How Cryptocurrency Can Help Start-ups Get Investment?
Cryptocurrency was unheard of a decade ago, and only the most tech savvy people knew about it. The whole cryptocurrency world believed that this would be another bubble but surprisingly they were wrong. In less than 10 years’ time there has been an immense growth spurt for blockchains which saw more funding rose via initial coin offerings (ICOs) during two boom periods than at any other point over its lifespan.
When Bitcoin first climbed to an all-time high of $20 000, it started a significant trend that put several lesser known names at the map including Ethereum and other top ten crypto projects. This historical moment prompted early adopters who increased their investments in order for them not only capture attention from business owners but also increase profit margins due encouraging numbers.
Businesses should consider the benefits of cryptocurrency and how it can be an attractive investment for them. In this article, we explore what businesses might want from cryptocurrencies as well as some ways in which they may invest their money with these new technologies.
What are the benefits of cryptocurrencies for startups?
Cryptocurrencies are a revolutionary way for startups and entrepreneurs to raise capital, invest in savings or transact value. The blockchain technology that powers them has been heralded as one of the most important inventions since banks were created — never before have we seen such an advancement with our finances.
Attracting capital.
Cryptocurrencies have been a disruptive force in the way early-stage enterprises raise capital. Since their inception, companies have benefited from accessing an unparalleled pool of investors with cryptocurrency exchanges. It’s making easy for them to trade shares immediately after issuing them which allows large amounts liquidity bring into new listings on these platforms. The rise coins at alia created by disrupting pre-launch startup fundraising methods were largely responsible why valuations became transparent almost instantaneously.
The crypto industry has been revolutionized by new approaches to raising capital. This transformation began with the ability for any developer, not just those at prestigious firms like Google or Facebook can create their own business on this platform. 2014 saw one such instance when teenager Vitalik Buterin raised money through an initial coin offering (ICO) for his startup Ethereum, now worth $136B total market cap. He sought improve Bitcoin’s Blockchain via developing practical applications that were progressive compared against other cryptocurrencies available at the moment.
Value of transacting.
Small businesses that accept cryptocurrency payments have seen their profits rise as the number of people using these currencies grows. The increased popularity and trader demand for crypto has led many companies to develop custom blockchains just so they can process transactions faster than ever before with minimal fees attached.
Nowadays, many businesses can get started with just a few clicks of the mouse. In 2014 alone Overstock became an early adopter and begun accepting Bitcoin for payments on their website generating over 800 orders worth $126 000 in BTC within twenty-two hours.
Investing in technologies.
Cryptocurrency is giving entrepreneurs and investors alike a chance to invest in companies that could very well be the next Facebook or Google. Entrepreneurs have been historically unable to get their hands on early stage funding, but now anyone can make an investment through cryptocurrency with little risk because there are no fees involved. Crypto is not just for grownups anymore. It’s a new gateway that allows anyone globally to invest in some of the world’s most revolutionary and exciting technologies, with an opportunity at owning shares from high-growth companies.
Blockchain development.
Blockchain technology is a disruptive force in the world of business, providing an infrastructure that allows companies to run their systems without relying on any central authority. For example, Ethereum offers enterprises with quick and easy development capabilities for innovative new applications which can be free or inexpensive depending upon how they are designed. It has already revolutionized several industries including finance.
The blockchain is an excellent way for startups and entrepreneurs alike, with its cost-effective services to provide banking access in developing countries. This could help poverty stricken communities around the world by breaking down barriers that prevent them from financial inclusion. A payment company called “OmiseGo” has been using this technology as well — they’re currently providing unbanked populations across Asia Pacific their much needed service: bankrolls. With so many people living outside of country’s regulated economy it only makes sense we take advantage if opportunities such as these ones offered through tech innovations.
Community use.
The blockchain and cryptocurrency community has seen a surge of big name investors such as Facebook, Telegram, WhatsApp. These companies are now looking to develop communities that focus on decentralized finance — investing quickly with huge opportunities available for early-stage startups in minutes.
The future is looking bright for entrepreneurs who want to take advantage of cryptocurrency as a means invest in startups. Not only does it have the potential attract new customers and additional investors, but investing into crypto can also increase your company’s value. And there are no fees attached at all because everything happens through blockchain technology so transactions won’t cost anything extra either way.
The future is looking bright for entrepreneurs who want to take advantage of cryptocurrency as a means invest in startups. Not only does it have the potential attract new customers and additional investors, but investing into crypto can also increase your company’s value. And there are no fees attached at all because everything happens through blockchain technology so transactions won’t cost anything extra either way.
