Blockchain Metal Company is tokenizing the ownership of copper with their first product the Cu Coin MBX; a negotiable electronic warehouse receipt programmed as an ERC-20 token and exchangeable for 1kg of Grade A Copper Cathodes at Blockchain Metal Companies' warehouse.
Storage fees are covered by a physical exchange fee (The fee totals to 0.5% of the LME Market Price on the day the copper is picked up). Initial Token Offering participants can benefit from the lowest prices for copper online and a bonus of Fee Token MBX acting as a discount coupon for fees on the Metal Blockchain Exchange and for the physical exchange.
But why should you invest in Copper?
Despite the fact that it's one of the most useful and reliable minerals out there, copper is a unique metal that is often overlooked by investors.
Spot copper prices are up over 320% since 2001 and it is very likely that copper prices will keep rising in the near future. The underlying systems for renewable energies are 5 times more copper intensive than fossil fuel reliant systems, and one charging station for electric vehicles alone contains 8 Kg of copper on average.
Copper is one of the "base" or industrial metals and has distinctive value in the global market due to its industrial business enterprise worth. It's an element known for its conductivity, durability and corrosion resistance. While Construction and electronics remain the main applications of copper, due to the mentioned qualities, it is used in almost every industry; Computers, cars, lightning units, plumbing and motors are a few examples of where can we find copper in our daily lives.
By 2035, Bloomberg projects a 43% penetration of electrical vehicles in the light-duty vehicle market, which will be roughly equal to 110 million cars and 3.6 million tons of extra copper demand – equal to about 15% of the current market.
As mentioned already, renewable energies consume 500% more copper than conventional systems. For every MW of wind power about 3.6 tons of copper is needed – and for every MW of photovoltaic solar capacity, about 4-5 tons of copper is required. Global demand for electricity exceeds 20 000 000 MWh and the trend is upwards. As we progress from fossil fuels to green energy, the demand for copper will see a significant boost.
Japan consumes about 12 kg of copper per capita. North America consumes around 10 kg, and Europe consumes 9 kg per capita. But the massive populations in Chile, India, Eastern Europe and South America are all still consuming less than 2 kg per capita.
While demand is likely to grow exponentially the supply side seems to be facing a crunch. Over 200 copper mines currently in operation will have reached the end of their productive life before 2035. Unless new investments arise, existing mine production will drop from 20 million tonnes to below 12 million tonnes by 2034, leading to a supply shortfall of more than 15 million tonnes.
There are no viable alternatives either. Aluminum has replaced copper in wires, conductors and various electrical parts, however, demand for both metals has soared and if you took all the aluminum stockpiles in the world, it would only be enough for nine days of global consumption.