVID-19 is now putting all countries’ debt accumulation on steroid. Do you think the United States will ever be able to pay off its debt? Do you think that things in the future are going to get better or worse for you? How you think you are going to fare going forward with all this debt hanging over your head? Remember, you will have to help to pay for it.

 …ALL ROADS LEAD TO KARATBARS INTERNATIONAL… 

It’s not because this company is the best company in the world. But it is because this company is the best company for the world. Its products consist of real money GOLD (God’s money) and other gold backed products like the KBC cryptocurrency and the now V999 stablecoin.