What is Bancor (BNT)?
Future of BNT Cryptocurrency and know how to buy BNT

What is Bancor (BNT)? 

#1: What is Bancor?

Bancor: The Basics

  1. Likely inspired from the supranational currency of 1940-42, Bancor is a decentralized liquidity network that seeks to allow for cryptocurrency exchanges and transactions without the need for exchanges.
  2. Bancor provides a cheap way to convert from one crypto coin to other thanks to an innovative product that involves no buyers and sellers in a transaction.

Heard about XE[DOT]com? It’s a website that tends to offer the most accurate valuation of a particular currency in other currency formats.

On a similar model, Bancor provides the closest valuation of a cryptocoin in terms of another crypto coin with no counterparty selling or buying. If you are interested in this built-in conversion program, you may want to sign up for a Bancor wallet that offers automated token conversions directly from within the wallet.

Bancor Development

Bancor was launched in 2017 by Eyal Hertzog. It received support and backing from billionaire venture capitalist Tim Draper. It’s important to note here that they were building a decentralized liquidity network and not a decentralized exchange. It was an entirely new take on cryptocurrency trade, and really, all trade in general, leveraged via the power of Smart Contracts.

 

#2 - Benefits of Bancor

Bancor Technology / BNT Technology

  1. Completely out of the cryptocurrency market, the BNT Protocol uses smart contracts to create Smart Tokens, which internally process different ERC-20 tokens.
  2. These smart contracts hold different kinds of cryptocurrencies within them as a reserve and exchange them for the user whenever requested to do so. This way, they are removing the need for a buyer and seller in a transaction.
  3. The Bancor protocol supports Ethereum’s ERC-20 standard which otherwise means it can literally convert any coin which has a parent coin or predecessor complying with the ERC-20 standard.
  4. The Bancor coin (or BNT token) is used across the network as the standard measure for conversions. The Bancor Formula denotes the ongoing rate for conversion for coins to and from the BNT token.

Use cases

  1. The Bancor Protocol enhances the transparency among different cryptocurrencies by removing the need for selling or buying of an equivalent amount via third-party sources in a cryptocurrency market.
  2. Bancor saves one from manipulation and offers the best equivalent currency using Smart Tokens, where the rate is calculated by an unbiased collection of formulas and algorithms.
  3. Bancor maintains a Constant Reserve Ratio (CRR) in all Smart Token contracts which in turn saves it from exhaustion. It’s perpetual.
  4. BNT also has its own native ICO named Bancor Network Token (aka BNT coin) as one of the first Smart Tokens on the Bancor Network.

 

#3 - How to buy Bancor or How to buy BNT?

  1. BNT mining isn’t possible since it is an ERC20 token on the Ethereum blockchain.  It can also not be purchased via any fiat currency. Instead, it must be bought using other cryptocurrencies which it is paired with on popular exchanges.
  2. This can then be converted into the Bancor cryptocurrency via the Bancor web app. You can get your hands on BNT coin via platforms such as Binance, Bittrex, Gate.io, OKEx, and more.

Buy Bancor Tokens via CoinSwitch

  1. While cryptocurrency exchanges provide you a platform to buy or sell the BNT cryptocurrency, CoinSwitch, best cryptocurrency exchange comes in to help you make the right decision by providing the prices for  BNT on multiple crypto exchanges. It supports more than 140 coins and 45,000 pairs of cryptocurrencies. You can choose whichever pair you want with your token and compare the prices at exchanges. This way you can choose the best deal for you!
  1. What’s more - with CoinSwitch, you do not rely on a separate BNT wallet from the exchange to store your BNT cryptocurrency. Instead, all transactions happen to and from your own personal private wallets, the benefits of which we’ve spoken about here earlier.

BNT Storage

Being an ERC20 token means you can store Bancor in any Ethereum wallet. The most popular such wallets are the online service MyEtherWallet, or for desktop applications - check out Parity, and imToken.

 

#4 - What is the future of Bancor?

Bancor is not just a coin, but much more. It has a clear vision on increasing the accessibility and liquidity of the cryptocurrency market. Such a platform with high mobility will help accelerate the transition to cryptocurrency adoption for people.

However, as far as the ICO is concerned, the future prediction might not work straight. Around the same time last year, the Bancor ICO (BNT valuation) raised a hefty sum $153 million in some hours. In November the amount crashed down by 56%. The BNT coin has fluctuated in value from a high of about $10 to $4.

BNT Price History

Date

Open*

High

Low

Close**

Volume

Market Cap

Jun 01, 2018

4.00

4.08

3.94

4.04

7,836,800

201,777,000

Apr 01, 2018

2.26

2.29

2.08

2.18

3,586,730

96,582,500

Feb 01, 2018

6.92

7.18

6.14

6.43

16,943,600

205,947,000

Dec 01, 2017

2.44

2.60

2.31

2.54

2,934,080

73,004,100

Oct 01, 2017

2.31

2.38

2.21

2.34

2,128,430

69,267,400

Aug 01, 2017

1.87

2.10

1.72

2.02

1,499,590

56,053,400

Jul 01, 2017

2.87

2.89

2.59

2.70

3,321,100

85,976,300

Also Read: Complete Analysis of Bancor | Live Bancor Price Charts & Predictions

 

#5 - How is Bancor different from other cryptocurrencies?

Let’s start with the example of an internal currency which might be applicable only to a certain bounded region:

  1. If you go back in time you would find that different dynasties and subregions used to have their own gold, silver or copper coins. They were not standardized or they did not know how the valuation of gold coins will be equated with the copper coins.
  2. In today’s world, currency is the physical form of money that can be exchanged in a successful trade. These currencies, although varying from one region to other, are matched with a certain specific currency unit (for example US dollars).
  3. Bancor, on the other hand, is a digital currency unit and also a blockchain platform, that can be equated with different cryptocurrencies simultaneously. It removes the need to find a buyer or a seller when you want to exchange a cryptocurrency.
  4. Instead, it lets you do this via smart contracts that are perpetually loaded with the cryptocurrency of your choice.
  5. The BNT token isn’t a store of value (like Bitcoin), but a facilitator of value.

 

#6 - Should you invest in Bancor?

If you compare Bancor cryptocurrency with other cryptos such as Bitcoins, it can be argued that it is a more stable investment, as it holds reserves to protect its own value. This may lead to slower, but steady gains in its price over time - far more reliant than the volatility the cryptocurrency market generally exhibits.

In the context of the nature of the cryptocurrency market, it should not show a sharp rise or fall in its valuation. If features such as continuous liquidity, lower fluctuation, predictable price slippage, and hassle-free conversion attract you, then you can safely put your faith in it. If the idea that this would attract the masses (which it should - it’s a radical idea after all - the eradication of exchanges) interests you, then you may be well placed to invest in the BNT coin.

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