Cryptocurrency has changed the way we invest our savings, raise capital, and perform transactions with decentralized digital cash. It is a once-in-a-lifetime creation that presented our lives with such a breakthrough, especially in financial technology. After several years since the existence of Bitcoin and other cryptocurrencies, entrepreneurs are seeing the benefits of adopting blockchain technology in their dealings this 2018, as the use of cryptocurrency can give entrepreneurs advantages in their chosen business. Many countries still do not recognize cryptocurrencies as investment and financial instruments, however, this year and the coming years, we can expect that the cryptocurrency landscape will rapidly change and many people will soon realize its huge rewards.
Easy Method of Raising Capital
There are different ways to raise capital but cryptocurrency has transformed these techniques. Today, initial coin offerings can help raise money quickly without the high prices from a wide pool of investors from several parts of the world. The market mostly reflects the valuation of a company, which can be challenging for startup businesses. With cryptocurrency, shares come in the form of tokens, and they can be traded almost immediately, which is helpful for the liquidity of a company.
Quick and Secure Transactions
The international bank to bank transfers these days are still quite complex and they often take a week to complete. Startups and small businesses that consider their key performance indicators (KPIs) cannot wait that long. In such cases, cryptocurrency and any blockchain can help because it is a distributed ledger where data is stored across thousands of nodes or computers connected to a network all around the world. Therefore, blockchain commands an enormous computational power, which allows transfers to take place within seconds. Additionally, no central entity will manage and confirm transactions. It can be advantageous because it means no one can hack into the network to manipulate ledgers to benefit them.
Transparent Management
Blockchain technology is the cornerstone of many cryptocurrencies. It allows startups to lower frictional expenses in their transaction systems. Apart from that, cryptocurrencies are digital assets, so they are basically data with no physical cash or coins. It is why some traders are interested in commodity spread betting because they do not own the actual cryptocurrency. Although this method is not allowed in the US and other parts of the world, it is widely active in the UK. Today, existing networks of businesses are expensive, inefficient, and vulnerable to attacks on their data. What we need is a secure, resilient and transparent technology, which blockchain delivers since it is impenetrable to any interference.
No Intermediaries Needed
Cryptocurrencies do not require the assistance of intermediaries, such as banks, law, real estate firms, and money-transfer systems among others. For entrepreneurs, it is a huge benefit because they can cut out middlemen, which can lead to various other advantages, including faster operation speeds, massive reduction in costs of products and services, and fewer mistakes. These things are all possible with the strong smart contracts which ensure performance do not have alternatives to the courts.
Great Investment Opportunities
Cryptocurrencies have various practical uses. One of the most significant is that they can be at least partially utilized to increase and preserve the finances of a company or an individual. Think about it this way: if you purchased Bitcoin back in 2010 when the price was just less than a dollar, you would have about $20K right now. If you bought 100 Ethereum, you would be enjoying $2 million in 2018.
