Cryptocurrencies and Entrepreneurship: New Opportunities for New Business

Ever since its public release in 2009, the Bitcoin platform has been changing the way we view and understand money. Today, there is a wide variety of cryptocurrencies - a product of the revolution that Bitcoin was the main proponent of. As entrepreneur and crypto expert Troy Osinoff said in a recent Forbes article, “Bitcoin could be viewed as an evolution of the current financial system, and as more blockchain- and Bitcoin-oriented in tech startups come into existence, Bitcoin will be able to make a much larger impact”. Indeed, these platforms have the potential to result in even greater shifts from paper to digital currency - and we’re just now beginning to understand the business opportunities that can be created with them.

The allure of digital currencies comes mainly from the fact they are radically different to traditional ones in virtually every single aspect. Bitcoin isn’t tangible - it exists exclusively in a digital setting. It’s also completely decentralized, meaning there is no central authority, both on a global and a national level, that regulates it in any way. Bitcoin’s price, and the price of every other crypto is determined by the market itself. As far as bitcoin generation goes, this is part of the currency’s programming process.

The way Bitcoin and, by extension, other popular digital currencies operate is with a blockchain method that ensures complete transaction transparency while keeping personal information encrypted, hence the “crypto” part. Every piece of relevant data is kept in a “ledger” which assumes the form of a transaction block: in order to verify the transactions, “miners” have to solve a hash version of them, ensuring validity and accuracy. Digital currencies usually start out volatile and simmer down with time, as was the case with Bitcoin - while fluctuations are still a common occurrence, its current market cap of around $41 billion shows that digital currencies are reaching new heights in popularity and power.

So what implications does this have for entrepreneurs? Osinoff relates the constantly increasing appeal of digital currencies with the natural evolution of markets in a world where many industries are looking towards decentralized global presence. I’m inclined to agree - platforms like Bitcoin don’t just re-shape the business world, they also offer significant new opportunities to emerging business and startups. Take initial coin offerings, or ICOs, for example. An alternative to the traditional methods like angel investors or venture capital, digital coins can serve as the means to crowdfund a pool of money. The ones who participate in the founding are rewarded with “pre-mined” coins, which can be considered a type of stock with serious potential for a significant increase in value. What’s more, Bitcoin isn’t your only option for such endeavors, even though it is admittedly the most viable - altcoins such as Ethereum and Golem are also worthwhile variants to look into.

With that said, entrepreneurs should be on their toes when exploring crypto opportunities for raising capital. While the Internet is by far the most exhaustive source of knowledge for digital currencies, there is a ton of misleading information and empty hype talk out there. There is no shortage of sketchy altcoins and well-disguised scams, so those of you who take interest in getting further acquainted with digital currencies as a means of fueling your entrepreneurship goals should make it a priority to start from the basics and use your business sense. Surrounding yourselves with reliable and credible sources that not only speculate on lucrative opportunities but also go the extra mile in explaining how things work on a fundamental level is a surefire way of avoiding a financial disaster and making full use of the value cryptocurrencies offer in entrepreneurship.

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Sources
How The Bitcoin Revolution Will Affect Entrepreneurs