Gold Hedging

The current „corona crisis“ has massively increased currency devaluation as loads of money is currently being printed. The whole well-known monetary system has become a fragile structure that’s artificially being kept alive and gradually eroding people’s trust.

The massively increased money supply could possibly lead to a strong inflation. Inflation would cause assets to lose their purchasing power. [The inflation would even help many governments to reduce their debt levels.]

Real assets offer some protection against inflation, as inflation causes the price of these real assets to rise. Real assets are e.g. real estate, gold, stocks and from our point of view, the crypto currencies aswell. There is no guarantee that real assets will always offer protection against inflation.

In general, a high demand for a limited product leads to a deflationary situation, which will be deciding for the price of the Omnis token. We amplify this effect by having each transaction burn 4% of the tokens. As you can see, here too the issue of inflation protection and scarcity comes to mind. With the limited number of tokens there is an argument of scarcity as with gold. We believe that at least some inflation protection can be granted.

Another important argument for protecting cryptocurrencies against inflation is, that the “so-called blockchain technology is organized in a decentralized and transparent manner”. The invested money is protected by a technical, non-manipulable system. Nobody can take away the invested money as long as you handle your password and recovery phrase from the wallets carefully. From an investor’s perspective, we therefore see OMNIS as digital gold.

OMNIS goes further than many other tokens. From the main volume of USD 50 million, the 1% income is being invested in real gold in various forms on a daily basis. These are metal accounts, gold ETFs and other gold investments. We will inform you about the stocks in due course.

This gold volume supports the value of the main volume and combines a non-tangible with a tangible material value. All in all, this approach increases the protection of assets at OMNIS.

We believe that all of these arguments of the OMNIS token provide inflation protection for the assets under management managed by OMNIS.

It should be mentioned that only 2-3% of the world’s population made transactions in the crypto sector. If inflation do emerge due to current crisis, the mentioned proportion of investors will increase massively and accelerate the scarcity of tokens. All OMNIS token holders will be able to deal with inflation with a peace of mind – and remain “the Calm in the Storm”.