Some of the links are affiliate links and I earn commission from them. Moreover, as an Amazon Associate, I earn from qualifying purchases.
Without a doubt, BTC is slowly but surely becoming a mainstay in the business world. More and more establishments are starting to accept crypto as a mode of payment, so rest assured that it will be a mainstream practice soon. So ,in this post we have covered the most common questions of start-up owners that can bitcoin fund your business.
And nowadays, it’s no secret that the world leans more toward the digital age. With this, businesses across the globe are beginning to wonder whether it’s safe to use cryptocurrencies such as Bitcoin to fund their operations. Moreover, some crypto-backed business loan programs also aim to join the trend.
The Basics Of Bitcoin
Cryptocurrency has always been viewed as a substitute for typical currencies such as USD and EUR. And in fact, its decentralized nature makes it relatively stable from external stimuli. However, it’s also important to note that crypto’s value is deeply tied to a specific anchor.
And in Bitcoin’s case, its value is dependent on the computing power required to produce coins. And as the computing resource become less and less due to the high demand for coin production, BTC’s value soars higher.
Moreover, Bitcoin’s value also depends on external factors such as the market cap and sentiment. Therefore, you may use cryptocurrency trackers like Coins.live to monitor its movement as listed by the market cap. It will help you stay on top of your crypto game by determining its changes in values and prices. And if you ever decide to release your BTC asset into the market, its value will be defined by similar external factors.
Can Bitcoin Fund Your Business?
Fundraising and investment schemes are necessary steps to take if you want to generate sufficient funds for your company — be it a startup or a long-haul business. The two are also prerequisites if you aim to benefit from the crypto market. Because of this, Bitcoin and other major cryptocurrencies are becoming common means to help companies with their fundraising plans.
However, you should realize that Bitcoin isn’t just a simple currency. To fully understand it, you should view it as an open-source, decentralized investment platform capable of hosting various financial goods and services. Moreover, it boasts multiple properties that can cater to the international marketplace compared to the current foreign exchange market:
The entirety of the Bitcoin network exists online, meaning anyone with an Internet or WiFi connection can send, receive, and watch the coins. It’s an excellent perk because there’s transparency within the funds. Plus, you can even pay your employees with Bitcoins.
- Low Transaction Fees
Just like transferring funds from your bank account to another, you can also trade BTC. However, it boasts a significant benefit: you won’t need to pay enormous sums for the transaction fees because there’s no middle man involved. The low transaction fee only serves to maintain the current network.
- Speedy Asset Transfers
As a business owner, you’re probably well aware of the fact that transfers from IBACS, SWIFT, and other banks take several days to process. But with Bitcoin’s direct nature, transfers only take minutes despite large geographical distances and transaction value.
- Identity Protection
One of the most efficient perks of using Bitcoin is that your identity will be kept anonymous. Unlike a typical bank, you won’t need to provide any personal information to send and receive BTC assets. The only details you’ll need to provide are the exact amount and BTC addresses involved.
These four factors combine to make Bitcoin appear like one of the most practical choices for crowd-sourced loans. Moreover, thanks to its borderless nature, you may use it to open your business into a new world of potential funders. Remember, money can be sent from all over the world instantly — and cybersecurity won’t be a problem as long as you take proper precautions.
Bitcoin As A Source Of Funding
In this day and age, you can immediately release your coin version into the market through tokens. And to do this, you must tie your new coin to the goods you’re about to offer. However, you may also choose to link your coin’s value to your company’s value as an alternative to the former.
If you choose to do the former, you’ll need to deliver value by delivering a strategically attractive and mature product idea. Because unless probable consumers are thrilled about your product launch, your coin’s value will hardly increase.
Another factor to consider is the product delivery itself. If you fail to provide a product that can deliver your promises and claims, your coin’s value may plunge in the market. So if you’re a startup company, make sure to have an excellent product on your first launch to garner more investors.
There are plenty of market opportunities that you can explore anytime, making today the most appropriate time to learn all about them.
So if you’re wondering if you should start taking a look into funding your business using Bitcoin and other cryptocurrencies, now is the time to do your research. Because if you’re willing to take a risk in exchange for high rewards, Bitcoin funding might be the way to go.