The market of cryptocurrency is growing fast with a promise to turn the world around. New cryptocurrencies are emerging every day, only to be pumped and dumped by speculators. Here are top reasons why VCs are so interested in the cryptocurrency boom.
Now a global phenomenon, cryptocurrency was a side product of another invention known as Bitcoin, which was created as a peer-to-peer electronic cash system. Broken into a simple mechanism, it consists of a network of peers, recording the history of all transactions and thus of the balance of every account. The best part of it is that it uses a decentralised network which prevents any ruling party from abusing it.
If someone tries to create multiple (thousands) peers and spreads of the forged transaction, it would break the system immediately.
A 2017 survey depicts that more than $1.5 billion has been raised through initial coin offerings or Initial Coin Distribution (ICO). The growth rate of US mobile payments is expected to hit $142 billion by 2019 through peer-to-peer, in-person, remote transfer payments. How this works is simple. In peer-to-peer transfer, one person pays another person using a mobile device to initiate, authenticate and transfer funds. In-person purchases are initiated using a mobile device where the buyer and seller are present and the product/service gets delivered immediately. The third is payment, known as remote payments, where a buyer purchases goods or services using a mobile device, without being physically present and goods take a while to get delivered.
Cryptocurrencies, also known as “digital gold”, is a sound money which is secure and free from any political influence and can be preserved and increased in value over time. Used for making payments, the market of cryptocurrency is growing faster than ever for investors and speculators, with daily volume exceeding that of the European stock exchange. While the most famous cryptocurrency remains to be Bitcoin, investors are keeping an eye on several other cryptocurrencies such as Ethereum, Ripple, Litecoin, Ethereum Classic, Monero, to name a few.
The market of cryptocurrency is growing fast like a wildfire with a promise to turn the world around.
New cryptocurrencies are emerging every day, surviving for few months only to be pumped and dumped by speculators, who live on zombie coins to see a return on their investment.
Recently, I read an article somewhere, which said that “in the coming years, cryptocurrencies will gain legitimacy as a protocol for business transactions, micropayments, overtaking the preferred remittance tool”. Well, cryptocurrency is not going away and is here to stay, with Asia being a vivid market where Bitcoins are re-emerging, flourishing vividly using darknets of cybercrime. As the revolution is already in place, investors and top-tier venture capital funds are showing interest and are taking advantage of the recent explosion of what is called, “crypto-hedge funds” at its earliest stage.
Here are top reasons why VCs are so interested in the cryptocurrency boom:
The market cap of Bitcoin is growing triple the times than expected and is now close to $20 billion, even though it is allegedly owned by less than a thousand people. Venture capitalists are looking hard into the new growing crypto-community, funding Blockchain projects, driving a faster innovation. Blockchain may be at the same stage as the internet was back in the 19th century, however, it has opened a new set of possibilities and is adding value to many industries such as finance, health, education, government, and many more. This is the right time to look at the growth which crypto boom will bring in the next five to 10 years. Are you in?
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)