The term ‘cryptocurrency’ became popular when the value of Bitcoin hit an all-time high last December. And even though other cryptocurrencies did exist at the time, it wasn’t until Bitcoin’s momentous rise that people started acknowledging other virtual currencies. Ever since we have heard about bizarre cryptocurrencies hitting the tech world.
In case you are not sure here are some weird virtual currencies that we have heard about– Useless Ethereum Token, FuckToken, Titcoin, TrumpCoin, and Dogecoin (yeah, they exist for real!).
And now another weird cryptocurrency is making the world go bonkers. It’s called– Bananacoins!
What in hell are Bananacoins?
Bananacoins is a cryptocurrency co-founded by Russian entrepreneur Oleg Dobrovolsky, Alexander Bychkov and agronomist Prasan Sangsatjatham. It distributes tokens based on Ethereum blockchain, a decentralised computing platform used for the cryptocurrency.
Every token in value is equal to the export price of 1 kg of bananas.
While writing this article on Tuesday, January 30, 3,748,245 tokens have been sold each of which is valued at 0.5 USD (Rs 32 approx).
But why ‘Bananacoin’?
In case you are wondering why in the world would someone create a virtual currency called a ‘Bananacoin’ then there’s something you must know. Unlike some cryptocurrencies, Bananacoin is a virtual currency with a purpose.
Bananacoin, in reality, is a stock of a variety of bananas known as ‘Lady Finger’ in Laos. Confused much?
Apparently, China is facing a severe shortage of bananas and the demand exceeds the supply by a wide margin, states a white paper by the organisation. While the country exports bananas from its neighbours including Cambodia, Thailand, and Vietnam, Laos, where the founders are based, has the ideal conditions for growing the healthy Lady Finger bananas.
So, the founders saw an opportunity and decided to harness the power of blockchain technology for supplying bananas to China and in turn earning profits for themselves.
What happens when a person buys a Bananacoin?
When a person purchases a token or a Bananacoin, the funds received by the company are used to purchase land for the cultivation of real bananas, which takes about 18 months.
If you purchase a token, you can ‘personally’ visit their banana plantations in Laos’ Vientiane Province. Also, purchase of a token also entitles you to receive monetary compensation of equivalent value.
Why should I buy Bananacoins?
Value of bananas has increased in the past couple of years. Growing demand in China and in developing countries will push its value even further. Besides being a stable investment option, it is ‘eco-friendly’ and easier to explain to your friends and family. Also, it costs way less than bitcoin which, as I write, is valued at around Rs 6,88,969 each– making it out of reach for many tech enthusiasts.