With its unique and decentralized digital currency system, cryptocurrency has completely changed the way we raise capital, invest savings, and more importantly, how we transact value. The blockchain system is a serious financial technology breakthrough never witnessed in history and in 2018; entrepreneurs have a chance to maximally take advantage of this technology.
Thanks to cryptocurrency, entrepreneurs can now raise capital for their startups from a large pool of investors with just preliminary coin offerings. This is one of the quickest and cheapest ways to raise money ever seen in history. Moreover, company valuation reflects almost immediately in the market. Traditionally, company valuation used to be a tricky endeavor especially for businesses in their early stages.
This new method of raising capital has completely changed the business world and more importantly, it has enabled entrepreneurs with the best technical ability to build startups fast. For example, back in 2014, a Canadian teenager by the name of Vitalik Buterin managed to raise capital for Ethereum, his company, through preliminary coin offering. The young man’s idea was to advance Bitcoin’s blockchain by creating a platform where people could craft inexorable applications. He successfully raised close to 18 million dollars for his blockchain, which as of early this year was valued at more than $100 billion.
Investing for the future
Cryptocurrency is most certainly the best investment opportunity for entrepreneurs. Traditionally, retail investors had no such high investment access at the early stages of their companies. For the longest time, private angel investors together with venture capital funds have dominated entrepreneurial access to investment. However, cryptocurrency presents an opportunity for anyone to invest in one of the most exciting technologies in the world. For instance, thanks to blockchain’s decentralized method of investment, in 2011 a teenager named Erik Finnman managed to invest in Bitcoin.
With cryptocurrency, we can now transact without the need for a centralized authority. Cryptocurrency offers a cheap, more efficient and fast alternative to conventional networks of payment. Companies find accepting payments through cryptocurrency very efficient. Not only does it save on fees, but it allows faster settlement as well. Within no time, companies will no longer need to set up bank accounts in order to distribute and receive money. Back in 2014, Overstock.com was the first vendor to accept bitcoin. Within the first 22 hours, Overstock.com received more than 800 orders with an estimated bitcoin value of over $126,000. The company has since accumulated a cryptocurrency assortment of about $400,000.
Joining the blockchain culture
The blockchain society presents access to the best entrepreneurs the world can offer. These entrepreneurs are relentlessly investing, building, and advising the blockchain. WhatsApp, Facebook, Slack, and Telegram are used to build decentralized communities of blockchain investors. Through these social media groups, blockchain investors are able to communicate daily with one another. This allows for fast large investment coordination, a process that would take months in conventional venture capital. The blockchain community also creates a sturdy sense of belonging and purpose and all members are dedicated to a universal objective of progressing blockchain technology to worldwide recognition.
Developing on the blockchain
Thanks to blockchain, companies now have a strong infrastructure to run their technology. Additionally, businesses can now create trustworthy and entirely different business models without centralized authority. Furthermore, the blockchain system has already changed the way companies create value. For instance, the Ethereum enables startups to quickly create inexorable blockchain applications for free. OmiseGo is a perfect example of startups that have leveraged the Ethereum blockchain. The payments company uses blockchain to offer banking services to an unbanked world population of up to 2 billion people. The blockchain technology provides a well-organized and cost-efficient alternative to creating decentralized applications capable of scaling to the global population.
Cryptocurrency offers a perfect platform for global entrepreneurs to efficiently raise capital cheaply and quickly. Additionally, entrepreneurs are in a position to transact value at very high speeds through the blockchain. One crucial advantage provided by this platform is the limited setup costs. Also, entrepreneurs have a chance to invest in technology startups with high growth potentials at an early stage. With platforms such as Ethereum, entrepreneurs have the opportunity to create decentralized applications for the world population free of charge.
The blockchain technology presents one in a lifetime opportunity for budding entrepreneurs to interact with some of the best investors, successful entrepreneurs, and engineers in the world. With such resources, budding entrepreneurs stand to benefit and learn a lot. Not only do they get access to a large collection of worldwide investors, but by interacting with such great minds budding entrepreneurs are able to come up with completely different and new business models. In 2018, cryptocurrency will continue to create new ways for us to transact value. It will also offer a whole lot of feasible means for industrialists to add value to the world.