Cryptocurrencies are still in their relative infancy and already they are radically changing the world of business, and especially of start-ups. Smart investors and innovators are turning to cryptocurrencies to shake up their way they’re doing business, with some surprising results. Here are four ways crypto is helping businesses to expand
Crypto has revolutionised crowdfunding
For start ups and small businesses looking to raise capital quickly, crypto offers and exciting way to very efficiently access a large pool of internationally based potential investors. One interesting way this is done is by selling company shares in the form of crypto tokens, which can be traded straight away and therefore give a company instant liquidity.
Crypto payment systems are quicker and more efficient
More companies are beginning to accept crypto because doing so side steps numerous transaction fees that can be a real hurdle for growing businesses, particularly ones that are beginning to expand overseas. Overstock.com became the first company to accept payment by Bitcoin back in 2014, amassing orders to the value of $126,000, from all over the world, in the first 24 hours. Many successful business people (and particularly young entrepreneurs) are seriously analysing crypto and how it can potentially help their businesses. Famous young entrepreneur Carl Silverstone said recently that he is looking at crypto for his companies.
Cryptocurrency democratises investment in businesses
It used to be that venture capital funds and high-value angel investors held a monopoly over early stage investment in companies. But now, with the growth of crypto and as more and more companies are branching out in the ways they invite investment, there are greater opportunities for more people to get involved in the start of companies with huge growth potential. One such example is Erik Finnman, who chose to invest in Bitcoin and became a Bitcoin millionaire aged 18.
Cryptocurrency reduces fraud
Because transactions carried out in crypto are anonymous and the data is encrypted before being stored on a kind of public ledger (known as a “blockchain”) accepting payments in cryptocurrency means you are not storing your customers details. This hugely reduces the risk of fraud and identity theft. For any business, facing fraud and theft of customer details is a big deal, but for new and growing businesses where customer trust is so important, this can be a disaster.
So, there are many ways that exploring the crypto and the flexibility it offers can help expand businesses of all sizes. And this is just the beginning, as crypto grows and becomes more broadly accepted, you’ll be very happy that you had the brains to get involved early.