Cryptocurrencies are very dynamic in the way we can use them. While they were initially intended as a currency and medium of exchange, their wide applicability has made them more useful as investment options as well as secure IDs.
Savvy entrepreneurs looking to start a new business have seen the potential in cryptocurrencies and are experimenting with various use-cases to bring new products or services to the market.
Entrepreneurs in the financial world in general and tech-businesses in particular are aware of raising capital through crowd funding. Crowd funding allows business ideas and causes to raise their required amount of capital by getting small donations from a very large number of people.
Crowd funding was most popular in the software and gaming industry before cryptocurrencies became popular. As a result, various companies and game developers were able to raise hundreds of thousands of dollars for their projects.
However, in 2015, Bitcoin and other digital currencies began to get really popular and a lot of crypto developers used Initial Coin Offerings (ICOs) to raise capital. An ICO involves launching a cryptocurrency which buyers can later trade in when the currency has gained value due to the success of the venture and consequent increase in demand of the cryptocurrency.
ICOs have changed cryptocurrencies from digital money to stock in a company. As cryptocurrencies are easily tradable and secure from theft, they offer a better alternative to the traditional bonds and shares.
Future Investment for Businesses
Cryptocurrencies also provide a great opportunity of investment for individuals and businesses. Until recently, the financial markets were controlled by seasoned financial experts and major investment banks. These banks controlled the financial capital of the world, often manipulating the market to earn huge profits and bonuses for themselves.
When the financial system took a nose dive, the banks let the ordinary citizens pick up the check, as it happened during the 2008 financial crisis. Cryptocurrencies, on the other hand, allow entrepreneurs to make investments in new opportunities themselves without relying on financial institutions. A number of people have made huge profits by making smart investments in currencies like Bitcoin, Ethereum and Bitcoin Cash, etc.
Medium Of Exchange
Cryptocurrencies are easily tradable on major virtual currency exchanges. They offer a faster, cheaper and secure method of making purchases online. As most businesses are opening their own web stores it is becoming more evident that we need a better method of payment than the traditional banking system.
An increasing number of businesses are starting to accept payments in Bitcoin and other cryptocurrencies. Crypto experts believe that new businesses will no longer need to go through the long process of setting up a bank account to make transactions and cryptocurrencies will be the preferred method of payment, for online businesses.
The Blockchain Network
The blockchain technology offers many opportunities for new businesses to make money by further improving and developing the protocol. The blockchain platform allows people to build a layer of applications on top of the blockchain.
Users can create digital assets like bonds, stock, property titles and more that can be used to settle interbank payments.
Programmers can also build smart contracts that would get automatically executed when certain conditions are met by the contracting parties.
Charlie Shrem is a Bitcoin pioneer, a social economist and digital currency trader. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and serve as its vice chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and non-crypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. In short, he is the ultimate insider at the epicenter of the crypto universe.
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