Introducing Kinesis - A Possible Monetary Revolution

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Earlier today, we had the opportunity to catch up with Tom Coughlin, CEO of Allocated Bullion Exchange and Kinesis Ltd, a new gold-backed currency being unveiled in 2018. Tom was joined by our old pal, Andrew Maguire, and together they were able to explain how and why Kinesis can provide a global monetary revolution.

Details of how Kinesis works as well as the initial KVT and ICO offerings can be found here: https://kinesis.money/#/

From the Kinesis website, here's a great description of what we hope this new currency will become (click to expand):

But it's much more than that. Kinesis brings the possibility of hope and prosperity to billions of people worldwide who have been impoverished by the current, debt-based monetary system. All the while, physical gold and silver flowing into Kinesis should provide an extraordinary stress for The Banker's current fractional reserve and paper derivative pricing scheme.

This sure sounds like a WIN-WIN to me so I encourage you to take some time to consider the benefits that the Kinesis system may bring. We thank Tom and Andy for their time today and we look forward to hearing from them again soon as progress is made in bringing Kinesis to life.

TF

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Agent700
Mar 15, 2018 - 7:24am

@Uchiki

Back to the desk tonight here (Shenzhen) and got logged into the Telegram group. Thank you for all of your tireless quant work! Wow, you did some thorough research and crunched the numbers, thanks.

I've been waiting for Andrew McGuire's gold backed crypto for months, so glad he interviewed here with Turd. We are lucky to be in this august group of insiders! Wired for 10 KVT tonight, we'll see where this thing goes..

uchikiAgent700
Mar 13, 2018 - 11:48am

@Agent700

Glad it's of some use.

If you haven't already, have a look at the telegram group that Tom set up.

I posted a bit over there based on my research into existing financial flows. This was mainly to see whether the blueprint(p37) Yearly Volume (year 5) of $40 trn was a plausible number. I didn't end up with anything like a precise figure for existing global financial flows, but got to the same order of magnitude from two different sources. $40 trn looks like less than 1% of total financial flows, so with all that Kinesis has got going for it, it seems quite possible.

The underlying purpose was to help me decide whether to add to my initial small KVT subscription.

Agent700uchiki
Mar 11, 2018 - 9:57pm

Thanks Uchiki

Thanks for the analysis of Kinesis. Your summary view will sure help as I dig into the prospectus/offering. I've been hearing about an asset (gold) backed crypto for a while and greatly respect Andrew and Tom. I have a strong feeling this is going to take off, and we're going to plop down some spec cash on it.

Klingon
Mar 9, 2018 - 10:01am

It may be a dumb question,

It may be a dumb question, but how do I get money out. I understand Coinbase and have moved money in/out of Etherium there to/from my bank account or credit card (in the past). I can't seem to figure out how to do this with MetaMask.

Can someone enlighten me?

uchikiThomas Coughlin
Mar 8, 2018 - 7:37pm

Transaction Processing Speed

Thanks for that update Tom.

I've reworked the numbers, and for the purpose of this example, made an assumption that Indonesia being a small part of the overall mix accounts for something like $1 bn out of $7.8 bn 1st year total Kinesis market cap.

Year 1 market cap from Indonesia KAU and KAG $1 bn.
Daily turnover required for 20% velocity is $200 million.
Assuming average transaction size of $10, transactions per day required is 20 million.
Transactions required per second, every second is 231.
These might be split equally over two blockchains, one for gold (KAU), one for silver (KAG). Say 150 per second in the busier one.
Contrasting this with 3000+ transaction capacity gives much more breathing space than in my initial guessed example.
40% velocity would be 300 tps every second, and there's room for the network to be busier at certain times of day.
If the market cap guess for year 1 is anywhere near, depending on velocity, there might be room for the market cap to double or more over the following year, without bottlenecks developing.

Applying this market cap to individual customers required (previous post Indonesian Demand) would mean something closer to 1% of the Indonesian working age population. Sounds a much more comfortable assumption.

As Tom has said, it's going to be a more efficient Q&A via the Kinesis telegram group, so I'm going to migrate my further questions there.

Based on Tom's comments above, it seems like there's going to be velocity, market cap and yield specific to a product eg KAU, KAG which are going to be of interest if you are participating as a Minter, Holder, Depositor.
Also for KWG and KWS.

There's also yield related to the KVT tokens, which includes all current and future products.
That distinction is something I want to try and get my head around.

Mar 8, 2018 - 3:07pm

Kinesis Telegram Group

Also all, to assist with answering questions efficiently we have established a Kinesis Telegram Group.

The address is - https://t.me/joinchat/EOydSFH1fCXODvEMPKPNPw

Hope to see you there.

uchiki
Mar 8, 2018 - 3:04pm

Transaction Processing Speed

Hi Uchiki,

Thanks again for your interest and in-depth analysis in the Kinesis project.

Firstly, please see a table below illustrating our network transaction processing speeds in comparison to other networks.

Kinesis has chosen Stella which is known to be the fastest blockchain network. Further to this we will be making and all possible enhancements to the speed of transaction processing and will do whatever is required for capacity purposes. Importantly, the speed is applicable per coin/product as each one trades on it's own blockchain and we will offer an ever expanding suite of products. A minimum if four products will be launched from the beginning. These will be the gold & silver payment currency coins and the gold & silver wholesale allocated and segregated products. Perhaps we will even launch with additional coins/products!

What this means is an initial capability of minimum 3,000 tps X 4 = 12,000 tps

Regarding your statement:

"To arrive at transactions per day, first estimate average transaction value.
Average Visa debit card transaction in Europe was stable @60EUR between 2010-2015.
Average Kinesis transaction value in Indonesia more likely to be nearer $10. "

Kinesis will not just be receiving velocity from small transactions and certainly not just from Indonesia. One of our major unique advantages with our banking partners is that we can on-board and off-board fiat money from all over the world and offer our solution all over the world. We will be completely global and also have very large transactions going through the network. For example, we will be launching an institutional exchange trading platform that will facilitate trade for the physical industry, asset managers and traders. Large trades potentially equivalent to billions of dollars will go through this. Despite our partnerships in Indonesia, we still see this are being a small market for uss in comparison to other markets.

Regarding your below comment:

I appreciate that on page 4, you state that
"Blockchain peer-to-peer decentralised distributed ledger technology – blockchain may become obsolete, but distributed ledger technology can only be enhanced"
suggesting that you are flexible to adopting more efficient forms of DLT.

Yes this is correct. If better technology arrives and we require it we can make a transition in that direction.

Hope the above helps.

Best regards,

Tom Coughlin

NZSilverSurferCNJ
Mar 8, 2018 - 10:53am

CNJ Hashgraph

Good call, is this transition possibly is you have 20 million users underway

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abundance
Mar 8, 2018 - 9:54am

6 min utube...starting Mar 11th,

with John Podesta, change will be seen

Video unavailable
CNJ
Mar 8, 2018 - 8:32am

processing speed issue

above comment relates to Uchiki's post re processing speed.

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