Cryptocurrency advantageous to Startups?
August 20, 2018 11:06 am,
Cryptocurrency has led to a change in thinking among people rich or poor in ways of how to transact value, invest our money and raise capital with the decentralized digital cash system.
Blockchain technology is an invention which has changed the world and forced many of the founders of the startups to think in the way to revolutionize the digital market and make maximum profit. In 2018, entrepreneurs have been the 1st to adopt this technology. Even though the ICO’s have slowed down, the number of professionals who have jumped at this opportunity is large.
- Raising capital: Cryptocurrency has changed and disrupted the way of companies trying to get investments. Now the digital market can easily obtain investment from the pool of global investors present. With this, the valuation of the company has been immediately reflected in the market which was actually a very tough and intimidating step for companies at the beginning stages. Shares are issued as tokens and almost immediately tradable, bringing the liquidity to the company. This new approach has led to the company’s growing at high speed.
- Transacting values: Cryptocurrency allows us to transact value between peers easily and at a very low cost. This cheap method provides an alternative to the traditional payment networks. As a growing company, using cryptocurrency payment allows it to be more efficient, saving the fees and bringing a faster settlement. Soon the time will come when there will not be a need for the startups to even set up the bank to receive and distribute funds.
- Investing for the future: For entrepreneurs investing in cryptocurrency is an opportunity for a lifetime. This digital market provides a gateway for anyone in the world to invest in the most interesting technology allows retail investors to have a part of the high growth company. For example Erik Finnman, who became a billionaire at the age of eighteen.
- Developing on blockchain: The blockchain provides a powerful infrastructure to run their technology and create an entirely new business model in a trusted way without a centralized authority. It is already on its way of modernizing the way in which startups create values. It provides a cost-efficient way of creating decentralized applications that can scale to the global population.
- Joining the blockchain community: The community provides a chance to interact with many of the world’s best entrepreneurs who are constantly investing, advising and building blockchain.