In 2018, Cryptocurrency Can Facilitate Entrepreneurs In These 5 Ways
Feb 20, 2018 Posted / 3880 Views
Cryptocurrency is called an evolution of the Financial industry which has changed our ways of raising funds, investing our savings and making transactions. The technology behind virtual coins, the blockchain technology is a life-changing invention which has transformed the ways of presentation of financial records. Here are five reasons why entrepreneurs should adopt blockchain technology.
With the emergence of virtual tokens, the process of fundraising for startup companies has also become simplified. Unlike previously, now one can raise investment for its business from a wide pool of individuals who like the business idea. Under the process of crowdfunding, a company issues a tradable token in exchange for liquidity. The issued token is called Initial coin Offering (ICO) whose value increases according to the value and tradings of a company. The virtual economy provides a platform for investors and entrepreneurs. Vitalik Buterin, founder of Ethereum is a fine example of using ICO. A teenager wanted to build a stronger version of Bitcoins blockchain where on could build unstoppable applications and successfully raised $8 million through a white paper and vision. In January 2018, Ethereum was valued at $100 Billion.
The main motive behind the introduction of Cryptocurrency was to enable peer-to-peer transaction from one point of the globe to another. As we know that there is no centralized authority controlling the circulation of cryptocurrency which makes the transactions cheaper and faster as compared to a traditional form of payment. With the passage of time people are accepting virtual tokens as a mode of payment and as per experts within few years the startup ventures will not need to set up a business bank account to distribute Funds. Overstock became first of its kind in 2014 by accepting Bitcoins as payment for 800 orders worth $126,000 in first 22 hours of opening.
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Traditionally, entrepreneurs and retail investors did not get an opportunity to make an investment in prevailing technology at an early stage of organization and enjoy good returns on investment. With the appearance of cryptocurrencies in scenario everyone is able to put their stake in a company as per their wish. It does not matter who wants to invest and where they want to invest. In this virtual economy, no one is accountable to anyone which results in high-risk factor and thus high returns on investment as well. For example, a boy named Erik Finnman invested his money in Bitcoins in the year 2011 and turned into a millionaire at the age of 18. Such accomplishment in the field of investment would not have been possible in the traditional form of economy.
The blockchain technology, also known as the distributive ledger system provides a powerful virtual infrastructure building platform for companies. Here organizations can generate new business models and enjoy benefits of technology in absence of any centralized authority. One of the examples of such enhancement is OmiseGO which used Ethereum Blockchain platform to introduce banking service to two billion individuals.
By joining Blockchain Technology you get access to communicate with world’s leading crypto investors who are further investing, advising and generating Blockchain. Through this many big investments take place within a short span of time. For eg. In 2017, a $35 million offering of Brave's Basic Attention Token was closed in mere 30 seconds. The main objective of Blockchain members is to spread it globally.
The Blockchain technology has a wide scope and various uses which also lets cryptocurrency to work in an efficient manner. Through accepting this technology one can conduct a transaction in cheap and instant manner. Even small retailers rather anyone can make an investment in high growth technology companies and enjoy good returns on investment. Blockchain platforms like Ethereum provide a free access to Blockchain technology to build decentralized applications. By using all these features in an efficient manner, entrepreneurs can create a place for themselves in this world.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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