Cryptocurrency is gradually changing people's perception and view in terms of transaction and payment. Cryptocurrency brings to the table lots than the convention banking system does with the way capital can be raised, transparency and all through a decentralized system - blockchain.
Blockchain is not a new word anymore, It is the technology which enables cryptocurrency transactions. It can be likened to the heart of Bitcoin.
Entrepreneurs who intend to stand out in this digital age are well positioned to be early adopters of this cutting edge technology, blockchain.
1. Fund Raising
Cryptocurrency and the blockchain brings a whole new way of raising capital with what's called ICO- Initial Coin Offering. Several start-ups around the world are already keying into this. The ICO presents a wide reach to investors who may want to invest into your business/start up.
The valuation of a business is easily ascertained and reflects publicly by the market as the tokens get tradable bringing some form of liquidity to the business.
An example of start up that raised fund through the ICO is Ethereum. Vitalik Buterin created an avenue for people to build bad ass applications and services on his blockchain.
2. Direct Transactions
With cryptocurrency, transaction of value between peer to peer is made possible in a faster, cheaper, with little/zero transaction cost when compared to the traditional method of payment.
For a start up, introducing cryptocurrency as a form of payment brings reduced/zero transaction fee and a quicker transaction. It's just a matter of time before several companies boycott the long process involve of opening a bank account and using the banks for receiving and sending funds.
Overstock became the pioneer retailer to start bitcoin payment acceptance. In it's first 22hrs, it amassed over $126,000 from 800+ orders. This goes to show the way people clamour for and will welcome cryptocurrency as a form of payment.
3. Investing for the Future
Cryptocurrency presents for business people a life time opportunity. At no point in existence has financial investors had access to growing a company/start up. Cryptocurrency ushers into the wonderful innovation of our time and given them the opportunity to start growing their business.
Erik Finnman in 2011 invested in bitcoin, at the age of 18 he already became a Bitcoin whale/tycoon. This kind of stories will not be made possible in the traditional fundraising process.
4. Blockchain development
The great technology behind the Bitcoin and some cryptocurrencies offers a strong framework in which companies can invest their ideas/innovations and create a new business in a decentralized way.
The Ethereum blockchain for example allows several organizations to develop blockchain applications rapidly and free. OmiseGo, a payment organization leveraging on the blockchain provides banking services to the billions of the unbanked populace.
Cryptocurrency will continually provide cheap means for entrepreneurs to globally create value. Business visionaries can tap in by transferring value through the blockchain.