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RE: Why Bancor Will Work?

in #bancor8 years ago

Honestly, I see this as a great idea. When people think about cryptocurrency, they imagine Bitcoin, Ether, Ripple, etc. But fail to think about the long tail. Yes, it's important to have Bitcoin, as it's to have the USD or Euro, and others. But think small here, think of a westside market for example. People selling their own goods, straight from the farmer to the consumer, because they want you to enjoy fresh out of the land products.
They could create a token to trade these products. Let's call it MRK Coin.

And you can think, well, but why would I get MRK when that coin can only be used in the Westside market?

That's where Bancor solve the liquidity problem and the ability to use a decentralized platform to exchange MRK into any other token (coin) or to simply sell back the MRK you didn't use at the Westside Market. How? Simple; because each token created will have a reserve in another token. Like BNT or ETH etc. So, think of this as an insurance where you won't simply buy a new token that nobody knows of and that has no value. Instead, new tokens have their liquidity problem solved. Therefore, you know that you are investing in a token that will guarantee you products from the Westside market, but also that you can exchange, or sell back and have your money back.

Bancor idea is innovative, and as such, it's difficult for some people to comprehend and even to adapt to it. But think of Tesla for example, how many people believed in them when they started? To the point that they almost disappeared, yet look at them now. Leading the cause into renewable energy. Bancor comes to solve a problem that we are having in cryptocurrency today. The max explosion of new coins that offer virtually no value, and that many times only the developers end up making real money. How many people are investing in coins that have no concept or use at all? Other than, hey, here I am, buy me, I am the new Bitcoin. Bancor idea is a genius one, and will attract the average investor to the ecosystem, you know, those who are not programmers or tech savvy.

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Well said @willsann! Thanks for the detailed comment.