Could Bananacoin Change the Way we Invest?

Could Bananacoin Change the Way we Invest?

The biggest word of the year so far has been cryptocurrency. While Bitcoin takes most of the limelight, several altcoins are making millions of dollars and the market has never been bigger. One of the most important things to come out of cryptocurrencies so far has been the technologies themselves. Things like blockchain and the encryption offered will help revolutionize services like online banking and investing. Meanwhile, some people are riding the cryptocurrency bubble and making use of blockchain to gather investors on very interesting projects. That is where Bananacoin fits in.

At first glance, Bananacoin seems like one of the meme coins floating around the internet right now (see: dogecoin), and just created as an oddity. However, upon closer inspection of their website, the project is actually much more interesting. Bananacoin is using blockchain technology as a way to gather investors to fund their project. So what is their project? Well, they have created an eco-friendly plantation in Laos, where they grow Ladyfinger bananas, and export them to China. According to their website
“The deficit of banana export to China is estimated at 30,000 hectares, and the consumption is increasing”
The coin itself is tied to the export price of 1 Kilogram of bananas, and in the short amount of time I have followed the project, the price has increased from $.5 to $.7 USD. It seems to me that as an investment, it can use the blockchain technology and the cryptocurrency name to raise a lot of money, and maybe have some unknown side effects.

Something Bananacoin could do well that wasn’t foreseen, was the potential to be used as a teaching tool for investments. For a beginner to the stock market, it can be incredibly intimidating to start. With just a few dollars, you can barely get anywhere and you won’t know where to start. Bananacoin acts as a watered down version of the stock market. To quote their website:

“The Token holder can trade 1 bco for 1 kg of lady finger bananas which we will grow or receive a compensation equal to export price of 1 kg of lady finger banana sold to China (up to 3.5 USD)”

This is a great way to enter investments with something tangible and practical, and you don’t need a lot of money to do it. For some larger stocks, you will have to sink yourself 100s of dollars per share, and you are expected to buy stocks in 100 share packs. With Bananacoin, you can buy as many or as few tokens as you want, and then that is the number of tokens you have. You can have a child give you a dollar, and then tell them they have x number of tokens, and then as it goes up, tell them they made x amount of money. This is a very simple thing that anybody can understand, and can be a great entry point for investments and stocks.

Bananacoin also shows applications of the blockchain technology outside of cryptocurrencies. Bitcoin and Ethereum are well and good, but society isn’t ready for a completely new currency, so it is naturally going to fade. The technology developed, however, can be great for investments as Bananacoin shows. It used the premise of a currency to simplify investing, and then makes use of the blockchain technology to improve it.

 

Bananacoin may at first glance just look like a joke that is using the guise of cryptocurrencies to gain virality, but it is actually much deeper than that. I see it as the future of investments, streamlined for more simplicity through the eyes of the user, and backfilled with complex encryption and blockchain software. Limited amounts of each investment can lead to more value and change the way we trade, while miners can be used to speed along transfers and make a little bit of money on the side. While I can’t see us dropping the US Dollar, the Euro, or other widely accepted currencies for something as unstable as Bitcoin, I can see our stocks and companies like Bananacoin making use of this technology to shift the way we invest.