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Bitcoin blockchain technology is interrupting many industries. Bitcoin is a form of digital currency. That you can easily buy or sell by using bitcoin wallets. So, this type of technology is very useful in every field of life. It creates a crowdfunding opportunity.
What is Bitcoin?
Bitcoin is a type of cryptocurrency. That was invested in 2008 by an unknown person or group. In 2009, it was released as open-source software. There is no physical shape of this currency. You can only convert bitcoin currency into your country currency to use. By using bitcoin currency you can buy or sell online things in special markets. In America, you can buy products or services by using bitcoin cryptocurrency. It is the new and latest trending currency.
Bitcoin is used in some trading sites for different purposes. So, these sites help their beginner or expert users to buy bitcoins. In today’s world, everyone wants to invest in bitcoin. Because it becomes a rage of every business person.
Every person wants high profit. So, Bitqt is provided for you to get a high profit. If you want to earn a high profit by using bitcoin cryptocurrency. You need a crypto savings account. These saving accounts pay you more than 12 percent.
What is Crowdfunding?
Crowdfunding is a method that provides the use of a small amount for a large number of individuals. It is used to finance a new business venture. Crowdfunding provides the best way to connect investors and entrepreneurs. It is a pool of potential investors. It also expands the pool of investors beyond the traditional circle of owners.
What is Blockchain?
Blockchain is a distributed ledger technology. That is duplicated between multiple computers connect with a network. In cryptocurrency, a block is a single record of new transactions. Every next block is connected to the other block/ transaction. The list of blocks can create a chain. This blockchain is called the blockchain.
Every entry that is put into the blockchain is incredible and secure. No one can be to change or manipulate it.
Why Traditional Business Funding Is Hard To Get?
In traditional business funding, it is required to make three forms
- Self Funding
- Bank Funding
- Venture Capital
Self Funding
Self-funding is a type of traditional business funding. It provides a limit for transfer funds.
Bank Funding
Another example of traditional business funding is bank funding. It required the existing business that gets good revenues and cash flow.
Venture Capital
Venture capital is the last type of form that is used in traditional business funding. It required a product or services for funding. That has mass appeal.
These three forms make traditional business funding very difficult. This process is limited and hard for newer businesses. This process makes every traditional business funding is hard.
Why Traditional Crowdsourcing Is Still Inefficient?
Crowdfunding allows different businesses to raise their funds with great products or services. It gets small investment amounts from regular people. When a business does crowdfunding, it boosts up its business.
Companies That Make Popular Crowdfunding
- Kickstart
- Indiegogo
- Crowdfunder
But here the problem is that the crowdfunding model is still extremely inefficient. This is the biggest issue of traditional crowdfunding.
Blockchain or Bitcoin Crowdfunding could be Disruptive
As I discuss in the previous topic crowdfunding model is very inefficient. Because of its bad and complicated working. But bitcoin or blockchain can boost its efficiency. Because blockchain makes the funding process safe. And also offers complete access from anywhere on the earth. Every crowdfunding that uses the bitcoin blockchain. Can help to maximize the success level of a project. There are many ways blockchain and crowdfunding available. That is used for helping fund businesses.
Several Ways Of Blockchain And Bitcoin Crowdfunding
- Initial Coin Offerings (ICOs)
- Infrastructure to facilitate bitcoin crowdfunding
- Stratis raised over 100,000$ with bitcoin crowdfunding
Initial Coin Offerings (ICOs)
Initial coin offering (ICOs) is offering a new cryptocurrency on a blockchain platform. Companies use initial coin offerings to make a company currency stock. All the crowdfunding platforms are working in the same way. They create a new project and then post it. After posting a project they ask a group of people for funds. This group of people is interested in backing them with funds.
Initial coin offering will help investors to buy a share of the project by using cryptocurrency. The value of the share depends on the market. If this project is doing well, then the price of the project will increase.
Infrastructure To Facilitate Bitcoin Crowdfunding
Blockchain technology is new in the market. Bitcoin cryptocurrency that is launch in 2009. It is the very first cryptocurrency that uses blockchain technology. The bitcoins owner is creating the blockchain market. Because they are interesting to get the advantage of it.
OpenLedger is a project that uses blockchain technology in the field of crowdfunding. It operates like a stock market for Cryptoequity. Different companies can release the ICO by OpenLedger to raise funds. Now, Cryptoequity is start trading on OpenLedger.
Stratis Raised Over 100,000$ With Bitcoin Crowdfunding
Many different approaches are used by different crowdfunding. Stratis company is one of them. It created a platform that allows them to make a blockchain. It provides very fast apps that are based on new technology. Sometimes it is hard to get funds.
Stratic creates ICO to raise their funds in 2017. This technology only accepts a payment that is in the form of bitcoins. They give more than 100,000$ to this technology.
Conclusion
We hope you will understand what is the effect of bitcoin and blockchain on crowdfunding. How it becomes a successful method for investors and entrepreneurs. It also allows the business to transfer funds easily. I also explain the issues with traditional business funding. And also explain the bitcoin and blockchain can overcome these issues. I hope this article is helpful for you and easy to understand. If you have any problems or questions about this topic, please ask them in the comment section.
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