Cryptocurrency is the new ‘It’ money used globally for various reasons. It may take some time for the fiat currencies to be taken over by the Cryptocurrencies but the switch has started its course.
As they are already helping by being an investment and utility option. Services like Smart Contracts and Escrow services can be used only by Cryptocurrencies. This was made easy by the advanced technology of Blockchain.
Blockchain is the out-of-the-box technology which has changed the entire scenario of digital currency.
Satoshi Nakamoto invented the Blockchain technology in 2008 since then the technology has done wonders to bring in many cryptocurrencies. His identity is still a mystery but the use of his technology is helping almost all sectors of the trade.
There are many ways that cryptocurrencies help budding entrepreneurs. Some of these are:-
Cryptocurrency is the disruptive technology that has changed the way funds are raised during the initial stage of start-up. It has introduced ICO as the go-to medium to raise capital. ICOs stands for Initial Coin Offering that can be offered to any investor in exchange for their investment. This prevents the startups from selling or sharing a stake of their company to the investors.
Ease of Transactions:
Cryptocurrency allows peers to transact without any interference from a centralized authority. This proves to be a simpler, easier and cost-effective method of transactions to the startups. It can be used as an alternative to the regular methods of payment between networks.
Investment for the future:
For any budding startup, cryptocurrencies are a gold mine for the future. Not just them, anyone looking to partake in investment opportunities can join the network and invest. This takes the monopoly of venture capitalists and angel investors away and provides a chance for retail investors to invest in any breakthrough technology. This would not be possible with the traditional private venture fundraising.
Adaptation of Blockchain:
Blockchain is the technology that enables budding entrepreneurs in initiating startups to develop new business opportunities. And that too without any centralized authority. Blockchain technology promotes a sense of security and transparency for startups. Platforms like Ethereum have started offering companies an opportunity to use blockchain for free and to develop applications quickly using it. Blockchain allows a decentralized way of building applications and giving global reach.
Network with Blockchain Community:
Access to the blockchain community opens new doors for startups. You can interact with the world’s topmost entrepreneurs, developers, and investors who are actively participating in the blockchain investing, consulting and building upon the blockchain.
There are many countries like India, that have recently taken an initiative to promote blockchain in their respective countries. Furthermore, some countries are also investing in building their own cryptocurrencies as well.
We can say that Cryptocurrency is a lifeline for the startups to raise funds and capital and provides an opportunity to go and secure their future. The boost in the startup ecosystem can be seen as real and result-driven so far.