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RE: Bancor: The Power of Creation & Liquidity of Cryptocurrency

in #bancor • 7 years ago

I am not sure if creating tokens can change anything in economy and especially not the false distribution of property. Bancor seems still trading and speculation and no solution, sorry.

7 years ago in #bancor by
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     7 years ago 

    Let's say the residents of a small and poor town called Mena (just for example) agreed to create their own token, called Menacoin. And the community agreed that all stores and shops in Mena can use this Menacoin for any kind of transaction instead of just cash like dollars. And then this Menacoin distributed fairly to all residents of Mena.

    So now imagine the power of the community: People in Mena can live their daily live without using a single dollar of cash. And because of the fair distribution of Menacoin, all the poor people can now enjoy the same tratments and the same privilege like everybody else in Mena.

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       7 years ago (edited)

      Trading and speculations is one thing people do out of it. This is not an argument proofing it is no solution at all.
      Basically you have to know that the plattform is still under development so currently the token is to its major part just subject of speculations.

      Another thing to understand is how the mechanism of price discovery reduces the effect of shortterm hypes.
      This is - when there are good news and people notice, "oh bancor is cool" and like 100 people decide to buy in.
      On a traditional exchange market this will have a much greater effect because of the sudden scarcity of bancor tokens available. But for the bancor tokens they are always liquid and you may buy them anytime for the actual price without having a counterparty who wants to sell it or has then stashed. This means no scarcity less short-time hype driven pumps.

      So to this problem about liquidity it indeed is a solution.
      And then there is a huuge potential what those users may do with the tokens to get their economy going - lime the mena village :)

      Those use-cases are up to your imagination and I really recommend you to read the whitepaper, to have a base for this imagination ;)

      https://www.bancor.network/whitepaper

      And don't forget they are no simple tokens... It's a smart token. :)

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