Cryptocurrency has started to change the worldview of people in terms of transactions, payments and investments. With its decentralized mechanism, blockchain technology is all set to alter the current payment systems once and for all. And with ICOs rising as a tide, it will soon change the way markets are seen today.
In the year 2017, ICOs showed a quick and tremendous growth, it reciprocated the response in higher returns and proved to be an ultimate fundraiser for startups. Buoyed by the impressive results, a significant number of entrepreneurs are buckling up to jump into the ICO fest this year. There are number of reasons why cryptocurrency and its sub-products like ICO are getting immensely favored by budding startups.
1. Fund Raising – Raising funds for startups was never so easy before, ICOs have paved a way for many aspiring entrepreneurs and provided them a way to ensure the capital. It has turned the whole world into a single pool. The market instantly reacts to your project and rejects it upfront, if it is not worth. And if it’s the opposite, you can raise millions to expand your business without going through the hassles of finding an angel investors or soliciting the bank.
Although ICOs gained popularity in 2017, it was propounded in the year 2014 in Canada by a teenager called Vitalik Buterin. He launched world’s first ICO to raise capital for his startup with just a whitepaper and a vision, the effort and concept met with a success to astounding $18 Million. His company is now worth $100 billion as of January 2018.
2. Direct Transactions – The most revolutionary change that it will bring into our existing payment system, is the end of centralized control. Crypto transactions use a peer-to-peer mechanism which precludes all the intermediaries that consumed a considerable amount of time and money. It has brought the transaction fee to zero, which will boost the volume of trading. Organizations have even started to adopt the crypto transaction facility, companies like Microsoft, KFC and Overstock.com have started to accept bitcoins. With its rapidly increasing acceptance, many startups are expected to relinquish the setting up of bank accounts to receive and distribute funds in future.
3. Prudent Investment – Cryptocurrency has also proved to be an investment opportunity for lifetime. It has never happened in past that the emerging companies get access to the investors worldwide. The private angel investors and venture capital funds have always maintained a monopoly over investment in the top-notch technical geniuses. Cryptocurrency has removed the roadblocks which prevented many investors from getting into early seed investment. ICOs allow the whole world to see and participate in a new venture regardless of its scale. In 2011, Erik Finnman invested in Bitcoin and became a millionaire at the age of 18.
4. Blockchain Development – The advent of blockchain has shown new paradigms of security to organizations. Hemmed with a decentralized architecture, blockchains have embarked on a crusade to eliminate centralization from the current security systems and make it absolutely autonomous in terms of control. With its rising status, blockchain development has also emerged as a viable domain for technocrats and enthusiasts. Blockchains provide a global and cost-effective platform for building decentralized applications that are widely adaptable. For example, the Ethereum platform lets companies create limitless blockchain applications quickly and for free.
5. Blockchain Community Effect – The emergence of blockchain gave rise to community building of cryptocurrency and blockchain enthusiasts. These communities offer consultation on social media apps such as Telegram, Facebook, WeChat, Slack, Whatsapp and Reddit. They also act as a forum for open discussions on a new coins or ICOs. These communities are becoming a huge source of advertising as well, every new ICO and its benefits can be openly discussed on such platforms and positive reviews can change the game for you. The blockchain communities have also gained credence among investors and startups as their reviews are highly valued.
Cryptocurrencies have clearly emerged as a potential platform for startups to raise funds efficiently, quickly and cheaply. This technology has equated the market for everyone and removed the multi-layered procedures in transactions. It has also allowed entrepreneurs to develop decentralized programs to the global audience for free. Along with everything, it is giving many techno-enthusiasts a chance to evolve. With the burgeoning demand of cryptocurrencies, comes the need for cryptocurrency development services which are still not sufficient to meet the global requirement. The global markets have high hopes in the year 2018 and expecting the same success as the previous year.
