If you just heard about cryptocurrency you should know that there were more than 900 cryptocurrencies available over the internet as of 11 July 2017 and growing. New cryptocurrency can be created any time.
Picture it just like YouTube. As of now there are millions of videos available to watch and about 300 hours of video are uploaded to YouTube every minute. Almost 5 billion videos are watched on YouTube every single day.
If you calculate the number it is almost impossible for “long-tail videos” or channels with low number of subscribers or low demand could have the possibility to be watched. In fact YouTube gives the same ability to everyone so that his or her videos could still be published and watched by the same audience around the world.
Collectively, all of those long-tail videos make up a total number of views exceeding that of current top performers combined.
This is what Bancor Protocol is all about, to give the same power, the same tools and the same opportunity for any kind of cryptocurrencies to be liquid and have the same liquidity with that of other top cryptocurrencies like Bitcoin or Ethereum.
We all know that currently people can only liquidate their tokens or cryptocurrencies through exchanges like Poloniex or Bittrex. Aside from the hassle and time consuming process to sign up, deposit money, withdrawal, etc. There still no solutions for instant liquidity where anyone can liquidate their tokens anytime without the need of 3rd party exchanges and with lower or no fees.
The Double Coincidence of Wants, the difficulty to find two persons whose disposable possessions mutually suit each other’s wants, is actually the real issue that creates the dependence on third party exchanges. Failure of the third-party providers to provide adequate services could result in significant losses of revenue for all stakeholders. It happened to MtGox and BTC-E.
The problem with current system is that the majority of cryptocurrencies are facing liquidity problem. Not to mention that there is still technical difficulty in the creation of a cryptocurrency.
So even though these currencies were creating value for their community or for their holders but since they were too small to achieve the trade volume needed for liquidity then they will never become liquid. This is a serious issue because we are witnessing an inequality for long-tail currencies or those with low demand but yet give significant value for a specific community.
Bancor Protocol provides a platform which makes it easy for anyone to create their own currency or we can call it User-generated Currency.
If you familiar with User-generated content like blog or videos that were published every day using WordPress, Blogspot or YouTube then that’s how User-generated currency works. You can create a cryptocurrency for your own purpose or your own community as easy as creating and publishing a blog.
It’s been for too long that the creation of cryptocurrency just limited to those with programming skills. But it is now come to an end.
Just like Webs.com gives you the ability to build your own website which previously limited to those with web-development skills, that’s what Bancor Protocol provides to those who want to create their own currency and give impact to their society.
The power of Creation and Liquidity is what people need to access the fair distribution of wealth in society and the fair transfer of goods and services within the community.