The Cold Storage Coins Whitepaper

Money & the Erosion of Value

“Give me control of a nation’s money and I care not who makes it’s laws.” - Mayer Amschel Rothschild

Since the early days of civilized commerce, the equitable exchange of value has been under fire. Once societies evolved past man-to-man barter and trading became more complex, experts of the “do less and take more” methodology systematically worked to centralize the issuance of money, further distancing it from the value it serves.

With the convenience of centralization comes control, and all too often this power falls into the hands of those whose goal is to extract wealth from the participants. And with money as the life-blood of a society, the consequences reach further than just commerce.

As the world got bigger and fortunes more vast, monetary instruments became more complex, ushering in the Day of the Banker. Seemingly overnight, enterprising young goldsmiths, money changers, lenders, scriveners and other financial intermediaries were all too willing to take deposits in exchange for warehouse receipts and promissory notes. These “payable on demand” receipts along with the goldsmith’s issuance of term loans marked the birth of fractional reserve banking. This gem of the financial world paved the way for the rapid disappearance of value from exchanges, marked by several notable disappointments:

1913

After Congress successfully avoids renewing the country’s central bank charter twice, a financial panic orchestrated by the world’s wealthiest men results in passage of the United States Federal Reserve Act. Several years later, the required 20-year term limitation was removed, ensuring its perpetual existence.

1933

Following 20 years of skepticism regarding the Federal Reserve’s purpose, legality & usefulness, President FDR issues the Gold Confiscation Executive Order, mandating circulation of Federal Reserve Notes under threat of fine and/or imprisonment.

1964

Shortly following the assassination of the President (who some believe was working to dismantle the Federal Reserve), silver certificates and silver coins are phased out of circulation. Today, not one country’s money supply contains significant amounts of silver.

Attemps to Restore Value

Fortunately, the erosion of value from money is obvious to anyone paying attention.

Some have even attempted to reverse the trend.

The Liberty Dollar

1998-2007 Privately minted and issued silver coins & certificates circulated for years as local currencies across the USA until the FBI raided company headquarters in 2007. The founder was charged with counterfeiting and convicted in 2011. He was labeled a “domestic terrorist” for “endangering the economic stability of the country.”

Liberty Reserve

2007-2013 In stark contrast to fractional reserve banking, Costa Rican-based Liberty Reserve conducted a full-reserve banking system independent of any government. Used for billions of dollars in transactions, Liberty Reserve assets were seized in 2013 by US Prosecutors under authority of the Patriot Act, claiming Liberty Reserve was used to fund terrorism and other illicit activities.

Iraq, Libya & Iran

2003-? These Axis of Evil nations all at one point threaten (or continue to threaten) the hegemony of the US Dollar by crafting plans to trade oil for gold. Not surprisingly, two of the three have since undergone violent regime changes in the last several years.

All hope for financial freedom seemed to be lost forever.

Bitcoin & the Currency rEvolution

In 2009, “cryptology expert” “Satoshi Nakamoto” introduced a peer-to-peer payment system, relying on internet participants to clear transactions instead of the conventional central authority.

Following a short period of obscurity, Bitcoin gained popularity in gray and black markets, eventually thrusting it to the very center of the world’s financial markets.

Though it requires several key technological components to operate and participate, Bitcoin has no artificial barrier to entry and can be used by anyone. Relatively speaking, Bitcoin is fast, anonymous & inexpensive. And unlike other recent attempts to reverse the trend towards financial centralization, Bitcoin lacks a central administrative choke-point, making it difficult or impossible to shut down without disrupting the entire internet. Best of all, the growing global gray-market workforce - people that aren’t currently serviced by mainstream finance - are adopting it at a shocking rate.

In 2012, Bitcoin entered the hearts and minds of 9.45 million TV viewers during The Good Wife Episode 59 - “Bitcoin for Dummies” - introducing the virtual currency and its many mysteries to the masses. Over the years, Bitcoin’s had its fair share of booms and busts, but Bitcoin’s USD valuation from Sep1 2016 to Sep1 2017 (866% increase) now has even the globe’s leading financiers paying attention.

What was first used by nerds to buy pizza is now discussed and debated in almost every city, every Statehouse, & every office of government around the world.

“Bitcoin is the end of financial discrimination and segregation based on nationality and political privilege…there are no artificial barriers to entry, you are not asked for any papers, there are no unnatural restrictions preventing mutually beneficial transactions. Basically, if you’ve got value to offer, you’re in business!” ~ Tuur Demeester

The AOCS Approved Copper Bitcoin

In the years since first strike, the iconic design has gone on to become the most widely used pictorial representation of Bitcoin, cryptocurrencies and blockchain technology.

To commemorate the virtual currency, the American Open Currency Standard created an iconic physical manifestation of Bitcoin in 999 fine copper. The coin featured an interpretation of the Bitcoin symbol, integrated with digital computer circuitry and the text “BITCOIN • DIGITAL • DECENTRALIZED • PEER TO PEER”. The reverse of the coin continued the circuitry elements, along with the text “AOCS APPROVED”, the mark of authenticity added to every coin minted under the authority of the American Open Currency Standard.

Over the years, millions were minted, and the design inspired dozens of variations, all featuring some elements of the original AOCS Approved Copper Bitcoin.

Fad or FinTech’s Future?

Cryptocurrency’s meteoric rise to fame has minted its share of millionaires, but it’s volatility and ambiguous “asset or currency” classification has made the landscape difficult to navigate.

Bitcoin’s staunchest supporters cite the limited mineable supply vs. the total value of the global financial market as reason to double-down and continue investing, while mainstream financial gurus predict a Bitcoin bubble, the likes of which not seen since the days of Tulipmania.

Regardless of which side of the debate you’re on, two things are certain:

Bitcoin is Just a Tiny Blip on the Global Financial Market Radar

Bitcoin’s staunchest supporters cite the limited mineable supply vs. the total value of the global financial market as reason to double-down and continue investing, while mainstream financial gurus predict a Bitcoin bubble, the likes of which not seen since the days of Tulipmania.

Blockchain Technology & Distributed Ledgers Aren't Going Away

Bitcoin’s underlying technology - the “blockchain” - isn’t going away anytime soon. The idea of a peer-to-peer immutable ledger appeals to those skeptical of the big banks, and is helping “cryptofy” traditional assets (both tangible and intangible), ensuring proof of ownership is distributed across nodes on a network as opposed to a single, ‘trusted’ authority.

Fortunately, the explosive USD value of cryptocurrencies in general has ushered in a shift in the way we – bankers, governments, and ordinary people – think about money. And all over the world, enthusiasts race to develop applications and support services like currency trading platforms, exchanges, payment gateways, mainstream finance interconnections and much more – technologies useful for Bitcoin, similar protocols, and other decentralized monetary systems. Today, thousands of competing cryptocurrencies circulate alongside crypto-assets, using (and misusing) blockchain technology, all in the interest of ending the chokehold held by bankers for more than 100 years.

The road to financial freedom is still bumpy. Cryptocurrencies and their usage are plagued by problems: hot wallets are hacked on a regular basis. Passwords are forgotten. Currency exchanges go bankrupt, hardware & backups fail, while offline paper wallets get destroyed in fires and floods. And these are troubles faced by even Bitcoin’s biggest fans; many more want to join the revolution, but have no idea where to even begin.

Regardless, eyes still light up and heads still turn at the mere mention of Bitcoin. Despite the risks, most people are still eager for a piece of the reward.

Boarding the Bitcoin Bandwagon

As leaders in the precious metals & coin industries, our team has minted and marketed millions of coins since 2008. Our product lines include the Frazetta Legacy Collection, Silver Hobo Nickels, the Silverbugs series, Silver Bullet Silver Shield, Cannabis Coins & much more. Each product we produce is minted to the highest quality standard, and today we market primarily through the world’s two largest coin dealers - JM Bullion and APMEX.

Over the last few years, precious metal markets have grown stagnant. The price of metals has held steady, which is exactly what investors say they expect from precious metals: stability & safety during turbulent market times.

Over the years, millions were minted, and the design inspired dozens of variations, all featuring some elements of the original AOCS Approved Copper Bitcoin.

Gold $/oz Jul 2013 - Sep 2017

Gold $/oz Jul 2013 - Sep 2017

Staunch supporters of the “if you don’t hold it, you don’t own it” mentality, precious metals enthusiasts have largely stayed on the sidelines, all while cryptocurrency posts once-in-a-lifetime returns for tech-savvy enthusiasts & early adopters.

It’s no doubt that many precious metal buyers are looking to dip a toe into the Bitcoin pool. With our world-famous design, our team is creating the perfect instrument to bridge the gap between two ends of the investment spectrum: we combine mundane metals & the crypto craze in an embedded-wallet coin.

Introducing Cold Storage Coins

When someone thinks of Bitcoin, they don’t think of 0’s and 1’s strung together in a long chain.

When someone thinks of Bitcoin, they think of our coin.

When someone searches the web, or looks for a stock photo to use for a research report, or reads a news article, the first image they usually see is our coin.

Our team has been designing & manufacturing coins since 2008. By combining our minting excellence, distribution network & technical savviness, we’re able to offer something new.

Cold Storage Coins are an intrinsically valuable way to store, protect & preserve your cryptocurrency. There’s no hardware to crash, no passwords to protect. They’re hack-proof & fire-resistant. They won’t go bankrupt, and best of all, they’ll never be worthless.

Minted in silver, copper & gold, Cold Storage Coins are the easiest way to own Bitcoin.

The obverse of each Cold Storage Coin features our iconic, world-famous design, while the reverse features a unique QR code, representative of the coin’s wallet address, securely printed on a tamper-evident holographic sticker. Underneath the sticker, the bare metal is laser-etched with a QR code, representative of the wallet’s private key, along with a shortened, unique version of the matching wallet address.

Cold Storage Coins are....

Reliable: with no hardware to fail & no hard disk to crash, copper, silver & gold won’t rust, are resistant to corrosion and can survive floods, household fires and even up to 30% defacing of the laser-etched QR code before becoming unreadable.

Laser-etched: forget about trying to remember passwords. The wallet address and private key are both permanently marked on the surface of the coin, removing forgetfulness and human error from the equation. The private key is secured beneath a state-of-the-art, tamper-evident holographic sticker, difficult to counterfeit or remove without evidence.

Offline: most crypto-enthusiasts will quickly agree that the safest way to store Bitcoin long-term is through the use of cold storage, a term given to wallets inaccessible from the internet. Your Cold Storage Coin is all you need to retrieve your cryptocurrency from the blockchain when you’re ready to use it.

Investment-Grade Metal: crafted from 999 fine copper, silver and gold, Cold Storage Coins have three values - the value of the wallet embedded on the coin, the value of the metal itself, and the value of the collectible coin, the last two of which remain long after the cryptocurrency is redeemed.

Yours to Hold: don’t trust the online exchanges or hot wallet providers to stay in business long enough to see your investment pay off? Eliminate hot wallet counterparty risk by placing the power of the blockchain in your own hand, pocket or safe; bury it for added protection.

Bitcoin: Hold it. Own it.

Markets with limited access to technology: regardless of whether the barrier is natural or artificial, enthusiasts will look to collect Cold Storage Coins in copper, no longer requiring portable electronic devices or access to the internet to participate in the global currency revolution.

Market Opportunities

Crypto-curios bullion stackers: as leaders in the coin market, it is easy for us to create and market Cold Storage Coins in silver & gold through existing sales channels to buyers of precious metals.

We expect these customers will value the opportunity to hedge their cryptocurrency risks with the underlying metal investment. For a small, one-time fee, they’ll accumulate Bitcoin and other and blockchain assets, while eliminating much of the counterparty risk and other indirect costs of ownership. Stackers can embed a digital asset on a coin, place the coin in the safe, and come back years later to review how the coin’s digital asset performed.

Emerging Currencies & Assets: instead of relying on ICO participants to figure out how to acquire a new offering, digital assets can be embedded onto Cold Storage Coins, providing the buyer with a tangible representation of their investment and the seller with a marketable souvenir to commemorate the transaction.

Competitive Advantages

Offline wallets are not new.

In fact, they’ve been around as long as Bitcoin. But with Bitcoin exploding in popularity, and little being done to simplify and safeguard participation, now is a great time to introduce Cold Storage Coins. And while others will surely attempt to enter the same space, our team has several important advantages that will keep us far ahead of the field for years to come.

Few can compete with our...

Brand Awareness.

Our team designed the most iconic & well known representation of Bitcoin in 2011. It is the recognized Bitcoin image.

Manufacturing Skills.

With nearly 10 years of minting and precious metals industry leadership, our experience consistently results in a top quality product.

Alt Currency Expertise.

In August 2012, our founder testified at Congressman Ron Paul’s final Domestic Monetary Policy Subcommittee regarding “Parallel Currencies: the Roadmap to Monetary Freedom”.

Technology Leadership.

With a strong focus on process automation, our manufacturing costs will continually decrease, allowing us to keep our product competitively priced while staying profitable.

Keys to Success

Building on the characteristics inherent to our product that make it likely to succeed, there are several areas our team is focusing to ensure success.

Low Manufacturing Costs

As volume increases, our production processes will improve so that we can continually drive down our wholesale and retail prices, making Cold Storage Coins affordable to customers in second and third-world countries at hundreds of thousands of small retail outlets. As our recurring revenue model comes to fruition, it may even be feasible to give away an introductory product.

Trustworthiness

Cold Storage Coins look & feel professional, clean & reliable. The tamper-evident hologram is both difficult to counterfeit and visually pleasing. The security features are reliable and obvious. The QR codes scan quickly and reliably, even after deliberate destruction. Customers know their digital asset is accessible to them right when they want it. Product packaging is sleek & easy to market in a retail environment. Product instructions are clear and concise, translated correctly into several languages.

Bitcoin's Popularity

The price or value of Bitcoin is inconsequential to the success of our project. However, we do need the interest in Bitcoin to continually grow, regardless of the price booms and busts. Although this key to success is external and not under our direct control, our growth is hinged on the continued popularity of Bitcoin in general.

Meet the Founder

In 2007, Rob Gray founded the American Open Currency Standard, uniting regional silver barter networks into a cohesive national movement.

By working with local community currency issuers, Native American tribes, nonprofit organizations, political activists and many other groups, Gray grew the AOCS into the leading advocate for alternative and complementary currencies, helping create hundreds of different silver-backed monetary systems in the USA and abroad. In August 2012, Gray testified in front of Congressman Ron Paul’s final Domestic Monetary Policy Subcommittee hearing regarding “Parallel Currencies: the Roadmap to Monetary Freedom” as an expert witness on silver, copper and gold currency systems.

Disenchanted by the American political and business landscape, Gray and his family left the USA at the end of 2013. After evaluating Indonesia and Singapore, Gray chose Thailand as home for his new endeavour, Heads or Tales Coins & Collectibles (HotCo.co), capitalizing on the region’s talented master silversmiths for the creation of a new product line - investment grade silver statues. In less than two years, Gray’s line of statues became the industry standard for silver collectibles, successfully marketed through bullion dealers worldwide. Now, with industry-leading product lines established for both coins and statues, Gray and his team look to increase their dominance in the precious metals fabrication space by leveraging their industry knowledge, distribution channels & manufacturing resources to quickly launch Cold Storage Coins.

Get Involved

To ensure our success, you are invited to participate in the journey, as we grow Cold Storage Coins from “inspired by the most famous bitcoin design” to…

“the easiest way to own Bitcoin”.

We’re looking for partners that can help promote our product online & at conferences, vendors that want to distribute Cold Storage Coins, and companies active in the blockchain space that want to customize a Cold Storage Coin. Either way, pay us a visit in Singapore or Contact Us today to get involved!

In the free market, as good ideas flourish and bad ideas are rendered obsolete, the trend towards decentralization is in motion and will come with both risks and rewards.

But in the end, the result just may be, after thousands of years of marching steadily towards darkness – the return of value to where it belongs...

...in the hands of the productive.

“As the value goes up, heads start to swivel and skeptics begin to soften. Starting a new currency is easy, anyone can do it. The trick is getting people to accept it, because it is their use that gives the “money” value.”~ Adam B. Levine

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